Illinois Administrative Code › Title 86 - REVENUE › Part 660 - TOBACCO PRODUCTS TAX ACT OF 1995 › Section 660.40 - Credit for Stamps that Are Damaged, Unused, Destroyed or Affixed to Packages of Little Cigars Returned to the Manufacturer

Current through Register Vol. 48, No. 28, July 12, 2024
a) When a stamping distributor wishes to
			 receive credit for stamps that have been affixed to packages of little cigars,
			 the stamping distributor shall file a claim on a form prescribed by the
			 Department.
b) If the Department
			 sends one or more of its representatives to witness the destruction of the
			 stamps, the Department may charge the stamping distributor for travel expenses,
			 such as lodging, meals and mileage.
c) If a greater number of stamps in a certain
			 series of stamps is destroyed than is included in the claim for credit, the
			 excess number of stamps destroyed in that series of stamps will not be
			 credited. If a lesser number of stamps in a certain series of stamps is
			 destroyed than is included in the claim for credit, the actual number of stamps
			 destroyed in that series will be credited. If stamps are destroyed in a certain
			 series of stamps not listed in the claim for credit, credit for stamps in that
			 series will not be made.
d) Claims
			 for credit for tax stamps will be approved only when the claim indicates that
			 the packages of little cigars involved are unsalable and are to be shipped by
			 the claimant in interstate commerce, by a common carrier or through the United
			 States mails, to a designated consignee outside Illinois, or when the claim
			 indicates that the packages of little cigars involved are unsalable and are to
			 be destroyed by the claimant, when the claim indicates that the packages of
			 little cigars involved have been improperly stamped (e.g., over-stamped,
			 under-stamped) or when the claimant returns unused or damaged stamps.
e) It is mandatory upon a stamping
			 distributor to destroy (in the presence of a Department representative or
			 representatives if the Department so requires) Illinois stamps that are affixed
			 to packages of little cigars in connection with a claim to the Department for
			 credit of stamps, if the stamping distributor has improperly stamped packages
			 of little cigars by affixing Illinois tax stamps in an amount that is
			 insufficient to evidence full payment of the tax.
f) Claims for credit of tax stamps affixed to
			 packages of little cigars will not be approved unless the stamping distributor
			 filing the claim has title to the packages of little cigars covered by the
			 claim and is carrying Illinois tax-stamped little cigars in his or her
			 inventories.
g) If a claim
			 discloses that, subsequent to the destruction of the stamps, the unstamped
			 packages of little cigars are to be shipped in interstate commerce to a
			 designated out-of-state consignee, credit for the stamps will not be made
			 unless and until the stamping distributor submits to the Department, to support
			 his or her claim, an affidavit from the manufacturer that receives and destroys
			 the stamps. If an affidavit cannot be obtained, a waybill, freight bill or bill
			 of lading, issued by a common carrier, or an insurance receipt or registry
			 receipt issued by the U.S. Postal Service (USPS), or a USPS receipt Form 3817,
			 proving that the packages of little cigars have actually been shipped by the
			 stamping distributor in interstate commerce, by common carrier or through the
			 United States mails, to the out-of-state consignee designated in the claim,
			 will be accepted.
h) Subsequent to
			 the destruction of tax stamps affixed to packages of little cigars, credit for
			 the stamps will not be made if a review of pertinent returns filed by the
			 stamping distributor reveals that the tax stamps scheduled in the claim have
			 not been included in the stamping distributor's inventories.
i) In connection with any claim for credit of
			 Illinois tax stamps, in addition to the types of proof specified, the
			 Department reserves the right to require additional proof in support of any
			 claim as may appear to be necessary.
j) If the Department approves a claim for
			 credit for tax stamps, the Department (subject to the same limitations as those
			 provided for in Section
			 660.35 ) may
			 issue an assignable credit memorandum or refund to the stamping distributor or
			 the stamping distributor's legal representative. Under no circumstances will a
			 claim for credit be approved in an amount that exceeds the amount paid by the
			 stamping distributor for the stamps that are the subject of the
			 claim.