Schedule UB/INS: Tax for a Unitary Business Group with Foreign Insurer Members (2024)
Illinois · Illinois DOR · Used for tax years 2024
Illinois Schedule UB/INS calculates tax for a unitary business group with foreign insurer members. It figures the foreign insurer members’ income and replacement taxes, the other members’ net income and taxes, and the group’s replacement tax reduction.
Who files this form
Schedule UB/INS is for a unitary business group with foreign insurer members. It figures the group’s tax and is attached to Form IL-1120.
The 2024 schedule applies to tax years ending on or after December 31, 2024.
What you'll need
Have these forms and details ready:
- Form IL-1120 with Steps 1 through 7 completed.
- Schedule UB with all steps completed.
- The name and FEIN of the member filing Schedule UB, plus each foreign insurer member’s FEIN.
- Each foreign insurer member’s Illinois sales, income or loss, state or country of domicile, and information needed to figure the tax imposed by that state or country.
- Each foreign insurer member’s net premiums taxable under Section 409 of the Illinois Insurance Code.
- Amounts deducted in computing this year’s federal taxable income for the specified Illinois privilege, fire insurance company, and fire department taxes.
- The other members’ nonbusiness income or loss allocable to Illinois and non-unitary partnership business income or loss apportioned to Illinois.
How to file
Attach Schedule UB/INS to your Form IL-1120.
- Complete Steps 1 through 7 of Form IL-1120 and all steps of Schedule UB before starting this schedule.
- Enter the name shown on the tax return of the member filing Schedule UB and its FEIN. Enter the foreign insurer members’ FEINs in the member columns.
- Complete Steps 1 through 4 to figure the foreign insurer members’ taxes, then Steps 5 and 6 for the other members and the group’s total tax.
- Carry the replacement tax reduction from Line 60 to Form IL-1120, Step 8, Line 51. Carry the income tax reduction from Line 73 to Form IL-1120, Step 8, Line 54.
The supplied form does not give a mailing address or e-filing directions.
Common mistakes
- Do not start this schedule before completing the required parts of Form IL-1120 and Schedule UB.
- Do not include retaliatory tax in the privilege tax amount on Line 28a.
- If the result on Line 8 or Line 52 is negative, enter zero.
- Do not enter less than zero on Lines 19, 30, or 67.
- Round the ratios on Lines 2c, 8, 46, and 52 to six decimal places.
- Do not leave out required information. The form warns that failure to provide it could result in a penalty.
Questions people ask
What if a foreign insurer member’s state or country of domicile does not impose income tax on insurance companies?
Check the box on Line 25 and enter zero on that line.
What replacement tax rate does the schedule use?
Line 12 multiplies the foreign insurer member’s net income or loss by 2.5%. Line 56 also uses 2.5% for the other members’ replacement tax.
How is the 1.75% income tax reduction limit figured?
Multiply the net premiums on Line 26 by 1.75%, then subtract the total of the specified taxes on Lines 28a through 28c. The result on Line 30 cannot be less than zero.
Where do Schedule 1299-D credits enter the calculation?
Lines 17 and 65 take the credit amount from Form IL-1120, Line 48. The schedule then calculates the foreign insurer members’ and other members’ shares.