Illinois DOR Releases Revised Instructions for Form IL-1120-ST, Small Business Corporation Replacement Tax Return

The Illinois Department of Revenue April 1 issued revised instructions for Form IL-1120-ST, Small Business Corporation Replacement Tax Return, for individual income, corporate income, and trust income tax purposes. Taxpayers can use the form for a tax year ending on or after Dec. 31, 2021, and before Dec. 31, 2022. The instructions include: 1) for taxable years ending on or after Dec. 31, 2021, and beginning before Jan. 1, 2026, an S corporation may pay pass-through entity (PTE) tax equal to 4.95 percent of a taxpayer’s net income for the taxable year; 2) entities electing to pay the PTE tax ...