IL-1065: Partnership Replacement Tax Return (2024)
Illinois · Illinois DOR · Used for tax years 2024
Form IL-1065 is the 2024 Illinois Partnership Replacement Tax Return. It reports a partnership’s income or loss, Illinois adjustments, replacement tax, withholding, and pass-through entity tax, and calculates a refund or balance due.
What you'll need
Have your partnership’s legal name, mailing address, federal employer identification number (FEIN), NAICS code, and accounting-records location ready. The return uses income, expense, and guaranteed-payment amounts from federal Form 1065 and federal Schedule K.
Depending on the entries you report, the form calls for attachments such as:
- Schedule B for partner information and withholding, plus Schedule(s) K-1-P or K-1-T for reported distributive shares or pass-through withholding.
- Form IL-4562 for Illinois special depreciation, Schedule 80/20 for related-party expenses, and Illinois Schedule M for other additions or subtractions.
- Schedule NB for nonbusiness income, Schedule NLD for an Illinois net loss deduction, and Schedule 1299-A for the listed dividend subtractions.
- Schedule 4255 for investment-credit recapture and Form IL-477 for investment credits.
- Form(s) W-2G for Illinois income tax withholding reported on Line 65d.
- Form IL-2220 if you are paying PTE tax and annualized your income on that form.
Investment partnerships should attach documentation supporting their investment-partnership status. If you enclose a payment, attach it with Form IL-1065-V.
How to file
Complete the partnership identification, income, tax, and payment sections that apply. Enter the payment amount at the top of Page 1 and attach any required schedules. A partner signs and dates the return in Step 11.
If a payment is enclosed, mail the return to:
ILLINOIS DEPARTMENT OF REVENUE
PO BOX 19053
SPRINGFIELD IL 62794-9053
Attach your payment and Form IL-1065-V where indicated on Page 1.
If a payment is not enclosed, mail the return to:
ILLINOIS DEPARTMENT OF REVENUE
PO BOX 19031
SPRINGFIELD IL 62794-9031
Common mistakes
- Completing Schedule B out of order. Read its instructions and complete Schedule(s) K-1-P and Schedule(s) K-1-P(3) or K-1-P(4) first. Complete Schedule B, Section B before Section A. The form warns that not following these directions may delay processing or lead to requests for more information.
- Using the wrong income-allocation path. If Line 35 is derived only inside Illinois and you are not a unitary filer, check Box A, carry Line 35 to Line 47, and leave Step 6 blank. Unitary filers must check Box B and complete Step 6.
- Leaving required allocation entries blank. If Box B applies, complete all lines of Step 6, including Lines 40 through 42. Sales amounts on Lines 40 and 41 cannot be negative.
- Completing Step 8 for an investment partnership. The form says investment partnerships must skip that section.
- Omitting required information. The form warns that failure to provide required information could result in a penalty.
Questions people ask
Which tax years does the 2024 form cover?
This version is for tax years ending on or after December 31, 2024, and before December 31, 2025. If your return is not for calendar year 2024, enter your fiscal tax year’s beginning and ending dates on Page 1.
Where can I find the filing due date?
The form directs you to “When should I file?” in the Form IL-1065 instructions. No due date is printed in the supplied form, and those instructions were not provided.
Can I have my refund deposited directly into a bank account?
Yes. Complete Line 70 with the routing number and account number, and select checking or savings.
What if Schedule B does not have enough space for all partners?
Attach additional copies of Schedule B, Section B as needed. Attach all Section B pages behind Section A.
What do I enter for a final return?
Check the final-return box and enter the termination date. If it is a final return because you sold the business, also enter the sale date and the new owner’s FEIN.