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Revenue Dept.: Be correct on ST-556 in sales to out-of-state dealers

November 22, 2010
The Illinois Revenue Department reports that some dealers have incorrectly completed Form ST-556 involving sales to out-of-state dealers.



In such a transaction, the incorrect dealerships checked Box 5a, Out-of-state buyer, on Form ST-556, the sales tax transaction return.


Instead, Box 5b, Sold for resale, should be checked.


The error can lead to dealers receiving assessments from the revenue department, if the purchasing dealer resides in one of the nine states with which Illinois does not have a reciprocal exemption from collecting sales tax.