Illinois Sales Tax Statute of Limitations
Would it not be nice if the state of Illinois forgave sales tax debt? Would it be even nicer if they simply let the old debt fall off of your record? Unfortunately, with the deficit and budget short fall, don’t expect this to happen in your lifetime.
No statute of limitations exists for assessing a liability in cases of fraud or failure to file returns (except for a non-filed use tax return, which has a six-year statute of limitations). Once a liability has been deemed assessed or finalized, the statute of limitations to use enforcement collection action varies from 2 years to 20 years or longer depending on when one or more of the following actions occurred:
- A lien was filed against your property.
- judgment was entered by the Attorney General.
- Personal penalty assessments were issued against any responsible persons involved during incurrence of business debt.
- Certain other enforcement actions were used.
Note: Statute of Limitations is a law which sets the maximum period which one can wait before filing a lawsuit, depending on the type of case or claim. The periods vary by state. Federal statutes set the limitations for suits filed in federal courts. If the lawsuit or claim is not filed before the statutory deadline, the right to sue or make a claim is forever dead (barred).