IL-1000-E: Certificate of Exemption for Pass-through Withholding Payments (2024)
Illinois · Illinois DOR · Used for tax years 2024
Form IL-1000-E is an Illinois certificate for a nonindividual owner electing to make its own tax payments on income from a pass-through entity. It identifies the entity and owner and certifies that the owner will file Illinois income tax returns and timely pay all Illinois income
Who files this form
Form IL-1000-E should be completed by an owner, such as a partner, shareholder, or beneficiary, that elects to make its own tax payments on income from a partnership, S corporation, or trust.
Individuals may not make this exemption election. The form lists these owner business types: corporation, Subchapter S corporation, partnership, trust, and estate.
What you'll need
Have the following information ready to complete the certificate:
- The pass-through entity’s name, mailing address, phone number, and federal employer identification number (FEIN).
- The owner’s name, mailing address, phone number, FEIN, and business type.
- The signature of the owner, officer, fiduciary, or authorized representative, along with the date, printed name, and title.
How to file
- Identify the pass-through entity in Step 1.
- Identify the owner and check its business type in Step 2.
- Have the owner, officer, fiduciary, or authorized representative sign Step 3.
- Submit the completed, signed certificate to the pass-through entity. The entity must keep it in its files.
By signing, you certify that the owner will file all Illinois income tax returns, pay all Illinois income taxes due on time, and accept Illinois personal jurisdiction for collecting income taxes due on income from the listed entity.
Submit the certificate only once. It does not need to be resubmitted annually. Do not send it to the Illinois Department of Revenue unless the department specifically requests it.
Common mistakes
- Making the election as an individual. Individuals may not make this exemption election.
- Sending the certificate to the department without a request. The pass-through entity must keep it unless the Illinois Department of Revenue specifically requests it.
- Submitting a new certificate every year. The form only needs to be completed, signed, and submitted once.
- Accepting an incomplete or unsigned certificate. The pass-through entity must make sure the certificate is completed and signed by the owner, officer, fiduciary, or authorized representative. Failure to provide required information could result in a penalty.
- Using it to claim an investment partnership withholding exemption. Form IL-1000-E does not exempt investment partnerships from investment partnership withholding.
- Ignoring a revocation notice. The certificate remains valid for 60 days after the notification date. After that, the entity must begin withholding on income distributable to the owner. It may not accept another certificate from that owner until the department notifies it.
Questions people ask
Can an individual use this exemption election?
No. Individuals may not make the exemption election.
Do I need to submit a new certificate each year?
No. Complete, sign, and submit the certificate to the pass-through entity only once. Annual resubmission is not required.
Who keeps the completed certificate?
The pass-through entity must keep it in its files. Do not send it to the Illinois Department of Revenue unless the department specifically requests it.
Does this form exempt investment partnerships from investment partnership withholding?
No. The form specifically states that it does not provide that exemption.