Illinois’ Aggressive Sales Tax Enforcement
The state of Illinois is broke and is looking for revenues, penalties, and interest. Unfortunately, many business owners have been underreporting their sales tax and in essence embezzling the government’s money. It’s a catch-22 when your business is failing because your property taxes keep going up, but you have to pay that same state their fair share of sales tax.
Recent Sales Tax Evasion Cases in Chicago
Liquor Store Operators Charged
Nine Chicago liquor store operators were charged with sales tax evasion.
From July 2010 to December 2013, the nine defendants collectively defrauded the state out of more than $3.5 million in sales taxes, according to a statement from the Attorney General’s office.
Felony Charges and Penalties
- Seven operators were charged with sales tax evasion of more than $100,000, a Class 1 felony punishable by up to four to fifteen years in prison.
- Yasir Kanan and Dipakkumar Patel were charged with sales tax evasion of more than $10,000, a Class 2 felony punishable by up to three to seven years in prison, according to the statement.
These charges are the result of a two-year criminal tax investigation into untaxed liquor brought in from out of state by the Illinois Department of Revenue’s Criminal Investigation Division.
How We Can Help
Our office is currently representing a defendant of a sales tax fraud case where funds over $400,000.00 were misapplied.
Your criminal history and other related offenses will make or break your case at times when looking for a favorable plea with the Attorney General’s office.
Get Legal Assistance
Call our office to discuss your sales tax violations and how to repair your credit with the IDOR.
Frequently Asked Questions
What is sales tax evasion and why is Illinois enforcing it more aggressively?
Sales tax evasion occurs when a business fails to report or underreports taxable sales to avoid paying the appropriate amount to the state. Illinois is increasing enforcement due to budget shortfalls and is targeting businesses suspected of embezzling state tax revenue.
What penalties can business owners face for sales tax evasion in Illinois?
Penalties vary by the amount evaded. Evading more than $100,000 can result in a Class 1 felony with a sentence of 4 to 15 years in prison. Lesser amounts, like over $10,000, can lead to Class 2 felonies, punishable by 3 to 7 years in prison.
How has Illinois acted against tax evasion recently?
The state charged nine Chicago liquor store operators with defrauding over $3.5 million in sales taxes from 2010 to 2013. These charges followed a two-year investigation by the Illinois Department of Revenue’s Criminal Investigation Division.
Can a criminal history impact the outcome of a tax evasion case?
Yes. A defendant’s criminal record and related offenses significantly influence plea negotiations and outcomes in tax fraud cases with the Attorney General’s office.
What legal help is available for those accused of sales tax fraud?
Defendants can consult legal professionals experienced in tax fraud cases. Legal representation can help assess charges, negotiate with prosecutors, and develop a strategy for minimizing penalties or pursuing a favorable plea.