Instructions for Schedule 80 / 20 Related-Party Expenses - Illinois

This document contains official instructions for Schedule 80/20 , Related-Party Expenses - a form released and collected by the Illinois Department of Revenue.

FAQ

Q: What is Schedule 80/20?
A: Schedule 80/20 is a tax form used to report related-party expenses.

Q: What are related-party expenses?
A: Related-party expenses refer to the expenses incurred between two entities that have a special relationship, such as a parent company and a subsidiary.

Q: Why do I need to report related-party expenses?
A: Reporting related-party expenses ensures transparency and prevents tax avoidance or improper transfer pricing.

Q: Who needs to file Schedule 80/20?
A: Individuals or businesses that have related-party expenses in the state of Illinois need to file Schedule 80/20.

Q: How do I fill out Schedule 80/20?
A: You will need to provide information about the related-party transactions, the amounts involved, and the relationship between the entities.

Q: When is the deadline to file Schedule 80/20?
A: The deadline to file Schedule 80/20 in Illinois is usually the same as the deadline for filing your state tax return, which is April 15th.

Q: What are the consequences of not filing Schedule 80/20?
A: Failure to file Schedule 80/20 or inaccurately reporting related-party expenses can result in penalties and interest charges.

Q: Can I e-file Schedule 80/20?
A: Yes, Illinois allows electronic filing of Schedule 80/20.

Q: Do I need to keep records of related-party expenses?
A: Yes, it is important to keep records of related-party transactions and expenses for documentation and future reference.