Sunday, April 3, 2011

Undue Burdon on IL Taxpayers

Doing my state taxes now. Came across a new item called Use Tax, or UT (aka, internet tax). They want to tax us on any item we purchase outstate. Check out the wording from the IL-1040 instruction booklet.
How do I determine the Illinois Use Tax I owe?
To determine the Illinois Use Tax you owe, check your records to see if you were charged tax on internet, mail order, or other out-of-state purchases and use the Use Tax (UT) Worksheet to calculate your tax. If your records are incomplete and you had major purchases, add the actual cost of your major purchases to the estimated cost of any other purchases you made during the year. Enter the total on Lines 1a or 2a of the UT Worksheet to calculate the use tax you owe. no major purchases, use the UT Table to help you estimate the use tax you owe. Enter the Illinois Use Tax from the UT Worksheet or UT Table on Form IL-1040, Line 22.
Note: If we find that you owe additional tax, we may assess the additional tax plus applicable penalties and interest. We conduct routine audits based on information received from third parties, including the U.S. Customs Service and other states.
They actually expect us to keep records of what we buy. And at the end they try to scare us by threatening penalties and interest if they find out we owe more. I guess Duty Free is no longer free, you'll have to pay 6.25% if you live in IL.


Booooo!!!! Get it on the collection end, or don't get it at all.

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