Illinois – Use Tax for Individuals

SALT Report 1495 – The Illinois Department of Revenue has updated their guidance regarding use tax for individual taxpayers.   Illinois, like most states, imposes use tax on purchases made from businesses located outside the state that are brought into Illinois, or if you have products delivered to you from a business that is located outside Illinois.
Also, if you purchase cigarettes from another state or country for use in Illinois, you owe an additional Cigarette Use Tax and must complete Form RC-44, Cigarette Use Tax Return.  You can pay this tax along with your Illinois sales tax, which is due on all purchases of cigarettes, at the same time as the Cigarette Use Tax on Form RC-44.
The update notes that Illinois is determined to collect use tax from those who owe it.  The Department is examining the sales records of out-of-state retailers, sharing sales information with other states and gathering information on overseas purchases from the U.S. Customs Service.  If the Department determines that use tax is owed by an Illinois resident, that resident will be billed for all unpaid taxes, plus penalties and interest.  Additionally, if a taxpayer does not have records to document their use tax liability, the Department will estimate it for them. These taxpayers will have the right to dispute the Department’s estimates.
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