Good morning @NV,

I am sorry for the confusion surround the IL-1120 filers that are also filing the federal Form 1120-H.  Unfortunately, we have discovered that Illinois DOR is not able to accept Illinois IL-1120 filings that are currently filing a federal Form 1120-H.  They have in place certain cross checks between the federal and Illinois filings that are not currently set up to handle this scenario. This is an industry wide limitation because of the current capabilities of Illinois.  So Lacerte and Proseries both cannot transmit the Illinois filing for federal 1120-H filers. 

What that means is filers will need to paper file the IL-1120 form in this scenario even though federal 1120-H are now able to e-filed. I cannot speak to Illinois priorities regarding this situation and if it will enabled anytime in the near future.  I wish I had better news to report as we understand the pain this causes for preparers.