How to Fight the Results of an Illinois Sales Tax Audit
The Illinois Department of Revenue often audits businesses’ sales tax returns. Once the audit is complete, you will receive a Notice of Proposed Tax Liability.
The Notice of Proposed Tax Liability is Illinois’ written notice to you that you have been under audit and the audit has been completed.
This notice is not a bill. It’s a notice of Illinois’ proposal for your additional tax liability.
What happens if you disagree with the results? The good news is that you can challenge the proposal.
There is an established process that allows you to file Form ICB-1, Request for Informal Conference Board Review. That request will say that you disagree with the audit results and want to challenge them.
Now that you know you can fight the determination, you may have some questions. Here is what you need to know.
What Are The Rules?
- The request has to be written. It doesn’t have to be written on the Form ICB-1, but it does need to contain all of the information the form requires. It is usually easiest to simply fill out the form.
- The form has to be submitted within 60 days of receiving the Notice of Proposed Tax Liability. If you do not submit the form within 60 days, you lose your opportunity to challenge the tax liability through the Informal Conference Board.
Should You Hire an Attorney?
If your situation simply requires showing evidence that the state did not see initially, then it may be appropriate to represent yourself.
However, the appeal process often requires more than simply submitting additional documents. You had the opportunity to produce the necessary documents during the audit.
The audit determination has already stated that there is additional tax owed. Now, the state has the opportunity to make other determinations. They will examine why you underreported the tax and whether you knew or should have known about the error. They may find that you willfully underreported the tax. Determinations like this can have real legal and financial consequences for you.
Ultimately, in a situation that could have legal consequences, you should have legal representation.
For State Tax Audit Representation, contact Tax Law Offices. We can help.