When you reply to the request you should provide the following:
- A copy of your Sch C as requested
- A copy of all income source documents that tie to your income reported
- A copy of all expenses source documents that tie to each item
- This appears to me to be an odd request. I think Illinois is looking at the new instruments that you purchased and expensed. Not sure how you reported those items. Illinois does not follow federal bonus depreciation, but they do follow federal Section 179. Just make sure when you provide the documentation you indicate the support behind how you deducted these items.
- Make a complete copy of everything you send to Illinois for your files.
- Send your response and documents certified mail return receipt requested. This costs a little, but it provides you with support that Illinois received what you sent.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
