Form It 04-3 - Recommendation Form For Disposition (Page 2 of 5) in pdf

Form It 04-3 - Recommendation Form For Disposition Page 2

FINDINGS OF FACT:

1. The taxpayer filed a 1999 Illinois income tax return, Form IL-1120, which

shows the taxpayer’s federal taxable income as $40,466. (Taxpayer Ex. #5)

2. The 1999 Illinois income tax return also shows a deduction for an NOL

carryforward from previous years in the amount of $40,466. (Taxpayer Ex. #5)

3. The taxpayer’s address on the 1999 Illinois income tax return is Anywere,

Iowa. (Taxpayer Ex. #5)

4. During the years 1988 through 1997, the taxpayer filed income tax returns in

the state of Iowa. The Iowa returns show losses for most of the years. (Dept. Ex. #2)

5. In 2002, the taxpayer filed Illinois income tax returns for the years 1988

through 1997 that showed the same amount of losses that were shown on the Iowa

returns. (Dept. Ex. #2)

6. The taxpayer is incorporated under the laws of Iowa. On October 30, 1998,

the state of Illinois issued a Certificate of Authority to the taxpayer to transact business in

this State. (Taxpayer Ex. #1)

7. In 1999, the taxpayer began operating a bookstore and novelty shop in

Anywhere, Illinois. (Tr. pp. 15-16)

8. On February 6, 2003, the Department issued a Notice of Deficiency to the

taxpayer showing a deficiency in the amount of $2,834, plus interest, for the tax year

1999. A copy of the Notice was admitted into evidence under the certificate of the

Director of the Department. (Dept. Ex. #1)

Form It 04-3 - Recommendation Form For Disposition Page 2