Illinois – Sales Tax Evasion Penalties Enacted

SALT Report 1690 – Illinois recently passed a bill that makes it a felony to file a fraudulent tax return or for failing to file a tax return. Effective January 1, 2013 the Department will consider a person to have committed sales tax evasion if they:
  • Knowingly attempt in any manner to evade or defeat the tax imposed on him or on any other person, and
  • Commit an affirmative act in furtherance of the evasion
An affirmative act in furtherance of the evasion is an act designed to conceal, misrepresent, falsify, or manipulate any material fact, or tamper with or destroy documents or materials related to a person’s tax liability. If found guilty of tax evasion the following charges will be imposed:

Class 1 Felony – The amount of tax evaded is $100,000 or more

Class 2 Felony – The amount of tax evaded is $10,000 or more, but less than $100,000

Class 3 Felony – The amount of tax evaded is $500 or more, but less than $10,000

Class 4 Felony – The amount of tax evaded is less than $500

The Department has the authority to charge two or more acts of sales tax evasion as a single count. The amounts of the tax deficiencies will be aggregated to determine the amount of tax evaded or attempted to be evaded. The period between the first and last acts of evasion may be claimed as the date of the single offense.

Additionally, the Department may choose to prosecute any act of tax evasion at any time within five years of the commission of the act.

For Further Information:

Illinois General Assembly – HB 5289