Schedule 80/20: Related-Party Expenses (2024)
Illinois · Illinois DOR · Used for tax years 2024
Illinois Schedule 80/20 reports related-party interest, dividends, intangible expenses, and intangible income involving affiliated companies. It calculates addition and subtraction modifications and is attached to Form IL-1120, IL-1120-ST, IL-1065, or IL-1041.
Who files this form
Schedule 80/20 reports related-party expenses and attaches to Form IL-1120, IL-1120-ST, IL-1065, or IL-1041.
The form says all taxpayers may complete Step 2. All taxpayers may complete Steps 3 and 4 if an addition modification was figured in Step 2. It does not state a separate filing requirement based on an income or expense threshold.
What you'll need
Have the following information available to complete the schedule:
- Your name as shown on your Illinois return, your federal employer identification number (FEIN), and your tax year ending month and year.
- Each affiliated company's name and FEIN, and whether it is newly added.
- Interest and intangible expenses paid to each affiliated company, including amounts exempt from add-back.
- Dividends, interest, and intangible income received from each affiliated company.
If you are an affiliated company completing Lines 16 through 22, you also need the paying U.S. company's name and FEIN, the interest and intangible income received from it, and the amounts paid to you shown on its Schedule 80/20, Lines 5 and 8.
How to file
Attach Schedule 80/20 to your Form IL-1120, IL-1120-ST, IL-1065, or IL-1041.
- Identify your affiliated companies in Step 1.
- Figure your addition modifications in Step 2.
- If an addition modification was figured in Step 2, use Steps 3 and 4 to figure subtraction modifications.
If you need more space for affiliated companies, complete and attach additional Schedules 80/20. Report Column D totals only on the last additional schedule.
If you attach multiple copies, complete Page 2 only once and attach it as the last page of Schedule 80/20.
Common mistakes
- Repeating Page 2 or placing it incorrectly. When filing multiple copies, complete Page 2 once and place it last. The form warns that failing to do so may delay processing.
- Repeating Column D totals on additional schedules. Report totals only on the last additional Schedule 80/20.
- Entering negative amounts on Lines 5 or 8. Enter zero if the result is negative. For a negative Line 5 result, also enter the result as a positive amount on Line 7.
- Leaving required information out. The form warns that failure to provide required information could result in a penalty.
Questions people ask
Which tax years does the 2024 version cover?
The 2024 Schedule 80/20 states that it is for tax years ending on or after December 31, 2024.
Can I select more than one reason for an intangible-expense exemption?
Yes. Line 6c allows multiple boxes to identify why the amount on Line 6b is exempt from add-back. The listed reasons are “Foreign company or state,” “No principal purpose,” “Add-back unreasonable,” and “Alternative apportionment.” The form directs you to the instructions for details.
What if I am not an affiliated company?
In Step 4, enter the amount from Line 14 on Line 15, skip Lines 16 through 22, and complete Line 23.
How do I calculate the total subtraction modification?
On Line 23, add Lines 15, 19, and 22. The form says all taxpayers complete Line 23.