Illinois ~ Corporate, Personal Income Taxes: Amendments to Sales Factor, Alternative Apportionment Regulations Proposed

CCH Tax Day Report

The Illinois Department of Revenue is seeking comments on proposed amendments to regulations on the apportionment of business income to Illinois by nonresident corporations, partnerships, and individuals. The proposed amendments reflect current law on the determination of the sales factor using market-based sourcing rules, including the sourcing of receipts from the sales, licensing, and other disposition of patents, copyrights, trademarks, and similar items of intangible property. The rule changes also address occasional sales and taxpayer petitions to use alternative apportionment methods. Finally, the amendments propose to eliminate the “double throwback” rule for sales in which neither the origin nor the destination of the sale is in Illinois, and the taxpayer is taxable in neither the state of origin nor the state of destination.

86 Ill. Adm. Code Sec. 100.3370

86 Ill. Adm. Code Secs. 100.3380, and 100.3390

86 Ill. Adm. Code Secs. 100.3380, and 100.3390, Illinois Department of Revenue, first comment period for ends January 17, 2017; 86 Ill. Adm. Code Sec. 100.3370, first comment period ends February 13, 2017

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