Ill. Admin. Code tit. 86, § 100.5240 - Claims for Credit of Overpayments
a) In general. If a taxpayer becomes a member
of a combined group during a common taxable year, any requested credit
carryforward shown on its separate return for the taxable period ending with
its entry into the combined group shall be credited against the combined
liability, and the designated agent shall claim this credit on the combined
return, for the taxable year in which the member joins the combined group. A
taxpayer that leaves a combined group may not claim a credit shown on a
combined return against its separate tax liability in a subsequent taxable
year. When an election is revoked, any claim for credit shown on the last
combined return shall be credited against the separate liabilities of the
electing members in the manner designated by the designated agent that is
satisfactory to the Department . The manner designated will be satisfactory to
the Department if it does not jeopardize the collection of any
liability.
b) Examples. The
provisions of this Section may be illustrated by the following examples:
1) Example 1. Corporation P and S-1 file a
combined return in 1985. S-2 becomes an eligible member on January 1, 1986.
S-2's 1985 overpayment of tax which it elected to be credited to 1986 shall be
utilized against the combined 1986 liability.
2) Example 2. The 1985 combined return of P,
S-1 and S-2 shows an overpayment which the designated agent elects as a credit
against its 1986 liability. If S-2 leaves the combined group during 1986 it
does not share in the overpayment credit.
Notes
Amended at 22 Ill. Reg. 19033, effective October 1, 1998
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