1120-IL: Preparing a unitary return with C Corporation and pass-through members

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

  1. Create and complete each member client and add Illinois to each member.

    Note: Apportionment data entry must be completed for each member client, even if the client is 100 percent in-state. The same apportionment method must be used by the parent client and applicable subsidiary clients. 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 button in 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. With the federal consolidated client open mark the Designated Agent checkbox in File > Client Properties > Illinois tab under the Unitary heading. Print preview the return.

  4. Open each S Corporation member and enter the Designated Agent’s EIN in the Unitary return group box in File > Client Properties > Illinois tab. Print preview each S Corporation member return after adding the designated agent’s EIN. This stores off the member’s data for use in the designated agent client.

    Note: Data is not shared between 1120-IL and 1065-IL.

  5. Open federal consolidated client and accept  the shared data from each S Corporation member. Complete all necessary information in the following input screens: ILAffil, ILComb, ILUMemb, ILUInc, ILUAdj, and ILUAppt.

  6. Print and review the Illinois unitary group tax return.

  7. S Corporation and Partnership members must file a copy of the designated agent’s Schedule UB with their separate Forms IL-1120-ST or IL-1065 returns with combined amounts. Use Screen ILUMod in each member client to enter the combined additions and subtractions for the group.

Related topic: 1120 Illinois frequently asked questions

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