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.......

The reference you cited dates from 1997. The elimination of the requirement for investment clubs to file in IL dates to (tax year) 2005. Read the form instructions and you will see that investment clubs are specifically exempt.

 

Ira Smilovitz