What Is the Green Sticker?
If you have been threatened by an Officer of the Illinois Department of Revenue that your business would receive a green sticker, then you are on the road to a revocation.
You may have been contacted by Annie or another Agent of the IDOR to either:
- Pay your amount due in full
or - Have your sales tax certificate and business registration revoked.
Revocation hearings take place at the Thompson Center in downtown Chicago. At this hearing, your attorney has the opportunity to represent you and try his or her best to make sure that your license is not revoked.
Why Am I Getting a Green Sticker?
The Illinois Department of Revenue puts a green sticker on the front door of your business as a way for all parties to acknowledge that you can no longer conduct business in the State.
This means you have unpaid sales tax due to the State that must be paid in order for you to continue your business operation.
This sales tax could be due to:
- Collecting and not remitting the sales tax
- Not having collected it properly in the first place
Can I File a Chapter 11 Bankruptcy and Start Conducting Business?
Yes.
Filing a Chapter 11 Bankruptcy on your sales tax debt in Illinois will get your revoked sales tax certificate back in place.
However, the IDOR’s attorney will likely contest the bankruptcy and try their best to have your business removed from the protection of the Bankruptcy Court.
In the past, their attorneys have clearly said that this is just another method of stealing more sales tax.
This is not impossible, but be prepared to fight in Bankruptcy Court.
Important Note on Payment Plans
Remember: Payment plans are always at the discretion of the IDOR. It is not a right, but a privilege.
Contact our office to discuss this matter.
Frequently Asked Questions
What does receiving a green sticker from the Illinois Department of Revenue mean?
A green sticker placed on your business by the Illinois Department of Revenue (IDOR) signals that your business has been revoked from operating in the state due to unpaid sales tax. It notifies the public and the business owner that the business cannot legally continue operations until the tax issue is resolved.
Why does the Illinois Department of Revenue issue green stickers?
Green stickers are issued when a business owes unpaid sales taxes. This may happen if you collected sales tax but failed to remit it, or if you improperly collected sales tax to begin with. The sticker serves as notice that your business is no longer authorized to operate until the debt is paid.
Can I still save my business if I’ve received a green sticker?
Yes, you may be able to save your business. Options include paying the debt in full or filing for Chapter 11 bankruptcy, which may allow you to reinstate your sales tax certificate. However, the IDOR’s attorneys typically fight hard against such bankruptcy protections, so legal representation is strongly recommended.
Does filing Chapter 11 bankruptcy guarantee my sales tax certificate will be reinstated?
No, filing Chapter 11 bankruptcy does not guarantee success. While it can temporarily restore your revoked certificate, the IDOR’s legal team often contests these actions. Success will depend on the specifics of your case and your ability to defend it effectively in bankruptcy court.
Can I negotiate a payment plan to resolve my sales tax debt?
Possibly, but payment plans are not guaranteed. They are offered solely at the discretion of the IDOR and are considered a privilege, not a right. Consulting with an attorney experienced in Illinois sales tax issues is the best way to explore this option.