club_cafe: State return for Illinois

iras1 on

In a message dated 2/1/2007 1:25:07 P.M. Eastern Standard Time, kcmui@bivio.com writes:

I read somewhere in this forum that the state of Illinois does not require partnerships of investment club to file the IL-1065.
Is this still true for the current 2006 year return ??
Any help in this will be appreciated.

I believe that is still true. It should be mentioned in the instructions to the IL-1065.

Ira Smilovitz

King C Mui on

But according to this GIL - general information letter that I found in the ILL DEPT OF REVENUE website.

http://www.revenue.state.il.us/legalinformation/letter/rulings/it/1997/ig970034.pdf

It is a long ruling, but it simply states that if a Federal 1065 partnership return is filed, then a partnership is require to file a IL-1065 return.

Only instance that a IL-1065 is not require is when the investment club makes the section 761(a) election, where by the investment club will not be required to file the federal 1065 return. and then will not be treated as a partnership for Illinois income taxes purposes.

Now I am really confused.......

Rip West on

Only instance that a IL-1065 is not require is when the investment club makes the section 761(a) election, where by the investment club will not be required to file the federal 1065 return. and then will not be treated as a partnership for Illinois income taxes purposes.

I don't know about the necessity to file an Illinios income tax, but I do know something about the 761 election not to be treated as a partnership. The IRS has determined that this election was never meant for investment clubs, so it is not something that you can do. Clubs that have filed for a 761 election in prior years and that have not filed federal returns since then, are advised that they should start filing.

Rip West
Saint Paul, MN

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