Section 660.24 Books and Records; Invoices – Retailers

TITLE 86: REVENUE

CHAPTER I: DEPARTMENT OF REVENUE

PART 660 TOBACCO PRODUCTS TAX ACT OF 1995

SECTION 660.24 BOOKS AND RECORDS; INVOICES – RETAILERS

Section 660.24  Books and

Records; Invoices – Retailers

a)

Every

retailer, as defined in Section 10-5

of the Act

, whether or not the

retailer has obtained a retailer's license pursuant to Section 4g, shall keep

complete and accurate records of tobacco products held, purchased, sold, or

otherwise disposed of, and shall preserve and keep all invoices, bills of

lading, sales records, and copies of bills of sale, returns and other pertinent

papers and documents relating to the purchase, sale, or disposition of tobacco

products.

1)

The books and

records need not be maintained on the licensed premises, but must be maintained

in the State of Illinois.  However, all original invoices or copies

of those invoices

covering purchases of tobacco

products must be retained on the licensed premises for a period of 90 days

after purchase, unless the Department has granted a waiver in response to a

written request in cases

in which

records are kept at a central business

location within the State of Illinois.

[35 ILCS 143/10-35(b)]  Prior to

removing the books and records from the licensed premises, the retailer shall

notify the Department that the books and records will be kept at another

location in Illinois and shall identify the location.  Under those

circumstances, books and records may be kept at that location in Illinois, but

the taxpayer shall, within a reasonable time after notification by the

Department, make all pertinent books, records, papers, and documents available

within 30 days at the licensed premises or an agreed upon

location by the Department

for the purpose of inspection and audit as

the Department may deem necessary.

2)

Books and

records may be maintained out of state if access is available electronically

axpayer shall, within a reasonable time after notification by the

Department, make all pertinent books, records, papers, and documents available

within 30 days at the licensed premises or an agreed upon

location by the Department

for the purpose of inspection and audit as

the Department may deem necessary.

2)

Books and

records may be maintained out of state if access is available electronically.

However, all original invoices or copies

of those

invoices

covering purchases of tobacco products must be retained on

the licensed premises for a period of 90 days after purchase, unless the

Department has granted a waiver in response to a written request in cases

in

which

records that are available electronically are maintained out of state.

[35 ILCS 143/10-35(b)]

3)         The Department will grant a written waiver

under subsections (a)(1) and (2) when the following requirements are met by the

retailer:

A)        The retailer submits a letter to the

Department containing:

i)          the retailer's license number and FEIN;

ii)         the address or addresses of the licensed

premises where records are currently maintained;

iii)        the address of the

out-of-State

location where the retailer intends to maintain the

records;

iv)

if the records

are maintained out of State,

an explanation of the process and system

that will enable the Department or its duly authorized employees to

electronically access the records from the licensed premises on demand; and

v)         an acknowledgement by the retailer that the

Department, upon 30 days written notice, may revoke the waiver of the retailer

for one or more licensed premises if the retailer:

●

fails

to provide electronic access in accordance with the requirements of the written

waiver;

●

transfers

or sells the licensed premises to another person; or

●

changes

the process or system for providing access to the records electronically

he retailer that the

Department, upon 30 days written notice, may revoke the waiver of the retailer

for one or more licensed premises if the retailer:

●

fails

to provide electronic access in accordance with the requirements of the written

waiver;

●

transfers

or sells the licensed premises to another person; or

●

changes

the process or system for providing access to the records electronically.

B)        For books and records maintained out of

state, the Department is given access electronically to accurate records of

tobacco products held, purchased, sold, or otherwise disposed of; invoices;

bills of lading; sales records; copies of bills of sale, returns, and other

pertinent papers; and documents relating to the purchase, sale, or disposition

of tobacco products kept at the licensed premises in the normal course of

business at the time of the request; and

C)        For books and records maintained out of

state, the Department has tested the process and system from the licensed

premises and verified that the Department and its duly authorized employees

have access electronically to the required records from the licensed premises

on demand.

b)

Books, records, papers, and documents

that are required by

the

Act to be kept

shall

be kept in the English language, and

shall, at all times during

the usual business hours of the day, be subject to inspection by the Department

or its duly authorized agents and employees.  The books, records, papers, and

documents for any period with respect to which the Department is authorized to

issue a notice of tax liability shall be preserved until the expiration of that

period

, which is 3 to 3½ years for filed returns

.

[35 ILCS 143/10-35(c)]

c)

Whenever any

retailer

obtains tobacco products from an unlicensed

in-state or out-of-state distributor or person, a prima facie presumption shall

arise that the tax imposed by

the

Act on such tobacco products has not

been paid in violation of

the

Act

ce of tax liability shall be preserved until the expiration of that

period

, which is 3 to 3½ years for filed returns

.

[35 ILCS 143/10-35(c)]

c)

Whenever any

retailer

obtains tobacco products from an unlicensed

in-state or out-of-state distributor or person, a prima facie presumption shall

arise that the tax imposed by

the

Act on such tobacco products has not

been paid in violation of

the

Act.  Invoices or other documents kept in

the normal course of business in the possession of a person reflecting

purchases of tobacco products from an unlicensed in-state or out-of-state

distributor or person or invoices or other documents kept in the normal course

of business obtained by the Department from in-state or out-of-state

distributors or persons, are sufficient to raise the presumption that the tax

imposed by

the

Act has not been paid.  If a presumption is raised, the

Department may assess tax, penalty, and interest on the tobacco products.

[35 ILCS 143/10-38]

d)

Every

retailer

who

purchases tobacco products for resale for shipment into Illinois from a point

outside Illinois shall procure invoices in duplicate covering each shipment and

shall make the invoices available for inspection upon demand by a duly

authorized employee of the Department, and shall, if the Department so

requires, furnish one copy of each invoice to the Department at the time of

filing the return required by

the

Act.

[35 ILCS 143/10-40]

e)         Every retailer who purchases

rolls, made wholly or in part of tobacco, when those

rolls have an integrated cellulose acetate filter and a wrapper or cover that

is made in whole or in part of tobacco and the rolls are contained in packages

of 20 or 25, shall procure an invoice from the seller that states whether the

rolls weigh less than 4 pounds per thousand or weigh 4 pounds or more per

thousand

y retailer who purchases

rolls, made wholly or in part of tobacco, when those

rolls have an integrated cellulose acetate filter and a wrapper or cover that

is made in whole or in part of tobacco and the rolls are contained in packages

of 20 or 25, shall procure an invoice from the seller that states whether the

rolls weigh less than 4 pounds per thousand or weigh 4 pounds or more per

thousand.  If a person fails to produce an invoice for inspection by the

Department upon request that states whether the rolls weigh less than 4 pounds

per thousand or weigh 4 pounds or more per thousand, a prima facie presumption

shall arise that the rolls weigh less than 4 pounds per thousand.  If the rolls

do not contain a tax stamp in accordance with Section 10-10 of the Act, the

rolls are contraband and subject to seizure and forfeiture.

f)

The

Department may, after notice and a hearing, revoke, cancel, or suspend the

license of any retailer who fails to keep books and records as required under

the

Act,

fails to make books and records available for inspection upon demand by a duly

authorized employee of the Department, or violates this

Section

. The

notice shall specify the alleged violation or violations upon which the

revocation, cancellation, or suspension proceeding is based.

[35 ILCS 143/10-25]

Any retailer aggrieved by any decision of the Department under this

Section may, within 30 days after notice of the decision, protest and request a

hearing.  Upon receiving a request for a hearing, the Department shall give

notice in writing to the retailer requesting the hearing that contains a

statement of the charges preferred against the retailer and that states the

time and place fixed for the hearing.  The Department shall hold the hearing in

conformity with the provisions of the Act and then issue its final

administrative decision in the matter to the retailer

uest for a hearing, the Department shall give

notice in writing to the retailer requesting the hearing that contains a

statement of the charges preferred against the retailer and that states the

time and place fixed for the hearing.  The Department shall hold the hearing in

conformity with the provisions of the Act and then issue its final

administrative decision in the matter to the retailer.  In the absence of a

protest and request for a hearing within 30 days, the Department's decision

shall become final without any further determination being made or notice

given.