How long do I have to file an Illinois amended individual income tax return to report a federal change?
Directions state that : If you are changing your illinois return due to a change to your federal return, do not file this form until you receive notification that the IRS has accepted the changes.
I am amending my 2003 taxes and i am told i have to do this within three years ?
Hello, timbo! The IL-1040-X instructions (linked below) state that the three-year limit applies when there is a state-only change that results in a refund. If you realize that you owe more tax on a prior year return, you should "pay the tax, penalty, and interest as soon as you realize that it is owed."
However, since it sounds like you are also amending your federal return, the instructions give you two options regarding the state return:
1) if the federal change INCREASES your Illinois tax, you must file IL-1040-X and pay within 120 days of receiving the IRS confirmation of your federal change
2) if the federal change DECREASES your Illinois tax, "you must file IL-1040-X "… within two years plus 120 days of federal finalization."
It sounds to me like the "two years plus 120 days" trumps the other 3 year deadline. But to be safe, I would highly recommend calling the IL Dept of Revenue at 800-732-8866; explain your situation and ask them how the limits apply. Good luck!