Form IL-1000-E, also known as the Certificate of Exemption for Pass-through Withholding, is a form used in Illinois to allow certain business owners (partners, shareholders, or beneficiaries) to elect to pay their own taxes on income derived from a pass-through entity, such as a partnership, S corporation, or trust. This form is intended for those who want to handle their own Illinois income tax payments rather than having them withheld by the entity from which they receive income. It is essential for owners of pass-through entities to complete this form accurately to make the exemption valid. Importantly, this form does not apply to investment partnerships or entities exempted by the state from withholding tax. Once completed, the form should be submitted only once and retained by the pass-through entity unless explicitly requested by the Illinois Department of Revenue. This article will guide you through how to fill out and file Form IL-1000-E, ensuring you understand each part of the form.
How To File Form IL-1000-E
Filing Form IL-1000-E is a straightforward process that involves completing the required information and submitting it to the pass-through entity, not to the Illinois Department of Revenue unless requested. Once the form is submitted, the pass-through entity must retain it in their records. The completed form should not be resubmitted annually unless there is a specific reason to do so, such as a change in the taxpayer’s status. Below is a step-by-step guide to ensure the proper completion of Form IL-1000-E.
How To Complete Form IL-1000-E
Step 1: Identify the Pass-Through Entity
In this section, the pass-through entity must provide its details. This ensures that the Illinois Department of Revenue knows which entity is making the exemption claim.
- Name: Enter the full name of the pass-through entity (e.g., partnership, S corporation, or trust).
- Phone Number: Provide the entity’s contact phone number.
- Mailing Address: Include the street address, city, state, and ZIP code of the pass-through entity.
- Federal Employer Identification Number (FEIN): Enter the FEIN assigned to the pass-through entity by the IRS.
This section identifies the entity whose income is being distributed and ensures that the correct business entity is linked to the exemption claim.
Step 2: Identify the Owner (Partner, Shareholder, or Beneficiary)
This part of the form identifies the individual who will be exempt from withholding.
- Name: Enter the name of the owner (individual, partner, shareholder, or beneficiary) who is electing the exemption.
- Mailing Address: Provide the owner’s mailing address, including street address, city, state, and ZIP code.
- Federal Employer Identification Number (FEIN): If the owner is a business entity, enter its FEIN. If the owner is an individual, this section is not applicable.
- Business Type: Check the box that corresponds to the owner’s business type. You will need to choose one of the following options:
- Corporation
- Subchapter S Corporation
- Partnership
- Trust
- Estate
- Phone Number: Enter the phone number of the owner or the representative of the owner.
This section provides the Illinois Department of Revenue with the necessary information to confirm the owner’s eligibility for the withholding exemption.
Step 3: Sign Below
This section is where the fiduciary or authorized representative certifies the accuracy of the information provided.
- Certification: The fiduciary or authorized representative must certify that the owner identified in Step 2 will file all required Illinois income tax returns and make timely payments of any taxes due. They also acknowledge that the owner is subject to the personal jurisdiction of the state of Illinois for the purposes of collecting income taxes.
- Signature of Owner, Officer, Fiduciary, or Authorized Representative: The person completing the form must sign here to affirm the information provided is accurate and complete.
- Date: Enter the date the form is signed.
- Printed Name: Print the name of the person signing the form.
- Title: Indicate the title of the person signing (e.g., partner, shareholder, trustee).
By signing, the individual affirms that they have the authority to act on behalf of the entity and the owner in this matter.