When is the return due?

The partnership return generally follows the federal partnership deadline, commonly March 15 for calendar-year filers. Confirm Illinois-specific guidance and extension procedures before filing.

Can the return be filed electronically?

Yes, Illinois accepts e-filed partnership returns through approved transmitters and e-file providers; confirm your provider supports partnership schedules and K-1 attachments.

Who must sign the return?

An authorized partner or officer of the partnership should sign the return. The signer must be authorized to certify the accuracy of the partnership’s tax filing.

Are notarization or witnesses required?

Notarization is not typically required for tax returns. Verify specific circumstances that might require additional authentication for associated legal documents.

What records should be retained?

Keep the filed return, K-1s, worksheets, payment receipts, and supporting documentation for at least three years; retain longer if underreporting or state rules require it.

What happens if partner TINs are incorrect?

Incorrect partner SSNs or EINs can trigger backup withholding, information return penalties, and processing delays. Use TIN verification to reduce this risk.

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Templates
Tax
Illinois Partnership Replacement Tax Return

Illinois Partnership Replacement Tax Return

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Illinois Department of Revenue 2009 Form IL-1065

Partnership Replacement Tax Return

Due on or before the 15th day of the 4th month following the close of the tax year.

If this return is not for calendar year 2009, write your fiscal tax year here.

Tax year beginning / , 2009, ending / / 20

Step 1: Identify your partnership

A Write your business name and mailing address.

If you have an address change, or this is a first return, check this box.

B Check the box if one of the following apply.

first return final return If final, write the date.

C If this is a final return because you sold this business, write the date sold and the new owner’s FEIN.

D Special Apportionment Formulas.

Financial organizations Transportation companies

E Check if you are classified as an investment partnership.

F Write your federal employer identification no. (FEIN).

G Check the box if you are a member of a unitary business group, and write the FEIN of the member filing the Schedule UB.

H Write the state and zip code where your accounting records are kept.

I Business income election to treat all nonbusiness income as business income.

J IRC § 761 election.

K If you have completed the following federal forms, check the box and attach them to this return.

Federal Form 8886 Federal Sch. M-3

Write the amount you are paying. $

Step 2: Figure your ordinary income or loss

1 Ordinary income or loss, or equivalent from federal Schedule K.

2 Net income or loss from all rental real estate activities.

3 Net income or loss from other rental activities.

4 Portfolio income or loss.

5 Net IRC Section 1231 gain or loss from involuntary conversions due to casualty and theft.

6 All other items of income or loss not included in Page 1 of U.S. Form 1065 or 1065-B. Identify:

7 Add Lines 1 through 6. This is your ordinary income or loss.

Step 3: Figure your unmodified base income or loss

8 Charitable contributions.

9 Expense deduction under IRC Section 179.

10 Interest on investment indebtedness.

11 Other expenses not deducted in ordinary income or loss. Identify:

12 Add Lines 8 through 11.

13 Subtract Line 12 from Line 7. This amount is your total unmodified base income or loss.

Step 4: Figure your income or loss

14 Write your unmodified base income from Line 13.

15 State, municipal, and other interest income excluded from Line 14.

16 Illinois replacement tax deducted in arriving at Line 14.

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 K-1-P or K-1-T.

20 Guaranteed payments to partners from U.S. Form 1065.

21 Amount of loss distributable to a partner subject to replacement tax. Attach Schedule B.

22 Other additions. Attach Illinois Schedule M.

23 Add Lines 14 through 22. This amount is your income or loss.

Step 5: Figure your Illinois base income or net loss

24 Interest income from U.S. Treasury obligations or other exempt federal obligations.

25 August 1, 1969, valuation limitation amount. Attach Schedule F.

26 Personal service income or reasonable allowance for compensation of partners.

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

28 Expenses incurred in producing certain federally tax-exempt income or federal credits.

29 Enterprise Zone or River Edge Redevelopment Zone Dividend subtraction. Attach Schedule 1299-A.

30 High Impact Business Dividend subtraction. Attach Schedule 1299-A.

31 Illinois Special Depreciation subtraction. Attach Form IL-4562.

32 Related-party expenses subtraction. Attach Schedule 80/20.

33 Distributive share of subtractions. Attach Schedule K-1-P or K-1-T.

34 Other subtractions. Attach Schedule M.

35 Total subtractions. Add Lines 24 through 34.

36 Base income or net loss. Subtract Line 35 from Line 23.

Step 6: Figure your income allocable to Illinois

37 Nonbusiness income or loss. Attach Schedule NB.

38 Non-unitary partnership business income or loss included in Line 36.

39 Add Lines 37 and 38.

40 Business income or loss. Subtract Line 39 from Line 36.

41 Total sales everywhere.

42 Total sales inside Illinois.

43 Apportionment factor. Divide Line 42 by Line 41.

44 Business income or loss apportionable to Illinois.

45 Nonbusiness income or loss allocable to Illinois. Attach Schedule NB.

46 Non-unitary partnership business income or loss apportionable to Illinois.

47 Base income or net loss allocable to Illinois.

Step 7: Figure your net income

48 Base income or net loss from Step 5, Line 36, or Step 6, Line 47.

49 Illinois net loss deduction. Attach Schedule NLD.

50 Income after NLD.

51 Write the amount from Step 5, Line 36.

52 Divide Line 48 by Line 51.

53 Exemption allowance. Multiply Line 52 by $1,000.

54 Net income.

Step 8: Figure your net replacement tax

55 Write the amount from Line 54.

56 Replacement tax. Multiply Line 55 by 1.5% (.015).

57 Recapture of investment credits. Attach Schedule 4255.

58 Replacement tax before investment credits.

59 Investment credits. Attach Form IL-477.

60 Net replacement tax.

Step 9: Figure your refund or balance due

61 Payments

a Credit from 2008 overpayment.

b Form IL-505-B (extension) payment.

c Pass-through entity payments.

62 Total payments.

63 Overpayment.

64 Amount to be credited to 2010.

65 Refund.

66 Tax Due.

Step 10: Sign here

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.

Signature of partner

Date

Title

Phone

Signature of preparer

Date

Preparer’s Social Security number or firm’s FEIN

Preparer firm’s name (or yours, if self-employed)

Address

Phone

Schedule B - Partners’ or Shareholders’ Identification

Year ending

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

Write your federal employer identification number (FEIN).

Step 1: Provide the following information

1 Write the amount of base income or net loss from your Form IL-1065 or Form IL-1120-ST, Line 48.

2 Write the apportionment factor from your Form IL-1065 or Form IL-1120-ST, Line 43.

Step 2: Identify your partners or shareholders

Name and Address	SSN or FEIN	Partner or Shareholder type	Total amount of base income distributable	Member subject to Illinois replacement tax	Pass-through entity payment amount	Excluded from pass-through entity payments

7 Add the amounts shown in Column D for partners or shareholders for which you have entered a check mark in Column E. Write the total here.

IL Attachment no. 1

What the Illinois Partnership Replacement Tax Return Is

The Illinois Partnership Replacement Tax Return documents a partnership’s Illinois tax obligations that arise from state-level replacement tax rules and from allocable income subject to Illinois taxation. It captures partnership identifiers, income and loss allocations to partners, credits, payments, and reconciliations required by the Illinois Department of Revenue for partnerships and pass-through entities doing business or deriving income from Illinois sources. The filing ensures partner-level reporting and supports partner K-1 information used for individual or corporate Illinois returns.

Why this return matters for partnerships and partners

Filing the Illinois Partnership Replacement Tax Return establishes statutory compliance, prevents late-filing penalties and interest, and documents partner allocations needed for accurate state tax reporting.

Who typically completes this Illinois tax return

Typical filers include partnership managers, tax preparers, and payroll or finance teams responsible for state tax compliance.

General partners and managing members preparing state allocations and payments.
CPAs and tax firms preparing partnership returns and partner K-1s for Illinois filing.
Corporate partners that receive distributive shares requiring Illinois attribution and withholding.

Outside accountants or in-house tax staff complete the form to allocate state tax liability and generate partner reporting schedules.

Core sections included on the Illinois Partnership Replacement Tax Return

A professional return includes identifying details, income reconciliation, partner allocation schedules, credit and payment entries, required attachments, and signature/declaration statements to meet Illinois Department of Revenue requirements.

Identification

Partnership name, federal EIN, business address, and Illinois account numbers to tie the return to the correct taxpayer record.

Tax Year

Reporting period and tax year designation; essential for matching returns to partner K-1 reporting and extension status.

Income Reconciliation

Total partnership income, adjustments, and Illinois-source income lines used to compute replacement tax base and partner allocations.

Partner Allocations

Schedules listing each partner’s distributive share, nonresident allocations, and any withholding for nonresident partners.

Credits & Payments

Lines to claim state tax credits, estimated tax payments, withholding credits, and computation of balance due or refund.

Declaration & Signature

Authorized signer, title, date, and declaration attesting to the accuracy of the return and supporting schedules.

Step-by-step: complete and submit the Illinois Partnership Replacement Tax Return

Follow these sequential actions to prepare the return accurately and avoid common processing issues.

01

Gather documents: Collect federal Form 1065, partner K-1s, payroll and withholding records, and prior Illinois filings.
02

Complete identification: Enter partnership name, EIN, tax year, and Illinois account numbers exactly as registered.
03

Calculate allocations: Compute Illinois-source income and allocate distributive shares to each partner per state rules.
04

File and pay: Submit return electronically or by mail, and remit any balance due using approved Illinois Department of Revenue payment methods.

Where and how to file or send the completed return

Partnerships can e-file through Illinois-approved providers, submit paper returns by mail, or use tax professionals to transmit filings on their behalf.

Illinois e-file: Use an approved e-file vendor or the Illinois DOR portal when available.
Mail submission: Send paper returns to the Illinois Department of Revenue address specified in the instructions.
Third-party filing: Authorized tax preparers can file electronically under their transmitter ID.
Record retention: Retain copies of filed returns, payment confirmations, and K-1 schedules for the required retention period.

Configuring an online workflow for this Illinois return

Set up your e-filing workflow with clear field mappings, signer roles, authentication, and attachments to automate partner reporting.

E-file provider selection	Choose an Illinois-approved transmitter that supports partnership returns and K-1 schedules.
Signer authentication	Require the authorized partner or officer to sign with verified email or multi-factor authentication.
Attach schedules	Include partner K-1s, apportionment worksheets, and any credits documentation as PDF attachments.
Automate calculations	Use formula fields or calculation scripts to reduce manual entry and arithmetic errors.
Reminders & audit trail	Enable signer reminders and maintain a tamper-evident audit trail for compliance and recordkeeping.

Digital filing and eSignature technical considerations

Choose a platform that preserves audit logs, supports multi-factor signer authentication, and stores signed records in secure, exportable formats for audit and retention needs.

File formats: PDF, DOCX, and structured data files supported for attachments.
Integrations: Integrates with NetSuite, Microsoft 365, Google Workspace, Salesforce, and Box.
Compliance: Supports ESIGN and UETA-compliant audit trails and secure transmission.

Key filing deadlines and timing considerations

Observe federal and Illinois due dates to avoid penalties; partnership returns typically follow federal partnership cycles.

Regular due date:

March 15 for calendar-year partnerships; aligns with federal Form 1065 timing.

Extension deadline:

Extensions generally follow federal extension rules; use Illinois guidance to confirm extended due dates.

Payment due date:

Tax payments are due with the return unless estimated payments were made earlier.

K-1 distribution:

Provide partners with their Illinois K-1 or allocation statement by the partnership due date.

Electronic filing cutoff:

E-file availability may close after the deadline; allow time for transmitter processing.

Penalties and risks for incorrect or late filings

Late-filing penalty: Assessed interest and state penalties for untimely returns

Underpayment interest: Interest accrues on unpaid tax from due date

Information return fines: Penalties for incorrect partner reporting or missing K-1s

Backup withholding: Triggered by missing or incorrect TINs

Intentional disregard: Higher fines for deliberate failure to file or inaccurate reports

Audit exposure: Inaccurate allocations increase audit risk and adjustment exposure

Practical tips to prepare the return accurately and efficiently

Adopt standardized templates, perform reconciliations, and maintain supporting documentation to reduce errors and audit exposure.

Reconcile to federal return

Compare Illinois lines to federal Form 1065 and reconciliations; document adjustments and retain worksheets to support any state differences.

Validate partner TINs

Confirm each partner’s SSN or EIN using IRS TIN matching or client-provided verification to avoid backup withholding penalties.

Use templates and formulas

Leverage automated calculations and conditional fields to reduce arithmetic errors and ensure consistent partner allocation methodology.

Keep contemporaneous records

Store signed returns, payment receipts, and K-1 schedules in a secure, tamper-evident archive for the full retention period.

How the Illinois Partnership Replacement Tax Return differs from federal partnership filing

Compare top-line obligations and filing elements to understand state vs federal roles when preparing partnership returns.

Document	Federal Form 1065	Illinois Partnership Replacement Tax Return
Primary obligation	report partnership income	allocate and report illinois tax liability
Due date	march 15	march 15 (state alignment typical)
Signatory	partner/authorized representative	partnership authorized signer
State tax effect	federal reporting only	creates state-level tax allocations and withholding

eSignature vendor pricing and feature comparison relevant to tax filings

Compare starting prices and core features for common eSignature vendors; signNow is listed first per comparison conventions.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	Yes, 7-day trial	No	No	Yes, limited	Yes, limited
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Frequently asked questions about the Illinois Partnership Replacement Tax Return

Answers to common questions on filing, deadlines, signatures, and recordkeeping when preparing the Illinois Partnership Replacement Tax Return.

Need help? Contact support

When is the return due?
The partnership return generally follows the federal partnership deadline, commonly March 15 for calendar-year filers. Confirm Illinois-specific guidance and extension procedures before filing.
Can the return be filed electronically?
Yes, Illinois accepts e-filed partnership returns through approved transmitters and e-file providers; confirm your provider supports partnership schedules and K-1 attachments.
Who must sign the return?
An authorized partner or officer of the partnership should sign the return. The signer must be authorized to certify the accuracy of the partnership’s tax filing.
Are notarization or witnesses required?
Notarization is not typically required for tax returns. Verify specific circumstances that might require additional authentication for associated legal documents.
What records should be retained?
Keep the filed return, K-1s, worksheets, payment receipts, and supporting documentation for at least three years; retain longer if underreporting or state rules require it.
What happens if partner TINs are incorrect?
Incorrect partner SSNs or EINs can trigger backup withholding, information return penalties, and processing delays. Use TIN verification to reduce this risk.

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