Preparing Illinois Unitary Business Group income tax returns consisting of C Corporation and S Corporation or Partnership members (1120)

Alerts and notices

Use this procedure to ensure the correct preparation of Illinois Unitary Business Group income tax returns.

If the unitary group consists of both C Corporation members and S Corporation or Partnership members, use the following procedure to compete the unitary return.

  1. Add Illinois to all members of the unitary group. Complete all data entry for these member clients. Each member’s state return should be complete and correct before proceeding to the next step.

    Note: Apportionment data entry must be completed for each member client, even if the client is 100 percent in-state. Apportionment data entry is accessed through View > Apportionment.

  2. Create a federal consolidated client by selecting all C Corporation member clients in the Advanced Properties dialog (accessed via File > Client Properties). When selecting the parent of the combined group, Illinois’s designated agent should be selected as the "Parent."

    Note: When adding Illinois to a consolidated federal client, the state automatically defaults to being a combined return.

  3. Open the federal consolidated client return, and mark the Designated agent checkbox in the File > Client Properties > Illinois tab. A Unitary input screen folder is now available in the list of Illinois input screen folders.
  4. In each S Corporation member return, choose the File > Client Properties > Illinois tab, and enter the EIN of the designated agent client in the Designated agent EIN field.
  5. Print preview each S Corporation member return after adding the designated agent’s EIN to prepare each member’s state return information to share data into the designated agent’s return.

    Note: UltraTax/1120-IL does not share data from 1065-IL.

  6. Open the federal consolidated client return and navigate to the Illinois input screens. The Data Sharing – Pending Updates dialog opens listing each member client available for data share.

    Note: A client will not be listed in the Data Sharing dialog if you did not perform steps 4 and 5 above or if the member client does not have a numeric EIN entered in the Federal tab in View > Client Properties.

  7. Select the first member and press the Add Unit button at the bottom of the Data Sharing dialog. You will now see a list of the data to be imported into the federal consolidated client. Click the Accept and import new source data option and press the Accept button at the bottom of the dialog. Repeat this step for each member of the unitary group.

    Note: If the Unitary Business Group return contains members not available for data share, you can add a unit of the Unitary input screens by selecting Edit > Add Unit in Screen ILUMemb.

  8. Click the Illinois Unitary input screen folder. There is now a separate unit for each member client with shared data in step 7.
  9. Review each unit of the Unitary input screens and complete all necessary information in the following input screens: ILAffil, ILComb, ILUMemb, ILUInc, ILUAdj, and ILUAppt.
  10. Print and review the Illinois Unitary Business Group income tax return.
  11. S Corporation and Partnership members must file a copy of the designated agent’s Schedule UB with their separate Forms IL-1120-ST and IL-1065 with combined amounts. Enter the combined additions and subtractions for the group on Screen ILUMod in each member client return.