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rogerkap
New Member

Does an Illinois complex trust need to file an Illinois return if the grantor is no longer an Illinois resident and the beneficiary is NOT an Illinois resident?

 
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tagteam
Level 15

Does an Illinois complex trust need to file an Illinois return if the grantor is no longer an Illinois resident and the beneficiary is NOT an Illinois resident?

"Does an Illinois complex trust need to file an Illinois return..."

If the trust is still a grantor trust, then an Illinois return is not required to be filed.

See http://www.revenue.state.il.us/Businesses/TaxInformation/Income/fiduciary.htm


If the trust is a nongrantor trust, then the issue is somewhat more complicated as an Illinois appellate court case (Linn) held, generally, that taxing the income of a trust with no current connection to Illinois was unconstitutional, a decision with which the Illinois Department of Revenue most likely does not agree.

See https://www.quarles.com/publications/for-trusts-with-no-current-illinois-connection-income-tax-is-un...

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