Form Il-2220 - Instructions - Illinois Department Of Revenue

Illinois Department of Revenue

IL-2220 Instructions

2014

General Information

What is late-filing or nonfiling penalty?

What’s new for 2014?

A late-filing or nonfiling penalty is a penalty assessed for failure to file

Taxpayers can now elect to receive their overpayments as credits carried

a processable return by the extended due date. The penalty is the lesser

forward even if the election is made after the extended due date of their

of $250 or 2 percent of the tax amount required to be shown due on your

return. Form IL-2220 has been redesigned to accommodate this change.

return, reduced by any payments made by the original due date and any

Do not include credits carried forward from a prior year on Step 2, Line

credits allowed on your return.

11. Instead, include all credits carried forward on Step 4, Line 18. See

An additional penalty will be assessed if you do not file a processable

the Specific Instructions for more information.

return within 30 days of the date we notify you that we are not able

What is the purpose of this form?

to process your return. This additional penalty is equal to the greater

of $250 or 2 percent of the tax shown due on your return, determined

This form allows you to calculate penalties you may owe if you did not

without regard to payments and credits, and may be assessed up

• make timely estimated payments,

to a maximum of $5,000. For more information, see Publication 103,

• pay the tax you owe by the original due date, or

Penalties and Interest for Illinois Taxes.

• file a processable return by the extended due date.

What if I underpaid my estimated tax because of a

The late-payment penalty for underpayment of estimated tax is

change in the law during the tax year?

based on the tax shown due on your original return. Do not use the tax

shown on an amended return filed after the extended due date of the

If a change in the IITA enacted during the tax year increased your liability,

return to compute your required installments in Step 2.

and the new statute does not specifically provide for relief from penalties,

Do I need to complete this form if I owe penalties?

you may reduce or eliminate your penalty for underpayment of estimated

tax by using the annualized income installment method in Step 6 and

No, you do not need to complete this form if you owe penalties. We

encourage you to let us figure your penalties and send you a bill instead

computing your income and liability for each period according to the IITA

of completing and filing this form yourself. If you let us figure your

in effect as of the end of that period. See Specific Instructions for Step 6.

penalties, complete your return as usual and do not attach Form IL-2220.

Specific Instructions

ou must complete this form if you are using the annualized

If a specific line is not referenced, follow the

income installment method for late-payment penalty for underpayment of

instructions on the form.

estimated tax in Step 6.

Step 2: Figure your required installments

For more information, see Publication 103, Penalties and Interest for

Illinois Taxes. To receive a copy of this publication, visit our website at

(

Form IL-1120 filers only)

tax.illinois.gov.

Line 5 —

Enter in Column A the total net income and replacement tax

What is late-payment penalty?

and surcharge entered on your 2014 Form IL-1120, Step 8, Line 53.

A late-payment penalty is assessed when you fail to pay the tax you owe

Enter in Column B the total net income and replacement tax entered on

by the due date. This penalty could result from two different underpayment

your 2013 Form IL-1120, Step 8, Line

53.

situations and is assessed at either 2 percent or 10 percent of the unpaid

If the preceding year’s return was for a short tax year, or you reported

liability based on the number of days the payment is late. The penalty

zero total net tax, enter “N/A” in Column B.

rates used on this form are for returns due on or after January 1, 2005.

“N/A” does not equal zero. If you entered “N/A” on Step 2,

For returns due before January 1, 2005, see Publication 103.

Column B, Line 5, you may still be required to make installments. See the

You will be assessed a late-payment penalty for unpaid tax if you do

instructions for Line 7.

not pay the total tax you owe by the original due date of the return. An

Line 7 —

If Column A, Line 5 is $400 or less, enter “0” and go to

extension of time to file does not extend the amount of time you

Step 3. Otherwise, enter the lesser of Column A, Line 6, or Column B,

have to make your payment.

Line 5. If you entered “N/A” in Column B, Line 5, enter the amount

You will be assessed a late-payment penalty for underpayment of

from Column A, Line 6.

estimated tax if you were required to make estimated tax payments and

You do not owe the late-payment penalty for underpayment of

failed to do so, or failed to pay the required amount by the payment due date.

estimated tax if you made timely estimated payments equaling at least

You do not owe the late-payment penalty for underpayment of estimated

90 percent of this year’s tax liability or 100 percent of the prior year’s tax

taxes if

liability (provided you reported a tax liability in the prior year and it was not

a short taxable year).

• you are not filing Form IL-1120;

Line 10 —

• you were not required to file Form IL-1120 for last year; or

Enter the amount of your required installment for each due

date. For most taxpayers, this is the amount shown on Line 8. (In this

• your current year’s net tax liability (Form IL-1120, Step 8,

case, the total amount of all columns of Line 10 should equal Line 7.)

Line 53) is $400 or less.

However, if you are annualizing your income, you must complete Step 6

If in the previous taxable year you filed a short year return or a

and enter the required installments from Line 45.

return showing no liability, you may still owe the late-payment penalty for

Annualized income installment method: If your income

underpayment of estimated tax. See the specific instructions for details.

was not received evenly throughout the year, you may be able to

lower or eliminate the amount of your required installments by using

the annualized income installment method in Step 6. If you choose

to annualize your income in Step 6, you must use this method for all

installments.

Page 1 of 5

IL-2220 Instructions (R-12/14)

Form Il-2220 - Instructions - Illinois Department Of Revenue - 2014

Related Articles

Related forms

Related Categories