Illinois: Sales Tax Handbook
How to appeal a sales tax audit or penalty in Illinois
In Illinois, the Revenue Department will frequently audit business sales tax returns and may issue penalties or punishments for tardy filing, incorrect reporting, willful omissions, or other violations. Penalties can range from fines to revocation of your sales tax permit depending on the infraction.
If you disagree with a penalty or ruling made by the Illinois Revenue Department, you have several options you can pursue in appealing their decision. This page contains basic guidelines for appealing to the Revenue Department, to an administrative appeal body, and through the courts.
Sales Tax Statute of Limitations in Illinois
In sales tax law, the "statute of limitations" is the maximum amount of time state authorities have to investigate and begin potential audit or prosecution related to a a filed Illinois sales tax return in the event of underpayment, incorrect reportings, etc. The Revenue Department cannot begin an audit or issue a penalty after this timeframe.
The statute of limitations in Illinois is three years from the tax period or month during which the taxable gross receipts were received.
Appealing to the Revenue Department in Illinois
If you do not agree with a penalty or decision made by the Illinois Revenue Department, you have the right to file an appeal and ask for reconsideration. In the case of a department appeal, an official petition must be filed with the Department of Revenue within sixty days after the issuance of the notice of deficiency
TopAdministrative Sales Tax Appeals in Illinois
This district has no administrative appeal body
TopJudicial Sales Tax Appeals in Illinois
If all other appeal avenues fail, businesses can make a final appeal in the state court system. When working with judicial appeals, the suit must be filed with the Circuit Court within thirty-five days after the date in which the administrative decision is served
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