Form Il-2220 - Instructions - Illinois Department Of Revenue

Illinois Department of Revenue

IL-2220 Instructions

2011

General Information

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

What is the purpose of this form?

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

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

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

Penalties and Interest for Illinois Taxes.

• make timely estimated payments,

What if I underpaid my estimated tax because of a

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

change in the law during the tax year?

• file a processable return by the extended due date.

Form IL-2220, Computation of Penalties for Businesses,

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

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

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

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

you may reduce or eliminate your penalty for underpayment of estimated

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

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

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

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

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

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

Specific Instructions

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

If a specific line is not referenced, follow the

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

instructions on the form.

ou must complete this form if you are using the annualized

Step 2: Figure your required installments

income installment method for late-payment penalty for underpayment of

estimated tax in Step 6.

(

Form IL-1120 filers only)

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

Line 5 —

Write in Column A the total net income and replacement tax

Illinois Taxes. To receive a copy of this publication,

written on your 2011 Form IL-1120, Step 8, Line 52.

• visit our website at tax.illinois.gov;

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 2010 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 6 —

Follow the instructions on the form.

Line 7 —

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

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

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

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

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

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

Column A, Line 6.

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

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

We will waive the late payment penalty for underpayment of

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

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

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

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

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

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

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

Lines 8 and 9 —

Follow the instructions on the form.

have to make your payment.

Line 10 —

Write the amount of your required installment for each due

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

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

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

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

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

the required installments from Line 45.

date.

Annualized income installment method: If your income

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

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

taxes if

lower or eliminate the amount of your required installments by using

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

• you are not filing Form IL-1120;

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

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

installments.

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

Line 11 —

Line 52) is $400 or less.

•

Credit carryforwards: write the amount of credit carried forward

What is late-filing or nonfiling penalty?

from the prior year in Quarter 1.

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

•

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

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

Withholding, include the amount of withholding in four equal

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

installments.

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

credits allowed on your return.

•

Pass-through entity payments: If you received an Illinois

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

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

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

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

the pass-through entity’s tax year ended.

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

IL-2220 Instructions (R-12//11)

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Form Il-2220 - Instructions - Illinois Department Of Revenue - 2011

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