Illinois taxpayers must file even when no tax is due

Nov 15, 2016 | Gail Cole

Filing in Illinois may be required even when no tax is due.

The Illinois Department of Revenue is required by law to penalize certain dealers who fail to report nontaxable Illinois sales to the department.

Under the Uniform Penalty and Interest Act, a $100 penalty applies for failure to file a transaction reporting return on or before the due date when there is no tax due. The penalty is effective as of August 10, 2015. However, for taxpayers with reports due between August 10, 2015 and November 10, 2016, the penalty will be waived if the required returns are filed by January 31, 2017.

In addition, the department allows an automatic abatement of the penalty for failure to file a reporting return for nontaxable transactions delivered between August 16, 2013 and August 9, 2015, because returns were not required for nontaxable sales during that time. Additional information.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.

Avalara Author

Gail Cole

Avalara Author Gail Cole

Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.