By: Mansoor Ansari, Attorney at Law
A quote from the Office of the Attorney General:
“An ongoing investigation launched by the Attorney General’s Office and Department of Revenue’s Criminal Investigations Bureau in November 2009 has resulted in $67 million dollars recovered by prosecutors since they targeted gas-station offenders beginning in late 2009.”
The Challenge for Gas Station Owners
As an owner of a gas station in the Chicago-land area, you are most likely consumed with running your business at a profit versus keeping track of the sales tax that you remit on a monthly basis. Of course, you are trying to:
- Make sure that your employees get paid
- Maintain your costly business permits
- Take something back home to the wife and kids
The Illinois Department of Revenue heavily scrutinizes gas station owners for underpayment of sales tax related to Sales and Use Tax on Qualified Motor Fuel and Diesel Motor Fuel.
Collecting sales tax and remitting a lower amount to the State is tax fraud.
Legislative Response: Amendment 2 to House Bill 5289
Proposed Offense: Sales Tax Evasion
Amendment 2 to House Bill 5289 proposes a new offense of Sales Tax Evasion to prosecute serious offenders who evade paying Illinois sales tax. It is designed to pursue those who:
- Knowingly and willfully take action to conceal, misrepresent, falsify, or manipulate sales-tax returns or
- Engage in practices that under-report and reduce their tax revenue collections, documents, or payments
Enhanced Enforcement and Penalties
The new Sales Tax Evasion offense:
- Increases the ability to find and pursue sales-tax offenders
- Increases punishment and fine levels
- Extends the statute of limitations from 3 years to 5 years, aligning it with other evasion statutes for income taxes and motor fuel taxes
Mansoor Ansari J.D., LL.M. (Tax)
Sales Tax Attorneys Chicago / Sales tax fraud