86 Ill. Adm. Code 130.810 — Records Required to Support Deductions

# Records Required to Support Deductions

TITLE 86: REVENUE CHAPTER I: DEPARTMENT OF REVENUE PART 130 RETAILERS' OCCUPATION TAX SECTION 130.810 RECORDS REQUIRED TO SUPPORT DEDUCTIONS

Section 130.810 Records Required to Support Deductions a) Where the nature of a business is such that charge and time sales are made, or where the nature of the business is such that a portion of its sales: are for resale; are within the protection of the Commerce Clause of the Constitution of the United States; consist of services; are made to any corporation, society, association, foundation, or institution organized and operated exclusively for charitable, religious, or educational purposes; are made to a governmental body; or are exempt from the retailers' occupation tax on some other ground, then such records as will clearly indicate the information required in filing returns must be kept. b) To support deductions made on the tax return form, as authorized under the Retailers' Occupation Tax Act ("Act"), on account of receipts: from isolated or occasional sales of tangible personal property; from sales of tangible personal property for resale; from sales of tangible personal property made within the protection of the Commerce Clause of the Constitution of the United States; from sales made to any corporation, society, association, foundation, or institution organized and operated exclusively for charitable, religious, or educational purposes; from sales made to any governmental body; or on any other ground, entries in any books, records, or other pertinent papers or documents of the taxpayer in relation thereto shall be in detail sufficient to show:

1) the name and address of the taxpayer's customer in each such transaction;

2) the character of every such transaction (e.g., whether it is a sale for resale, a sale made within the protection of the Commerce Clause of the Constitution of the United States, an isolated or occasional sale, etc.);

3) the date of every such transaction;

4) the amount of receipts realized from every such transaction; and 5) such other information as may be necessary to establish the nontaxable character of such transaction under the Act. c) Except in the case of a sale to a purchaser who will always resell and deliver the property to its customers outside Illinois, any seller claiming to have made a nontaxable sale for resale in some form as tangible personal property shall also keep a Certificate of Resale from the purchaser that contains the information required under Section 130.1405 of this Part. The failure to obtain and keep a Certificate of Resale shall create a presumption that the sale was not a sale for resale. The seller may, however, present other documentary evidence to overcome this presumption (See Section 86 Ill. Adm. Code 130.1405(d)). (Source: Amended at 49 Ill. Reg. 2107, effective February 5, 2025)

Section 130.810 Records Required to Support Deductions

a) Where the nature of a business is such that charge and time sales are made, or where the nature of the business is such that a portion of its sales: are for resale; are within the protection of the Commerce Clause of the Constitution of the United States; consist of services; are made to any corporation, society, association, foundation, or institution organized and operated exclusively for charitable, religious, or educational purposes; are made to a governmental body; or are exempt from the retailers' occupation tax on some other ground, then such records as will clearly indicate the information required in filing returns must be kept.

b) To support deductions made on the tax return form, as authorized under the Retailers' Occupation Tax Act ("Act"), on account of receipts: from isolated or occasional sales of tangible personal property; from sales of tangible personal property for resale; from sales of tangible personal property made within the protection of the Commerce Clause of the Constitution of the United States; from sales made to any corporation, society, association, foundation, or institution organized and operated exclusively for charitable, religious, or educational purposes; from sales made to any governmental body; or on any other ground, entries in any books, records, or other pertinent papers or documents of the taxpayer in relation thereto shall be in detail sufficient to show:

1) the name and address of the taxpayer's customer in each such transaction;

2) the character of every such transaction (e.g., whether it is a sale for resale, a sale made within the protection of the Commerce Clause of the Constitution of the United States, an isolated or occasional sale, etc.);

3) the date of every such transaction;

4) the amount of receipts realized from every such transaction; and

5) such other information as may be necessary to establish the nontaxable character of such transaction under the Act.

c) Except in the case of a sale to a purchaser who will always resell and deliver the property to its customers outside Illinois, any seller claiming to have made a nontaxable sale for resale in some form as tangible personal property shall also keep a Certificate of Resale from the purchaser that contains the information required under Section 130.1405 of this Part. The failure to obtain and keep a Certificate of Resale shall create a presumption that the sale was not a sale for resale. The seller may, however, present other documentary evidence to overcome this presumption (See Section 86 Ill. Adm. Code 130.1405(d)).

(Source: Amended at 49 Ill. Reg. 2107, effective February 5, 2025)