Form Il-2220 - Instructions - Illinois Department Of Revenue

Illinois Department of Revenue

IL-2220 Instructions

2012

General Information

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

What is the purpose of this form?

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

Penalties and Interest for Illinois Taxes.

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

What if I underpaid my estimated tax because of a

• make timely estimated payments,

change in the law during the tax year?

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

• file a processable return by the extended due date.

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

Form IL-2220, Computation of Penalties for Businesses,

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

may only be used with original returns or revised returns filed before the

you may reduce or eliminate your penalty for underpayment of estimated

extended due date. If you are filing an amended return for any reason,

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

you cannot use Form IL-2220 to calculate your penalties.

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

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

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

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

Specific Instructions

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

If a specific line is not referenced, follow the

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

instructions on the form.

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

Step 2: Figure your required installments

ou must complete this form if you are using the annualized

income installment method for late-payment penalty for underpayment of

(

Form IL-1120 filers only)

estimated tax in Step 6.

Line 5 —

Write in Column A the total net income and replacement tax

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

written on your 2012 Form IL-1120, Step 8, Line 52.

Illinois Taxes. To receive a copy of this publication,

Write in Column B the total net income and replacement tax written on

• call our 24-hour Forms Order Line at 1 800 356-6302; or

your 2011 Form IL-1120, Step 8, Line

52.

• call our TDD (telecommunications device for the deaf) at

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

1 800 544-5304.

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

What is late-payment penalty?

Line 7 —

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

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

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

Line 5. If you wrote “N/A” in Column B, write the amount from

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

Column A, Line 6.

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

We will waive the late payment penalty for underpayment of

liability based on the number of days the payments are late. The penalty

estimated tax if you timely paid the lesser of 100 percent (rather than

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

150 percent, as previously published) of the prior year’s tax liability or 90

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

percent of the current year’s tax liability. This form reflects that waiver.

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

Line 10 —

Write the amount of your required installment for each due

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

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

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

if you are annualizing your income, you must complete Step 6 and write

have to make your payment.

the required installments from Line 45.

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

Annualized income installment method: If your income

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

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

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

lower or eliminate the amount of your required installments by using

date.

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

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

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

taxes if

installments.

• you are not filing Form IL-1120;

Line 11 —

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

•

Credit carryforwards: write the amount of credit carried forward

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

from the prior year in Quarter 1.

Line 52) is $400 or less.

•

Gambling withholding: If you received a Form W-2G, Gambling

What is late-filing or nonfiling penalty?

Withholding, include the amount of withholding in four equal

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

installments.

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

•

Pass-through entity payments: If you received an Illinois

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

Schedule K-1-P or K-1-T showing pass-through entity payments

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

made on your behalf, write the entire amount in the quarter in which

credits allowed on your return.

the pass-through entity’s tax year ended.

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

For example, if your tax year ended on March 31, 2013, and your

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

Schedule K-1-P shows a tax year ending of June 30, 2012, you

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

would put the pass-through entity payment amount in Quarter 1.

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

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IL-2220 Instructions (R-12/12)

Form Il-2220 - Instructions - Illinois Department Of Revenue - 2012

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