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CCH Axcess Tax

Illinois Combined Unitary Processing Information

In the corporate tax program, the Illinois Unitary Business Group return can be prepared using one of the two methods described below.

In the S Corporation program, Illinois Unitary Business Group returns are prepared using Method 1.

In the Partnership program, Illinois Unitary Business Group returns are prepared using Method 1.

Method 1

This method is selected when using the Unitary Business Group Return Automated Feature. This feature uses Illinois Unitary Return Auto Automated worksheet to select the unitary business group members that are to be included in the unitary return. The unitary business group members can be corporations, or S corporations, or partnerships. You must process each separate company return before processing the combined unitary business group return. If a company is to be included in the combined group you MUST enter an "X" in the Illinois General Worksheet > Basic Data Section > Member incluuladed in IL Unitary Business Group field.

Method 2 (1120 only)

Illinois combined returns are processed in essentially the same manner as the federal consolidated returns. You must process each separate company return before processing the combined unitary business group return. If a company is to be included in the combined group you MUST enter an "X" in the federal General category > Basic Data workshee > Consolidated Return Information section, "X if Return may be Included in a Consolidated Return." This box will NOT affect the processing of a regular separate federal return but will save off data which is essential to process the Illinois combined return. If "IL" is not the state indicated on the federal General category > Basic Data worksheet > Return Identification section, for the parent or subsidiary return, an Illinois entry must be entered to generate an Illinois return for the separate companies.

The membership of the Illinois unitary group can be different than that of the federal consolidated group. If any of the companies listed on the federal Consolidated Tab > Membership Information worksheet are not to be included in the Illinois unitary combined return, enter "IL" on the federal State/City Common Data worksheet > General Information section > State/City code field and "Yes" on the Consolidated/Combined Return Information section, Member of federal consolidated but not for state field.

Schedule UB name, address and employer identification number overrides are available on federal Consolidated category > State overrides worksheet. The "State Code" entry on federal Consolidated category > State overrides worksheet is required to override the Illinois name, address and employer identification number. Enter "IL" in the "State Code box on federal Consolidated category > State overrides worksheet to override the information on Schedule UB and on the combined return, Form IL-1120.

Partnership

Using entries from the federal tax return and on Illinois worksheets, the following forms and schedules are prepared for the Illinois combined unitary return.

• Schedule UB, Combined Apportionment for Unitary Business Group, Parts I through IV
• Schedule NLD, Illinois Net Loss Deduction
• Form IL-1065, Illinois Corporation Income and Replacement Tax Return
• Form IL-1065-X, Illinois Amended Corporation Income and Replacement Tax Return
• Form IL-505-B, Payment of Automatic Extension
• IL-516-I, Pass-through Prepayment Voucher for Withholding on Ind & Estates
• IL-516-B, Pass-through Prepayment Voucher for Withholding on corp, part, & trusts
• Form IL-1065-V, Payment Voucher for Corporation Income and Replacement Tax
• Schedule 1299-A, Income Tax Credits
• Form IL-4562, Special Depreciation
• Schedule M, Other Additions and Subtractions
• Schedule NB, Nonbusiness Income
• Form IL-477, Replacement Tax Investment Credits
• EF K-1-P, Schedule K-1-P Received
• EF K-1-T, Schedule K-1-T Received
• Schedule 80/20, Related Party Expenses
• Schedule 4255, Recapture of Investment Tax Credits
• Schedule F, Gains from Sales or Exchanges of Property Acquired Before August 1,1969
• Form IL-2848, Power of Attorney