Illinois Enacts Changes to Electronic Filing Requirements for Sales and Use Tax

Illinois has enacted new electronic filing requirements for sales and use tax filers. Effective January 1, 2018, if a taxpayer’s annual gross receipts average $20,000 or more, the taxpayer will be required to file the following forms electronically:

• Form ST-1, Sales and Use Tax and E911 Surcharge Return
• Form ST-8, Tire User Fee
• Form ST-4, Metropolitan Pier and Exposition Authority Food and Beverage Tax Return
• Form ST-14, Chicago Soft Drink Tax Return
• Form MC-1, Medical Cannabis Cultivation Privilege Tax Return

If a taxpayer is required to file electronically and does not, the following discounts or collection allowances for timely filed and paid returns will be disallowed:

• 1.75% on form ST-1
• 3% discount of the E911 surcharge and assessment fee on Form ST-1, Schedule B
• $0.10 per tire collection allowance for the tire user fee on Form ST-8
• 1.75% on Form ST-4
• 1.75% on Form ST-14
• 1.75% on Form MC-1

The electronic filing requirement can be waived if the taxpayer does not have internet access or it is a hardship to file electronically. The Illinois Department of Revenue will develop forms and procedures for the waiver application. Taxpayers should confirm their filing requirement as loss of the collection discounts would be significant.

The Department will determine who qualifies for the new electronic filing requirements and issue a notice to any taxpayer who is required to file electronically. Forms ST-1, ST-8, ST-4, ST-14, and MC-1 can be filed electronically for free by registering and using MyTax Illinois. To register, visit tax.illinois.gov. (Illinois Department of Revenue, Informational Bulletin FY 2018-05-A)