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Ill. dealers get relief from ST-556 penalty for late filing

November 18, 2016
Tax returns for tax-exempt motor vehicle transactions must be filed with the Illinois Revenue Department within the statutory 20-day period for filing the returns, just as with transactions involving tax. But some dealers in recent years failed to meet the 20-day deadline with tax-exempts.
The department moved this month  — holiday season benevolence? — to eliminate the $100 penalty for late filings for all late motor vehicle tax returns, regardless of whether they were taxable, for all transactions from Aug. 16, 2013, to Aug. 9, 2015.
Also, the department will waive the $100 penalty for all late or non-filers on transactions between Aug. 10, 2015, and Nov. 10, 2016 — provided the returns are submitted by Jan. 31, 2017. All ST-556 and ST-556 LSE returns for transaction after Nov. 10, 2016, must be filed within 20 days of the date of delivery, to avoid the $100 penalty.
The revenue department noted that any penalties that have already been paid will not be refunded.
The late filing assessment has been in effect since Aug. 16, 2013, when Illinois’s Uniform Penalty and Interest Act was amended in the state’s Public Act 98-425.
Tax-exempt transactions include sales to most out-of-state residents, sales for resale, and nonprofits such as charities and governmental, religious and educational organizations.
A revenue department statement on the penalty relief is here.