The Illinois Department of Revenue has released helpful guidance on legislation already enacted that alters how payments for sales, use, and excise taxes and fees are understood. Starting January 1, 2024, when taxpayers make payments (except quarter-monthly ones), they are agreeing to the amount owed.
From January 1, 2024, if you disagree with a tax assessment, you have two options:
Before this change, making a payment didn’t necessarily mean the taxpayer agreed with the tax assessment. Taxpayers under audit could make payments and still dispute the findings. However, as of January 1, 2024, making a payment means you accept the liability. This also means you waive certain rights:
Unpaid amounts can still be reviewed within the allowed timeframe under Illinois law. This update affects various tax and fee Acts listed in the informational bulletin, particularly Section 4 of the Retailers’ Occupation Tax Act. (Informational Bulletin FY 2024-15, Illinois Department of Revenue, January 2024)