Illinois Use Tax

[neilbrink]

For those of you who are preparing Illinois Returns, how are you handling the Use Tax on Line 22 for those who have not purchased anything out of state? Are you just putting a zero on line 22, since instructions say to not leave Line 22 blank? Do you ask each client if they have purchased items out of state and whether they have kept their purchase receipts, or do you just routinely use the amount from the table? Thanks.

[neilbrink]

Anyone from Illinois, or anyone else from a state that has a Use Tax?

[Margaret CPA in OH]

Ohio, where I practice, and Indiana and Kentucky (from where I have a few clients) all have a Use tax. I do require a written answer to the question from clients. The question on the Ohio return asks if you made any out of state, mail order, internet or other purchases on which you did not pay sales tax? If so, how much were total purchases? The return calculates the tax due related to the resident county as the rates vary. There is a check box for NO for those who answer no so no need to input a 0.

I include the efiling page which has a checkbox at the top stating that "Under penalties of perjury, I declare that to the best of my knowledge and belief, the Ohio income tax return and if applicable, the Ohio school district income tax return are true, correct and complete." I no longer check that box unless the client has checked it and signed the page.

In addition, Ohio now also has a CYA for the tax department that is a disclosure statement. Essentially the taxpayer has to sign that they read the details related to the direct deposit options selected. The tax department is not responsible for the misapplication of a direct deposit refund, yada, yada. I make the taxpayer check that box and sign the page, too.

I also apologize for the extra steps but I will no longer assume those risks.

[jainen]

>>question on the Ohio return asks if you made any out of state, mail order, internet or other purchases<<

California tried it that way for several years, but of course it didn't work. Now EVERY business, including Schedule C, that ever had $100,000 gross receipts in any prior year, MUST file a use tax return even if they have no such purchases or owe no tax. The return is due April 15 for both calendar and fiscal year filers.

[Margaret CPA in OH]

In Ohio, Kentucky and Indiana, this is on the personal returns, not business.