Illinois Administrative Code › Title 86 - REVENUE › Part 130 - RETAILERS' OCCUPATION TAX › Subpart H - BOOKS AND RECORDS › Section 130.815 - Preservation and Retention of Records

Current through Register Vol. 48, No. 28, July 12, 2024
a) Books and records and other papers
				reflecting gross receipts received during any period with respect to which the
				Department is authorized to issue notices of tax liability as provided by
				Sections 4 and 5 of the Act shall be preserved until the expiration of such
				period unless the Department, in writing, shall authorize their destruction or
				disposal prior to such expiration.
b) In determining the period for which the
				Department is authorized to issue a notice of tax liability, the following
				material from Sections 4 and 5 of the Act must be considered.
c)
Except in case of a fraudulent
				return
(in which instance, there is no statute of limitations),
or
except
in the case of an amended return (where a
				notice of tax liability may be issued on or after each January 1 and July 1 for
				an amended return filed not more than 3 years prior to such January 1 or July
				1, respectively),
or
except in case of failure to file a
				return
(in which instance, there is no statute of
				limitations)
,
or except
with the consent of the person
				to whom the notice of tax liability is to be issued, no notice of tax liability
				shall be issued on and after each January 1 and July 1 covering gross receipts
				received during any month or period of time more than 3 years prior to such
				January 1 and July 1, respectively, except that if a return is not filed at the
				required time, no notice of tax liability may be issued on and after each July
				1 and January 1 for such return filed more than 3 years prior to such July 1
				and January 1, respectively.
[35 ILCS 120/4
				and 5] Provided, however, that the
				foregoing limitations upon the issuance of a notice of tax liability shall not
				apply to:
1) the issuance of a notice of tax
				liability with respect to any period of time prior thereto in cases where the
				Department has, within the period of limitation then provided, notified the
				person making the return of a notice of tax liability even though such return,
				with which the tax that was shown by such return to be due was paid when the
				return was filed, had not been corrected by the Department in the manner
				required by Section 4 of the Act prior to the issuance of such notice,
				and
2) the issuance of any such
				notice with respect to any period of time prior thereto in cases where the
				Department has, within the period of limitation then provided, notified a
				person of the amount of tax computed even though the Department had not
				determined the amount of tax due from such person in the manner required by
				Section 5 of the Act prior to the issuance of such notice; but in no case shall
				the amount of any such notice of tax liability for any period otherwise barred
				by the Act exceed for such period the amount shown in the notice of tax
				liability theretofore issued.
EXAMPLE 1: Taxpayer files a tax return on June 20, 2023. The
				  statute of limitations for the Department to issue a notice of tax liability
				  expires June 30, 2026, for the return filed in June.
EXAMPLE 2: Same facts as above, but the Department does not
				  issue a notice of tax liability by June 20, 2026. It is later discovered in
				  2027 that the June 20, 2023, return was fraudulent. As such, the Department may
				  issue a notice of tax liability at any time; there is no time limit.
EXAMPLE 3: Taxpayer files a tax return on July 20, 2024. The
				  statute of limitations for the Department to issue a notice of tax liability
				  expires December 31, 2027.
EXAMPLE 4: Taxpayer files all monthly tax returns for the
				  year 2024, except for October. In January 2028, the Department discovers the
				  taxpayer failed to file the return for October 2024. While the three-year
				  statute of limitations to issue a notice of tax liability expired on December
				  31, 2027, the Department may still issue a notice of tax liability for failure
				  to file to a return.