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Packed room greets officials at Revenue Department seminar

June 10, 2011
Eligible trade-in credits commanded the discussion at a June 7 CATA seminar that featured top brass from the Illinois Department of Revenue.
While officials said Third-Party credits can be combined with “simultaneous” (same-day) credits, several dealers protested that they were fined for permitting such credits. Third-Party credits cannot be coupled with Advance trade-in credits.
Roger Koss, who heads the department’s audit division, said dealers who believe they were wrongly penalized and fined can appeal to the department using Form EDA-98.
But Mark Dyckman, the department’s deputy general counsel on property and sales tax litigation, said accurate paperwork is essential for auditors.
“Advance trade-in credits are a creature entirely of department rules,” Dyckman said. “Since such allowances don’t exist for any other industry, the department aggressively makes sure that all the i’s are dotted and the t’s are crossed. Problems come from creative uses (of the credit) and poor documentation.”
Revenue department officials touched on the ongoing sticking point involving several manufacturers’ titling trusts, such as Ford Motor Co.’s Cab West, which by changing names disallowed any advance trade-in credits for off-lease vehicles.
John McCaffrey, the revenue department’s general counsel, said dealers are caught in the middle of the department’s dispute with the manufacturers. “They had a number of business reasons why they make a business change. But for every action, there is an equal and opposite reaction,” and manufacturers likely did not foresee the dilemma for dealers.
McCaffrey said the latest budget proposed by the General Assembly subjects the department to a 26 percent budget cut. He said the department now will post forms for businesses to download, instead of printing and mailing forms, and he urged dealers to submit paperwork electronically to the department.
“You know in your own offices, the more paperless you go, the more money you save. It’s the same with us,” he said.
Revenue department officials also touched on taxation related to goodwill repairs, sales to out-of-state purchasers, consumables and interim use exemptions.
The CATA recorded the presentation and posted it on the association’s Web site. It can be seen at