Form IL-990-T

What Is Form IL 990 T

Form IL 990 T is the official tax document used by trusts, estates, and specific other organizations in the state of Illinois to report and pay income taxes on unrelated business income. This form is tailored to identify the taxable income generated from business activities that are not directly related to the organization's exempt purpose. It ensures that all entities contribute somewhat to state revenue, regardless of their tax-exempt status for other activities.

When to Use Illinois Form IL 990 T

This essential document has specific use cases, making it applicable in various situations, including:

• When a non-profit engages in revenue-generating activities outside its exempt purposes.
• For income generated through business activities unrelated to the primary purpose of the trust or estate.
• If an institution of higher education operates a business to generate income beyond its educational remit.
• Such as pension, profit-sharing, or stock bonus plans, where business income does not relate to the exempt functions.

These examples underscore the broad applicability of the form, ensuring organizations adhere to tax obligations stemming from non-exempt income activities.

How to Fill Out Form IL 990 T Instructions

Step 1: Identification Information

Begin by entering the organization's name and address in the designated fields at the top.

Include the organization's Federal Employer Identification Number (FEIN) and the Illinois Account ID, if applicable.

Step 2: Accounting Period

Indicate the tax year for which you are filing, specifying the beginning and end dates of the fiscal year if the organization operates on a fiscal year basis.

Step 3: Exempt Organization Information

Mark whether the organization is exempt under section 501, noting the specific subsection if applicable.

If the organization is filing for a different exemption status, provide the necessary details as requested.

Step 4: Income and Deductions

Report the gross unrelated business income before any deductions. This may include income from business activities, rental income, and certain other types of income not directly related to the organization's exempt purpose.

Deduct the expenses directly connected with producing the income, such as the cost of goods sold, salaries and wages, rent, utilities, and other allowable expenses. Ensure that these deductions are listed separately as required.

Step 5: Tax Calculation

Calculate the net unrelated business taxable income by subtracting the total deductions from the total income.

Compute the amount of tax owed based on the applicable state tax rates. The form may include a tax rate schedule to assist in this calculation.

Step 6: Payments and Credits

Enter the organization's estimated tax payments for the tax year.

List any tax credits the organization can claim, following the instructions for specific lines that apply to particular credits.

Step 7: Signatures

The form must be signed and dated by an authorized organization officer, such as the treasurer or president.

If prepared by a paid preparer other than the organization's employee, the preparer's information and signature must also be included in the designated section.

When to File Illinois Form IL 990 T

Form IL 990 T must be filed by the 15th day of the 5th month following the end of the organization's tax year. For instance, if the tax year ends on December 31, the form is due by May 15 of the following year. It's crucial to adhere to this deadline to avoid potential late fees or penalties. Organizations should plan accordingly, particularly if gathering necessary financial information takes time, to ensure timely filing.