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if your original return was filed late and no

tax you owed by the original due date of

payment, since interest begins to accrue

penalty was assessed because you had

your return, even if you had an extension

from the day after the due date of the

an overpayment and you are now report-

of time to file. The penalty is 6 percent per

original return.

ing an increase in tax.

year on the amount of unpaid tax remain-

Note: For more information refer to

ing after the original due date and will

Publication 103, Uniform Penalties and

accrue until the tax is paid. This penalty

Late payment penalty

Interest. To receive a copy of this publica-

does not apply to tax years ending before

tion, see “What if I need additional assis-

Late payment penalty for underpayment

January 1, 1986.

tance?” for our phone numbers and

of estimated tax — For returns due on or

addresses.

after January 1, 1994, you owe this

Penalty for underpayment of

penalty if you were required to make

estimated tax

Who should sign the return?

estimated tax payments and failed to do

so, or failed to pay the required amount by

For returns due prior to January 1, 1994,

Your Form IL-1120-X must be signed by

the payment due date. This penalty is

you owed this penalty if you failed to pay

the president, vice president, treasurer, or

figured separately for each quarter.

the required amount of estimated pay-

any other officer duly authorized to sign

Therefore, you may still owe this penalty

ments on time. This penalty is 24 percent

the return. If you paid someone to prepare

even if you paid enough tax later to make

per year of the unpaid amount for the

your return, that individual must also

up the underpayment from a previous

period of the underpayment. If you file

provide a handwritten signature, date the

quarter. You may use Form IL-2220 to

Form IL-1120-X for these tax years, your

return, and provide his or her tax identifica-

calculate this penalty.

original penalty will not change.

tion number. If the preparer is an employee

Penalty percentage rates

or partner of a firm or corporation, he or

Interest

she must also provide the firm’s name,

• Returns due on or after January 1,

address, and instead of the preparer’s

1998: the penalty rate is 20 percent.

For returns due on or after January 1,

taxpayer identification number he or she

1994, interest is calculated on tax and

• Returns due January 1, 1994, through

must provide the firm’s FEIN. A self-

penalties from the day after the original

December 31, 1997: the penalty rate is

employed preparer must check the “self-

due date of your return through the date

15 percent.

employed” box and provide his or her

you pay the tax and penalties. Interest is

name, address, and taxpayer identification

simple interest figured using a daily rate.

This penalty is calculated on the amount of

number in the appropriate spaces.

We review the rate twice each year - on

required estimated tax due for each

January 1 and July 1 - and adjust the rate

quarter, minus any timely payments and

Be sure to attach all required copies of

as necessary in accordance with the

credits.

forms, schedules, and any powers of

underpayment rate established in

attorney.

If you file Form IL-1120-X within the

Section 6621 of the IRC.

extended due date period, the penalty will

If your original return resulted in an

be recalculated using the tax amount on

overpayment and you are now increasing

your latest filed return. If you file

your tax, interest will be assessed on

Form IL-1120-X after the automatic

• the refund amount - from the date the

extension period, your original penalty will

refund was issued, or

not change.

• the amount credited to a subsequent

Late payment penalty for unpaid tax —

year - from the first quarter estimated

For returns due on or after January 1,

payment due date of that year.

1994, you owe this penalty if you failed to

pay the tax you owed by the original due

We will bill you for interest due. However, if

date of your return, even if you had an

you want to calculate your interest, contact

extension of time to file.

us for the interest rates that were in effect

at that time.

Penalty percentage rates

For returns due July 1, 1986, through

• Returns due on or after January 1,

December 31, 1993, the interest rate is

1998: the penalty rate is 20 percent.

9 percent per year. For returns due prior to

• Returns due January 1, 1994, through

July 1, 1986, contact us and we will

December 31, 1997: the penalty rate is

provide you with the rates that were in

15 percent.

effect at that time. Interest is calculated on

tax from the day after the original due date

This penalty is calculated on the amount

of the return through the date you pay the

required to be shown due on your return,

tax. Interest is calculated on penalty from

minus timely payments and credits, and

the date of notification of the penalty until

minus the tax used in calculating the

you pay the penalty.

underpayment of estimated tax penalty.

We pay interest on overpayments and

Note: If you are reporting a federal

charge interest on underpayments at the

change, this penalty will not be assessed

same rate.

if you file Form IL-1120-X and pay the tax

you owe within 120 days of the federal

It is to your advantage to pay the tax you

finalization date.

owe as soon as possible, rather than

waiting for a notice and demand for

For returns due prior to January 1, 1994,

you owe this penalty if you failed to pay the

IL-1120-X Instructions (R-12/97)

Page 4 of 4

Instructions For Form Il-1120-X - Amended Corporation Income And Replacement Tax Return Page 4

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