Illinois Partnership Replacement Tax Return (Includes Schedule B)

Partnership Replacement Tax Return (Includes Schedule B)
2023 Form IL-1065 - Partnership Replacement Tax Return
Use your mouse or Tab key to move through the fields. Use your mouse or space bar to enable check boxes.
		
		

		

Illinois Department of Revenue

	

2023 Form IL-1065		

*32412231W*

Partnership Replacement Tax Return	

		
See “When should I file?” in the Form IL-1065 instructions for a list of due dates.	
If this return is not for calendar year 2023, enter your fiscal tax year here.
Tax year beginning
20
, ending
20
month

day

year

month

day

year

This form is for tax years ending on or after December 31, 2023, and before December 31, 2024.
For all other situations, see instructions to determine the correct form to use.

Step 1: Identify your partnership
	 A	 Enter your complete legal business name.

	

Enter your mailing address.
C/O:

		 Mailing address:
		City:	
	

State:

ZIP:

(FEIN).
		
L	
	 Check this box if you are a member of a
unitary business group and are included on a
Schedule UB, Combined Apportionment for Unitary
	 	 Business Group. Enter the FEIN of the member
		 who prepared the Schedule UB and attach it to this
return.

		
	M	 Enter your North American Industry Classification

C	 If this is the first or final return, check the applicable box(es).		

		 	First return	
		 	Final return (Enter the date of termination.

$

	K	 Enter your federal employer identification number

		 If you have a name change, check this box.	
		
Name:	

	 B	

Enter the amount you are paying.

		 System (NAICS) Code. See instructions.
		
	
							
N Enter the city, state, and zip code where your 		
	 D	 If this is a final return because you sold this business, enter the date sold
		 accounting records are kept. (Use the two-letter 	
		 (mm dd yyyy)
, and the new owner’s FEIN.		
		 postal abbreviation, e.g., IL, GA, etc.)
		
		
	E	 Apportionment Formulas. Check the appropriate box or boxes and
	 	
City 					State	
ZIP
		 see Apportionment Formula instructions.
	O	 If you are making the business income election 		
		 to treat all nonbusiness income as business 		
		 Financial organizations 		
Transportation companies
		 income, check this box and enter zero on
		 Federally regulated exchanges 	
Sales companies 	
		 Lines 36 and 44. 					
	 F		Check this box if you are: 	
	P	 If you have completed the following, check the box 	
		 	classified as an investment partnership				
		and attach the federal form(s) to this return.
		 Federal Form 8886	
Federal Sch. M-3,
		 	classified as a publicly-traded partnership				
							
Part
II, Line 10
	 G	 Check this box if you made an IRC § 761 election.								
			
	
Q
	
Check
this
box
if
you
attached
Form
IL-4562. 	
	 							
	H	 Check this box if you are a 52/53 week filer. 											
	R	 Check this box if you attached Illinois 		
	 I	 Check this box if you elected to file and pay Pass-through
		 Schedule M (for businesses).	
	 									
		 Entity (PTE) Tax. See instructions.														
	S	 Check this box if you attached Schedule 80/20.	
	J	 If you are paying Pass-through Entity (PTE) Tax and you annualized your
	T	 Check this box if you attached Schedule 1299-A.	
	 	
	
income on Form IL-2220, check this box and attach Form IL-2220.	
	 U	 Check this box if your business activity is
		 protected under Public Law 86-272. 	
	 V	 Check this box if you attached the Subgroup 		
		Schedule.	
mm

dd

yyyy

)

Attach your payment and Form IL-1065-V here.

	 	 	Step 2: Figure your ordinary income or loss			
	 (Whole dollars only)
00
	
1	 Ordinary income or loss, or equivalent from federal Schedule K.			
1	
00
	
2	 Net income or loss from all rental real estate activities. 	
		
2	
00
	
3	 Net income or loss from other rental activities.			
3	
00
	
4	 Portfolio income or loss.			
4	
00
	
5	 Net IRC Section 1231 gain or loss.	
		
5	
	
6	 All other items of income or loss that were not included in the computation of income or loss on
00
		 Page 1 of U.S. Form 1065. See instructions. Identify:
	
6	
00
	
7	 Add Lines 1 through 6. This is your ordinary income or loss. 			
7	
	
		
Step 3: Figure your unmodified base income or loss
00
	
8	 Charitable contributions. 	
		
8	
00
	
9	 Expense deduction under IRC Section 179. 			
9	
00
	 10	 Interest on investment indebtedness. 			
10	
	 11	 All other items of expense that were not deducted in the computation of ordinary income or loss on			
00
	
	 Page 1 of U.S. Form 1065. See instructions. Identify:
	11	
00
	 12	 Add Lines 8 through 11. 			
12	
00
	 13	 Subtract Line 12 from Line 7. This amount is your total unmodified base income or loss. 		 	13	
IL-1065 (R-12/23)

IR

NS

DR

This form is authorized as outlined by the Illinois Income Tax Act. Disclosure of this
information is REQUIRED. Failure to provide information could result in a penalty.

Page 1 of 5

	

*32412232W*
	
	
	
	
	
	
	
	
	
	

Step 4: Figure your income or loss	
14	 Enter your unmodified base income or loss from Line 13.					
15	 State, municipal, and other interest income excluded from Line 14.	
				
16	 Illinois taxes deducted in arriving at Line 14. See instructions. 					
17	 Illinois Special Depreciation addition. Attach Form IL-4562.					
18	 Related-Party Expenses addition. Attach Schedule 80/20.					
19	 Distributive share of additions. Attach Schedule(s) K-1-P or K-1-T.	
				
20	 Guaranteed payments to partners from U.S. Form 1065.					
21	 The amount of loss distributable to a partner subject to replacement tax. Attach Schedule B.	
22	 Other additions. Attach Illinois Schedule M (for businesses).					
23	 Add Lines 14 through 22. This amount is your income or loss. 					

Step 5: Figure your base income or loss
24	 Interest income from U.S. Treasury or other exempt federal obligations. 	
	 25	 August 1,1969, valuation limitation amount. Attach Schedule F.	
	 26	 Personal service income or reasonable allowance for compensation

24	
25	

00

		 of partners. 	

26	

00

27	

00

28	
29	
30	
31	
32	
33	

00

	

	

	
	
	
	
	
	

34	
35	

00

00
00
00
00
00
00
00
00
00

00

28	 River Edge Redevelopment Zone Dividend subtraction.

		
Attach Schedule 1299-A.	
	

00

27	 Share of income distributable to a partner subject to replacement tax.

		
Attach Schedule B.	
	

14	
15	
16	
17	
18	
19	
20	
21	
22	
23	

29	
30	
31	
32	
33	
34	
35	

High Impact Business Dividend subtraction. Attach Schedule 1299-A.	
Illinois Special Depreciation subtraction. Attach Form IL-4562.	
Related-Party Expenses subtraction. Attach Schedule 80/20.	
Distributive share of subtractions. Attach Schedule(s) K-1-P or K-1-T.	
Other subtractions. Attach Schedule M (for businesses).	

Total subtractions. Add Lines 24 through 33.			
Base income or loss. Subtract Line 34 from Line 23. 			

00
00
00
00
00
00

A If the amount on Line 35 is derived inside Illinois only, check this box and enter the amount from Step 5,
Line 35 on Step 7, Line 47. You may not complete Step 6. (You must leave Step 6, Lines 36 through 46 blank.)	
	
If you are a unitary filer, do not check this box. Check the box on Line B and complete Step 6.
B 	If any portion of the amount on Line 35 is derived outside Illinois, or you are a unitary filer, check this box
and complete all lines of Step 6. (Do not leave Lines 40 through 42 blank.) See instructions. 			

Step 6: Figure your income allocable to Illinois (Complete only if you checked the box on Line B, above.)
	 36	 Nonbusiness income or loss. Attach Schedule NB.	
		
36	
	 37	 Business income or loss included in Line 35 from non-unitary partnerships, partnerships
		 included on a Schedule UB, S corporations, trusts, or estates. See instructions.			
37	
	 38	 Add Lines 36 and 37.	
		
38	
	 39	 Business income or loss. Subtract Line 38 from Line 35. 			
39	
00
	 40	 Total sales everywhere. This amount cannot be negative.	
40	
00
	 41	 Total sales inside Illinois. This amount cannot be negative.	
41	
	 42	 Apportionment factor. Divide Line 41 by Line 40. Round to six decimal places.	 42	
	 43	 Business income or loss apportionable to Illinois. Multiply Line 39 by Line 42.	
		
43	
	 44	 Nonbusiness income or loss allocable to Illinois. Attach Schedule NB.	
		
44	
	 45	 Business income or loss apportionable to Illinois from non-unitary partnerships, partnerships
		 included on a Schedule UB, S corporations, trusts, or estates. See instructions.			
45	
	 46	 Base income or loss allocable to Illinois. Add Lines 43 through 45. 			
46	
IL-1065 (R-12/23)

Printed by the authority of the state of Illinois - electronic only - one copy.

00
00
00
00

00
00
00
00

Page 2 of 5

*32412233W*
Step 7: Figure your net income
	 47	 Base income or net loss from Step 5, Line 35, or Step 6, Line 46.	
		
	 48	 Illinois net loss deduction. If Line 47 is zero or a negative amount, enter zero. Attach Schedule NLD. 	

47	
48	

00
00

		
Check this box and attach a detailed statement if you have merged losses.
	
	 49	 Income after NLD. Subtract Line 48 from Line 47. 		 	
49	
	 50	 Enter the amount from Step 5, Line 35.			
50	
	 51	 Divide Line 47 by Line 50. Round the result to six decimal places. This figure cannot be greater than one. 	 51	
	 52	 Exemption allowance. See instructions before completing.			
52	
	 53	 Net income. Subtract Line 52 from Line 49.			
53	

00
00
00
00

Step 8: Figure the taxes, withholding, and penalty you owe
	 54	 Replacement tax. Multiply Line 53 by 1.5% (.015). 	
		
54	
	 55	 Recapture of investment credits. Attach Schedule 4255.	
		
55	
	 56	 Replacement tax before investment credits. Add Lines 54 and 55. 		 	
56	
	 57	 Investment credits. Attach Form IL-477. 			
57	
	 58	 Net replacement tax. Subtract Line 57 from Line 56. If the amount is negative, enter zero.	58	
	59	 Withholding. See instructions.

00
00
00
00
00

		
a	 Pass-through withholding you owe on behalf of your members. Enter
00
			 the amount from Schedule B, Section A, Line 5. Attach Schedule B.	
59a	
00
		
b	 Investment partnership withholding. 	
59b	
		
Total Withholding. Add Lines 59a and 59b.		
	59	
00
	60	 Pass-through entity income. See instructions.
	
60	

00

	61	 Pass-through entity tax. Multiply Line 60 by 4.95% (.0495).		
	61	
	62	 Total net replacement tax, withholding, and pass-through entity tax 	you owe. Add Lines 58, 59, and 61.	
62	
	63	 Underpayment of estimated tax penalty from Form IL-2220. See instructions.			
63	
	64	
Total taxes, withholding, entity tax, and penalty. Add Lines 62 and 63. 			
64	
Step 9: Figure your refund or balance due
	65	 Payments. See instructions.
		
a	 Credits from previous overpayments.	
b	 Total payments made before the date this return is filed. 	
		
c	 Pass-through withholding reported to you.

65a	
65b	

00
00
00
00

00
00

			 Attach Schedule(s) K-1-P or K-1-T.	
65c	
d	 Illinois income tax withholding. Attach Form(s) W-2G.	
65d	
	 66	 Total payments. Add Lines 65a through 65d.			
	67	 Overpayment. If Line 66 is greater than Line 64, subtract Line 64 from Line 66. 		
	 68	 Amount to be credited forward. See instructions.	
	
		
Check this box and attach a detailed statement if this carryforward is going to a different FEIN.
	 69	 Refund. Subtract Line 68 from Line 67. This is the amount to be refunded.			

00
00

66	
	 67 	
	68

00
00
00

69	

00

71	 Tax Due. If Line 64 is greater than Line 66, subtract Line 66 from Line 64.	This is the amount you owe.	 71	

00

70	 Complete to direct deposit your refund

	

	Routing Number

Checking or

Savings	

	Account Number
	
	

Enter the amount of your payment on the top of Page 1 in the space provided.

Step 10: Sign below - Under penalties of perjury, I state that I have examined this return and, to the best of my knowledge, it is true, correct, and complete.
Check if the Department
Sign
(
)
may discuss this return with the
Here
Signature of partner

Paid
Preparer
Use Only

Print/Type paid preparer’s name

Date (mm/dd/yyyy)

Title

Paid preparer’s signature

paid preparer shown in this step.

Phone

Date (mm/dd/yyyy)

Check if 	
	self-employed Paid Preparer’s PTIN

Firm’s name

Firm’s FEIN

Firm’s address

Firm’s phone

(

)

If a payment is enclosed, mail your Form IL-1065 to:			
If a payment is not enclosed, mail your Form IL-1065 to:
	
ILLINOIS DEPARTMENT OF REVENUE				
ILLINOIS DEPARTMENT OF REVENUE
	PO BOX 19053							PO BOX 19031
	
SPRINGFIELD IL 62794-9053					
SPRINGFIELD IL 62794-9031

IL-1065 (R-12/23)

Page 3 of 5

	
	

Illinois Department of Revenue

2023 Schedule B

Year ending

*30812231W*

Partners’ or Shareholders’ Information

Month

Attach to your Form IL-1065 or Form IL-1120-ST.	

Enter your name as shown on your Form IL-1065 or Form IL-1120-ST.

Year

IL Attachment No. 1

Enter your federal employer identification number (FEIN).

Read this information first
•	

You must read the Schedule B instructions and complete Schedule(s) K-1-P and Schedule(s) K-1-P(3) before completing this
schedule.

•	

You must complete Section B of Schedule B and provide all the required information for your partners or shareholders before
completing Section A of Schedule B.
	 Failure to follow these instructions may delay the processing of your return or result in you receiving further correspondence from
the Illinois Department of Revenue. You may also be required to submit further information to support your filing.

Section A: Total members’ information (from Schedule(s) K-1-P and Schedule B, Section B)
Before completing this section you must first complete Schedule(s) K-1-P, Schedule(s) K-1-P(3) and Schedule B, Section B. You
will use the amounts from those schedules when completing this section.

Totals for resident and nonresident partners or shareholders (from Schedule(s) K-1-P and Schedule B, Section B)
1	 Enter the total of all nonbusiness income or loss you reported on Schedule(s) K-1-P for your members.
	

1

See instructions.	

2	 Enter the total of all income and replacement tax credits you reported on Schedule(s) K-1-P for your
	

2

members. See instructions.	

3	 Add the amounts shown on Schedule B, Section B, Line E for all partners or shareholders on all
	
	

pages for which you have checked the box indicating the entity is subject to Illinois replacement tax
or an ESOP. Enter the total here. See instructions.	

3

Totals for nonresident partners or shareholders only (from Schedule B, Section B)
4	 Enter the total pass-through withholding you reported on all pages of your Schedule B, Section B, Line J for your	
	

	 a.
	
	 b.
	
	c.
	
	 d.
	
	 e.

nonresident individual members. See instructions.	

4a

nonresident estate members. See instructions.	

4b

partnership and S corporation members. See instructions.	

4c

nonresident trust members. See instructions.	

4d

C corporation members. See instructions.	

4e

5 	 Add Line 4a through Line 4e. This is the total pass-through withholding you owe on behalf of all your
	
	
	
	

nonresident partners or shareholders. This amount should match the total amount from Schedule B,
Section B, Line J for all nonresident partners or shareholders on all pages. Enter the total here and
on Form IL-1065 (Form IL-1065-X), Line 59a, or Form IL-1120-ST (Form IL-1120-ST-X), Line 59.
See instructions.	

6	 Enter the total pass-through entity tax credit paid on all pages of Schedule B, Section B, Line K. 	

5	
6	

7	 Enter the total pass-through entity tax credit received and distributed on all pages of Schedule B,
	

7	

Section B, Line L. 	

Attach all pages of Schedule B, Section B behind this page.

Schedule B (R-12/23)

This form is authorized as outlined by the Illinois Income Tax Act. Disclosure of this
information is REQUIRED. Failure to provide information could result in a penalty.

Page 4 of 5

	

Illinois Department of Revenue	
	

			
		

	

2023 Schedule

B		

*30812232W*

		

Enter your name as shown on your Form IL-1065 or Form IL-1120-ST.	

							

		

Enter your federal employer identification number (FEIN).

Section B: Members’ information (See instructions before completing.)
			

Member 1		

Member 2		

A 	Name 		

	

	

C/O		

	

	

Address 1 		

	

	

Address 2		

	

	

City 		

	

	

State, ZIP		

	

B	 Partner or
	 Shareholder 		

Member 3	

		

		

C 	SSN/FEIN		

	

	

D 	Subject to Illinois
	
	

replacement tax
or an ESOP 		

		

		

	

E	 Member’s distributable
	
	

amount of base
income or loss 	

	

F 	 Excluded from

	pass-through
	withholding 		

		

		

	

G	 Share of Illinois

	 income subject to
	pass-through
	withholding 	

	

	

	withholding
	 before credits		

	

H	 Pass-through

I	 Distributable
	

share of credits 	

	

	

	

	

	 paid to
	members 		

	

J	 Pass-through
	withholding
	amount 	

K	 PTE tax credit

L 	 PTE tax credit
	 received and
	 distributed to
	members 	

			

									
Schedule B (R-12/23)

	

	
If you have more members than space provided, attach additional copies of this page as necessary.
Printed by the authority of the state of Illinois. - electronic only - one copy.

Reset

Print

Page 5 of 5