Illinois Administrative Code
Title 86 - REVENUE
Part 100 - INCOME TAX
Subpart N - ACCOUNTING
Section 100.4100 - Taxable Years (IITA Section 401)
Universal Citation: 86 IL Admin Code ยง 100.4100
Current through Register Vol. 48, No. 38, September 20, 2024
a) The term "taxable year" means the calendar year, or the fiscal year ending during such calendar year, upon the basis of which the base income is computed under the IITA. "Taxable year" means, in the case of a return made for a fractional part of a year under the provisions of the IITA, the period for which that return is made. [IITA Section 1501(a)(23)]
b) Except as provided in this Section, for all purposes of the IITA, the taxable year of a person is the same as the taxable year used by that person for federal income tax purposes. [IITA Section 401(a)]
1)
The taxable year of any person
required to file a return under the IITA but not under the Internal Revenue
Code is the taxpayer's annual accounting period if it is a fiscal or calendar
year, and in all other cases, is the calendar year. [IITA Section
401(a)] The taxable year of a taxpayer that keeps no books or that does not
have an annual accounting period is the calendar year.
2)
If the taxable year of a person is
changed for federal income tax purposes, the taxable year of that person for
purposes of the IITA is also changed. [IITA Section 401(b)]
c) Short Taxable Years
1)
In the case of a taxable year for
a period of less than 12 months, the standard exemption allowed under IITA
Section 204 is prorated on the basis of the number of days in that year to
365. [IITA Section 401(b)]
2) Change in the Taxpayer's Membership in a
Unitary Business Group. If a taxpayer becomes a member of a unitary business
group during the taxpayer's taxable year, or if a member of a unitary business
group ceases to be a member during the taxpayer's taxable year, and the
taxpayer's taxable year does not terminate at the time of the change for
federal income tax purposes, the taxpayer's taxable year that includes the
change is not a short taxable year. However, for that taxable year, the
taxpayer determines its income, deductions, apportionment factors, and other
tax items separately for the portions of that taxable year before and after the
change, so that these tax items may properly be reported for each portion of
that taxable year.
A) If the taxpayer is a
member of a combined group before the change and of a different combined group
after the change, the tax items for each portion of the taxable year are
combined with the tax items of the appropriate combined group for each portion.
(See Section
100.5265(f).)
B) If a taxpayer is a member of a combined
group for only one portion of the taxable year, the tax items for that portion
of the taxable year are combined with the tax items of the combined group as
provided in Section
100.5265(f)
and the tax items for the other portion are reported on a separate return of
the taxpayer for the taxable year.
C) If the taxpayer is not a member of a
combined group for either portion of the taxable year, the tax items for the
entire taxable year are reported on a single return of the taxpayer for the
taxable year, but the business income for each portion of that taxable year is
apportioned according to the taxpayer's separate or unitary status for that
portion of the year.
d) 52-53 Week Taxable Years
1)
26 USC
441(f)(1) permits a taxpayer
to elect to use a 52-53 week taxable year; that is, an annual period that
varies from 52 to 53 weeks and ends always on the same day of the week and ends
always:
A) on whatever date that same day of
the week last occurs in a calendar month; or
B) on whatever date that same day of the week
falls that is nearest to the last day of a calendar month.
2) In any case in which the effective date or
the applicability of any provision of the IITA or a regulation under this Part
is expressed in terms of taxable years beginning, including, or ending with
reference to a specified date that is the first or last day of a month, then,
for purposes of that provision, a 52-53 week taxable year is treated:
A) as beginning with the first day of the
calendar month beginning nearest to the first day of that taxable year;
or
B) as ending with the last day
of the calendar month ending nearest to the last day of that taxable year, as
the case may be. (See
26 USC
441(f)(2)(A).)
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