Illinois is next up on the list of cash-strapped states looking to collect unreported, unpaid or underpaid taxes through a newly enacted amnesty program. Under the plan, businesses have between October 1, 2010 and November 8, 2010 to pay all taxes owed to the Illinois Department of Revenue and they would avoid paying any interest. Companies that fail to take advantage of this amnesty program will face paying double interest and penalties fees.
Are you considering taking advantage of the Illinois Amnesty Program but don’t where to start? If so, contact us now. Our tax experts can help you determine whether your business meets all the necessary requirements and provide you with valuable insight. For more information on the 2010 Illinois Tax Amnesty Program, click here.
Just as I predicted in my post a few weeks ago, more companies are being accused of tax fraud. Recently, six gas stations in Illinois were indicted for stealing sales tax from customers that paid for fuel at the pump. These station owners misrepresented the amount of gasoline and other goods they sold so they can pay less taxes and pocket millions of dollars. Fraud investigators uncovered almost $13 million of unpaid sales taxes that are due to Illinois. A voluntary disclosure program, started in October 2009, uncovered most of these instances of fraud. Unfortunately, for these storeowners these sales tax fraud disclosures were not part of an amnesty program and they will most likely face criminal charges. Sales tax fraud conviction carries a minimum of two to five years for each offense.
Business owners looking to make sure they avoid time in the slammer and avoid huge fines should look into obtaining sales tax automation solutions that will ensure that your business is compliant.
Recently, a joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the California Board of Equalization (BOE), and a team of federal and state prosecutors indicted five businesses for tax evading schemes. This three-year investigation uncovered that multiple distributors and wholesalers plotted to defraud California by setting up dummy corporations, fake invoices and false excise tax returns. California law says that, when a distributor sells a wholesaler untaxed products for sale in California, the distributor must collect excise taxes from the wholesaler and remit them monthly to the State Board of Equalization, along with reports on products sold and taxes owed.
Widespread smuggling and illegal sale of cigarettes and other tobacco products cost states an estimated $5 billion in annual revenue a year. U.S. Attorney Benjamin Wagner believes that California loses an estimated $35 million to unpaid taxes. When tax laws are ignored and taxes go unpaid, we all suffer. These tax dollars often go into funding public state programs that everyone enjoys.
An investigation like this one opens the door to a culture of widespread disregard of state tax laws. Those businesses thinking of shortchanging the government should be aware that these types of crimes come with huge risks such as six-figure fines and jail time. As we get further into 2010, expect to see more businesses busted for similar tax evasion plots.
For more information about state tobacco products excise taxes, click here.
Although many state budgets are at an all time low, more states than ever are implementing sales tax holidays. Illinois just joined the rank of states that suspend sales tax during a set period, bringing the total up to 18. This Friday marks the start of the much anticipated sales tax holiday for more ten states.View a complete list of states and exempt products for August. Learn how your business can avoid keeping track of all the upcoming sales tax holidays.
Soft drink companies and other companies that sell sugary beverages are facing a war of epic proportion---the purposed tax on caloric sweetened beverages. 
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