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The Illinois Department of Revenue (IDOR) recently issued updated sales tax rules and guidance for remote sellers and marketplace facilitators. The updated rules and guidance reflect changes made by the 2019 “Leveling the Playing Field for Illinois Retail Act” that became effective on January 1, 2021 (Public Act 101-0031 and Public Act 101-0604).…

The Illinois Department of Revenue recently proposed regulations implementing their remote seller and marketplace facilitator legislation. The guidance adds Ill. Admin. Code tit. 86, § 131.101 et seq. to provide updated definitions, explain the determination of remote retailer status, and explain when the gross receipts and separate transaction thresholds are met.

The Illinois Department of Revenue (IDOR) recently announced an expansion of its audit resolution program as it braces for a wave of litigation over amendments to the state’s marketplace facilitator law. The department expands its Audit Fast Track Resolution (FTR) Program to all sales and miscellaneous tax audits except for Motor Fuel Use Tax. The…

Effective April 1, 2020, the Cook County Department of Revenue is no longer applying its amusement tax to sales of paid television to non-residential customers, such as bars and hotels. The amusement tax ordinance never expressly applied to paid television. Rather, in 2007, the Department issued Amusement Ruling #1, which purported to include paid…

After nearly a decade of stalled litigation in Illinois state court, the U.S. Court of Appeals for the Seventh Circuit permitted a group of taxpayers to proceed in federal court with their U.S. constitutional challenge to property tax assessments, over Tax Injunction Act and comity objections by Cook County. While the district court held that…

After nearly a decade of stalled litigation in Illinois state court, the US Court of Appeals for the Seventh Circuit permitted a group of taxpayers to proceed in federal court with their US constitutional challenge to property tax assessments, over Tax Injunction Act and comity objections by Cook County. While the district court held that…

On June 14, 2019, an Illinois Appellate Court held that a taxpayer’s subsidiaries are financial organizations that were excluded from the taxpayer’s Illinois combined return. During 2006, 2007 and 2008, Illinois excluded from a combined return those affiliates that apply a different apportionment method. (Note that, for taxable years ending on or after December 31,…

On May 22, 2019, the Illinois Appellate Court held that the late filing of a boat tour business’ Amusement Tax protest was excusable. The Cook County Department of Revenue had violated the taxpayer’s procedural due process rights by “affirmatively misleading” it on the proper filing deadline. Cook County law requires that taxpayers protest assessments within…

On September 26, 2018, the Illinois Department of Revenue issued a Private Letter Ruling confirming that certain electronic signatures satisfied the first prong of the software license sales tax exemption test. In Illinois, a license of software is not a taxable retail sale if a five-part test is satisfied. The first prong asks whether the…