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Notify revenue dept. of changes that affect IBT Numbers

November 24, 2010

Illinois Business Tax numbers, assigned to dealers by the Illinois Revenue Department, are unique to a particular "taxpayer," or business entity. If a dealer's business structure changes to the extent that a new legal entity is created-through merger, consolidation, reorganization from one type of legal entity to another (for example, from a partnership to a corporation or limited liability company)- the new or surviving business must:

• Notify the Revenue Department of the change by discontinuing the registration of any business that no longer exists; and 
• Register with the Department any new entities resulting from the change. Glen Bower, director of the Revenue Department, said statutory violations occur when the ownership of a business changes and the new owners fail to notify his department of the change.

Continuing to file returns and making payments under the IBT number of a discontinued business also is a violation. If a business is sold to a new owner(s) or is reorganized into a new entity, the old IBT number no longer is valid. Continuing to file under an old IBT number results in improper tax crediting and leads to possible penalties for nonfiling.

"In keeping with the mission of this agency to provide professional service and fair enforcement," Bower said, "it is our responsibility to ensure that all the taxpayers in Illinois are well informed of their tax requirements and to help them comply with the tax laws of this state." An IBT number identifies a dealer's account with the Revenue Department for purposes of filing returns and making payments under the various taxes administered by the department, such as sales, business, income, and withholding income taxes.

 

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