Illinois Disclosure Requirements for Reportable Transactions

Participant Requirements

If you have Illinois nexus and are, or were, required to file federal Form 8886 (or a similar form prescribed by the IRS) with your federal income tax return, you are required to submit a copy of the federal form to the Illinois Department of Revenue for each taxable year that you are required to make a federal disclosure.

Disclosure of participation in a reportable transaction (including listed transactions) must be made by the due date (including extensions) of the Illinois income tax return. If the federal due date is later than this date, the disclosure must be made no later than the federal due date.

Illinois requires that you submit two copies of the form used to disclose the transaction to the IRS.

The first copy of the federal disclosure statement (Form 8886 or a similar form prescribed by the IRS such as the Schedule M-3, or Form 8271) must be sent to the following address:

ILLINOIS DEPARTMENT OF REVENUE
PO BOX 19029
SPRINGFIELD IL 62794-9029

The second copy must be attached to your Illinois income tax return (Form IL-1040, Form IL-1120, Form IL-1065, Form IL-1120-ST, Form IL-1041, Form IL-990-T, or Form IL-1023-C) for the tax year that the IRS disclosure was required. Mail the second copy and your Illinois income tax return to the address shown on your return. Do not mail the second copy and your Illinois income tax return to the address listed above.

• If any member of the combined group is required to file a disclosure statement for a taxable year, a copy must be attached to the Illinois combined income tax return for that taxable year. 
• If any taxpayer is required to file a disclosure statement with its federal return for a taxable year in which it is a member of a combined group and the disclosure is related to a taxable year for which it was not a member of the combined group, a copy should be filed with the Illinois combined income tax return, and should include a statement from the designated agent indicating the year to which the disclosure relates and that it is for a separate return year of that member. 
• If you are required to make a disclosure with respect to a reportable transaction engaged in during the taxable year by a partnership or Subchapter S corporation in which you are a partner or shareholder, the partnership or S corporation is permitted to make the disclosure on your behalf by submitting the disclosure statement with a timely filed
  • Illinois income tax return (for tax years ending on or after December 31, 2014); or
  • Illinois composite return (for tax years ending before December 31, 2014). 

  However, it is ultimately your obligation to make the disclosure. If you choose to make the disclosure directly, you may mail the federal disclosure form to the Department.

• If you have Illinois nexus but no return is due under IITA Section 502, then only one copy of the disclosure statement is to be mailed to the address above. 

Material Advisor Requirements

If you are a material advisor required to file a federal Form 8918, Material Advisor Disclosure Statement, (or a similar form prescribed by the IRS such as Form 8264) with respect to a reportable transaction having nexus with Illinois, you are required to submit a copy of that federal form to the Illinois Department of Revenue.

For federal income tax purposes, the IRS requires material advisors to make disclosures by the last day of the month following the end of the applicable calendar quarter in which the advisor became a material advisor for the reportable transaction. Illinois requires that the copy of the federal form be filed with the Department on the same date as the federal filing.  This means both the federal and Illinois due dates are January 31, April 30, July 31, or October 31.

A copy of the federal form (Form 8918 or similar form prescribed by the IRS) must be furnished to the Department at the following address:

ILLINOIS DEPARTMENT OF REVENUE
PO BOX 19029
SPRINGFIELD IL 62794-9029

Material advisors are also required to maintain a list under IRC Section 6112 identifying each taxpayer for whom the person provided services as a material advisor with respect to a reportable transaction. A duplicate copy of the investor list provided to the IRS must be provided to Illinois when the reportable transaction has nexus in Illinois. It is to be furnished not later than the following dates

• the same date as it is required to be furnished to the IRS, or
• the date that is specified in a written request by the Department.