Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

Are you able to answer Illinois sales tax questions? I am…

Customer Question
Are you able to...

Are you able to answer Illinois sales tax questions?

Accountant's Assistant: Have you talked to a tax professional about this?

No.

Accountant's Assistant: Anything else you want the Accountant to know before I connect you?

I am the cfo of a kentucky based c Corp. Recently the state of Illinois completed a sales tax audit. The auditor is telling me I need to pay use tax on all of the equipment I brought into Il in doing the jobs we completed. I have been a register business in IL for years and have been collecting sales tax for everything I billed in the state. I did not purchase the equipment to use specifically in Il but do jobs all over the US. In each state i pay sales tax on the revenue I generate on the equipment but now Illinois wants 6.25% on the cost of the equip I use one time in that state. Crazy? There has to be some way my situation excludes me from paying this tax.

Submitted: 2 months ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 1 hour by:
5/30/2018
Tax Professional: Lev, Tax Advisor replied 2 months ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,288
Experience: Taxes, Immigration, Labor Relations
Verified

Indeed IL applies Use tax - and there is NO difference from other states.

You owe Illinois Use Tax if you purchase an item for use or consumption in Illinois.
If for any reason - that equipment was originally used in a different state - and use taxed were paid to THAT state - the credit is allowed for taxes properly due and paid to other states.

Questions?

Ask Your Own Tax Question
Customer reply replied 2 months ago
Ky does not require use tax to be paid but the items are taxable for sales tax. It seems that the illinois law seeks to capture the tax on situation where the equipment is purchase stricture for illinois, rather than my situation where the use in Illinois is a small part of the overall use of the equipment. I guess I'm looking for an exclusion for the situation I'm in.
Tax Professional: Lev, Tax Advisor replied 2 months ago

Indeed - KY applies 6% use tax for items purchased for storage, use or other consumption in Kentucky and for which state sales tax were not paid to the seller at the time of purchase.
If so - you may be able to claim a credit - and substantially reduce IL sales tax liability.
There is no exclusion from IL sales tax as you expected. Sorry.

.

What we may suggest in your situation.
1. So - we might need to be clear - if you paid KY sales tax when that equipment was originally purchased? If you have original invoice - that may be verified.
2. Another issue to consider that IL sales/use tax is based on the value of your equipment brought into the state. So - you will need to determine that value after depreciation/amortization - that may reduce the actual use tax amount.

Ask Your Own Tax Question
Tax Professional: Lev, Tax Advisor replied 2 months ago

If you still have any doubts, need clarification - please be sure to ask.

I am here to help you with all Social Security / Tax related issues.
Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Lev Your Own Question
Lev
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,288
33,288 Satisfied Customers
Experience: Taxes, Immigration, Labor Relations

Lev is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
My business is registered in the State of WI and I now have
My business is registered in the State of WI and I now have an employee who lives in IL. What do I need to do in order to for me to have his state withholdings go to IL instead of WI like my other emp… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
This is a question about state income taxes between IL and
This is a question about state income taxes between IL and WI. Earlier this year, my wife and I were living in WI, I worked for a WI employer and she worked for an IL employer. We filed state taxes in… read more
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,601 satisfied customers
I run a semi tractor-trailer rental company in Illinois, and
I run a semi tractor-trailer rental company in Illinois, and i do import tires from China "for my own equipment use-not for sale" I did recieved a letter from IL DOR ROT Discovery Section asking if I … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
We registered as a NV LLC and choose to pay corperate tax
We registered as a NV LLC and choose to pay corperate tax last year, we als registered as a foreign company in IL which is subject for IL corperate tax. let us say we have total 500K sales last year, … read more
Megan C
Megan C
Certified Public Accountant (CPA)
Master's Degree
8,655 satisfied customers
Where can I get a printed chart showing the amount of sales
Where can I get a printed chart showing the amount of sales tax to deduct from each transaction?… read more
abci168
abci168
Principal
27 satisfied customers
Megan, we are a retailer company sell most of our products
Megan, we are a retailer company sell most of our products through Amazon and we are registered in Nevada as an LLC company. However, my partner and I are both residents of Illinois. Currently we do n… read more
Megan C
Megan C
Certified Public Accountant (CPA)
Master's Degree
8,655 satisfied customers
I am 23 and graduated from college in May, 2012. I have a
I am 23 and graduated from college in May, 2012. I have a business that I started while in high school and operated part-time in college. My business is registered as an LLC in Texas. It is headquarte… read more
fastfile
fastfile
Tax Advisor
Master's Degree
550 satisfied customers
I have a LLC setup in Illinois, I have my EIN, do I still need
I have a LLC setup in Illinois, I have my EIN, do I still need to get a resale (sales) tax id to be able to buy wholesale products IF they will be sold in Mexico only?… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
married and filing jointly but i live in TX and the wife lives
married and filing jointly but i live in TX and the wife lives in Illinois. we have done this for 09 & '10 with no problem, but '11 they want me to pay IL state income tax even though i earn my living… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
We are an equipment rental company located in Illinois. We
We are an equipment rental company located in Illinois. We have recently bought a few new pieces of equipment and have questions regarding our tax obligations. It gets a little complicated so I will t… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
Hi, We are full time RVs but still have an IL mailing address,
Hi, We are full time RV's but still have an IL mailing address, drivers license and file taxes. We spend no time in IL. In 09 we bought a truck in VA and registered it to our Montana LLC, now IL wants… read more
TaxWhisperer
TaxWhisperer
Principal
Master's Degree
24 satisfied customers
i live in Michigan, own a home and have my family there but
i live in Michigan, own a home and have my family there but i was recently transfered to IL for my job. I rent an apartment in IL and communte between MI & IL. My company HR person says I have to pay … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
During 2009 I lived in Michigan and was contracted into a local
During 2009 I lived in Michigan and was contracted into a local Engineering company. My employer was located in Illinois and withheld Illinois payroll tax (not Michigan). I believe that I have to file… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
Lets see if you are familiar with this income tax question... My
Lets see if you are familiar with this income tax question...: My sister and I have a S corp in florida. she resides in FL and I reside in IL. Illinois residents pay state tax and florida residents do… read more
RD
RD
Self Employed
Master's Degree
1,164 satisfied customers
I have a small business in Missouri, my question, if I title
I have a small business in Missouri, my question, if I title all my vehicles and trailers in Illinois, to avoid having to pay personal property tax yearly in Missouri, will I be able to write them off… read more
Lev
Lev
Tax Advisor
Bachelor's Degree Equivalent
33,288 satisfied customers
I am an antiques dealer in Illinois with a small brick and
I am an antiques dealer in Illinois with a small brick and mortar shop. It's a sole proprietor operation. If I want to start selling on the internet, through a website of my shop, it's my understandin… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
I have a new employee who lives in Iowa, but our business ...
I have a new employee who lives in Iowa, but our business is located in Illinois. I was told that we could just deduct IL state tax for her wages, and at the end of the year she could file for a refun… read more
RD
RD
Self Employed
Master's Degree
1,164 satisfied customers
My husband started a new job in August in Illinois. We live ...
My husband started a new job in August in Illinois. We live in Wisconsin, so he commutes. His W-2 from IL reflects IL state taxes being taken out. His job prior to this was in Wisconsin, as well as mi… read more
RD
RD
Self Employed
Master's Degree
1,164 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x