Under Section 506(b) of Illinois Income Tax Act, an Illinois taxpayer must report any change in his or her federal income tax return within 120 days of change having been agreed to or finally determined for federal income tax purposes. After an IRS auditor conducted audit of Petitioners’ partnership, Petitioner signed settlement agreement with IRS on behalf of one of the partner LLPs in partnership, which adjusted the loss on the partnership’s 2002 federal return. Settlement agreement showed that Petitioner, acting on behalf of partner LLP, agreed to a change in amount of loss reported on returns, and adjustment passed through LLP to Petitioners’ personal income tax return. Reduction in loss was a final determination of amount of loss partnership suffered in 2002. Independent Tax Tribunal properly awarded summary judgment for Department of Revenue. (HOWSE and BURKE, concurring.)
Illinois Appellate Court
Civil Court
Corporate Tax