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The CBS-1 form, officially known as the Notice of Sale, Purchase, or Transfer of Business Assets, is a crucial document for businesses in Illinois. This form must be completed when a significant portion of business assets is sold or transferred outside the usual course of business. Specifically, it applies to the sale or transfer of stock of goods, furniture, fixtures, machinery, equipment, or real property. Timeliness is essential; the form must be submitted within ten days of the transaction date to ensure processing. The purchaser or transferee may assume liability for any debts incurred by the seller if the form is not filed correctly. The CBS-1 form requires detailed identification of the business involved, including its name, address, and tax identification numbers. It also necessitates information about both the seller and the purchaser, including their attorneys if applicable. Additionally, the form prompts users to describe the terms of the sale, including the selling price and payment arrangements. Signatures and contact information are required to validate the submission. It is important to note that the Illinois Department of Revenue mandates reporting all business sales, and failure to comply may result in significant tax liabilities for the purchaser or transferee. For further assistance, individuals can contact the Chicago office of the Illinois Department of Revenue during business hours.
Things to Know About This Form
What is the CBS-1 form and when do I need to use it?
The CBS-1 form is a notice that must be completed when a business sells or transfers a significant portion of its assets. This includes stock of goods, furniture, fixtures, machinery, equipment, or real property. If the sale or transfer happens outside the usual course of business, it is essential to file this form. Remember, the form must be submitted within 10 days of the sale date to be processed. If you miss this deadline, your form will not be accepted.
Who is responsible for completing the CBS-1 form?
The responsibility to complete the CBS-1 form falls on either the seller or the purchaser. If you are the seller, you should ensure that the form is filled out accurately and submitted on time. If you are the purchaser, you may also need to complete the form to protect yourself from any potential debts incurred by the seller. It's important for both parties to understand their roles in this process.
What information do I need to provide on the CBS-1 form?
The CBS-1 form requires various details about the business being sold or transferred. This includes the business name, tax identification numbers, addresses, and contact information for both the seller and purchaser. Additionally, you will need to specify the selling price, the date of the sale, and the terms of the sale or transfer. Providing accurate information is crucial to avoid any complications.
What happens if I do not submit the CBS-1 form?
If you fail to submit the CBS-1 form, the purchaser or transferee may become personally liable for any debts owed by the seller. This means that without proper documentation, you could face unexpected financial responsibilities. It is highly recommended to complete and submit the form to avoid any potential issues in the future.
How can I submit the CBS-1 form?
You can submit the CBS-1 form by mail or fax. To mail it, send the completed form along with a copy of the sales contract and financing agreement to the Bulk Sales Unit at the Illinois Department of Revenue in Chicago. If you prefer to fax your submission, you can send the form and sales contract to the designated fax number. Ensure that all information is complete to facilitate processing.
Key takeaways
Filling out the CBS-1 form in Illinois is an important step when transferring business assets. Here are some key takeaways to keep in mind:
- Timeliness is Crucial: You must submit the CBS-1 form within 10 days of the sale date. Late submissions will not be processed.
- Complete Information: Ensure that all required fields, such as business name, tax identification numbers, and addresses, are filled out accurately.
- Liability Awareness: The purchaser or transferee may be held responsible for any debts incurred by the seller, making it essential to understand the financial obligations involved.
- Contact for Help: If you have questions or need assistance, you can call the Chicago office during business hours at 312-814-3063.
- Mailing Instructions: Send the completed form along with a copy of the sales contract and financing agreement to the designated address in Chicago.
- Fax Option: You also have the option to fax your form and sales contract to 312-793-3841 for quicker processing.
- Legal Compliance: Reporting all sales of businesses is required by law. Failing to provide this information could lead to personal liability for taxes owed by the seller.
Common mistakes
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Missing Deadlines: Submitting the form more than 10 days after the sale date will result in non-processing. Many people overlook this important timeline.
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Incorrect Business Identification: Failing to accurately fill in the business name and identification numbers can lead to processing delays. Ensure all information matches official documents.
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Omitting Contact Information: Not providing complete contact details for both the seller and purchaser can hinder communication. Always include accurate phone numbers and addresses.
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Inaccurate Sale Date: Entering the wrong date for the sale can create complications. Double-check the date to ensure it reflects the actual transaction.
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Improper Payment Information: Not detailing the terms of sale or transfer correctly, including down payment and monthly payment amounts, can lead to misunderstandings.
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Neglecting Excise Tax Questions: Failing to answer whether excise taxes are applicable can result in future liabilities. Be thorough when addressing this section.
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Signature Issues: The form must be signed by the person submitting it. Missing a signature can delay processing. Always ensure this step is completed.
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Incomplete Attorney Information: If an attorney is involved, their details must be fully provided. Omitting this can complicate legal proceedings.
How to Fill Out Cbs 1 Illinois
Completing the CBS-1 form is essential for reporting the sale or transfer of business assets to the Illinois Department of Revenue. Ensure that you fill out this form accurately and submit it within the specified time frame to avoid any potential liabilities. Follow these steps carefully to complete the form.
- Gather necessary information about your business, including the business name, Illinois business tax number (IBT no.), street address, federal employer identification number (FEIN), and social security number if applicable.
- Fill out Part 1 by entering the business name in the first line, followed by the IBT number or account identification number in the next line. Provide the street address, FEIN, and social security number in the subsequent lines.
- Complete Part 2, which identifies the seller or transferor. Enter the seller's name and daytime phone number, followed by the home or mailing address. Include the name and daytime phone number of the seller's or transferor's attorney.
- In Part 3, identify the purchaser or transferee. Provide their name, IBT number, and FEIN. Fill in their home or mailing address, along with the name and daytime phone number of the purchaser's or transferee's attorney.
- Move to Part 4 and enter the date the business was or will be sold or transferred. Specify the selling price or the value of the business assets transferred. Indicate whether the entire business was sold or transferred and, if not, complete the relevant line.
- State whether the seller's or transferee's registration numbers with the department will remain active. If not, provide the date to be discontinued.
- Describe the terms of sale or transfer. Mark the appropriate box for cash sale, contract sale, or other financing. If it’s a contract sale, provide details such as the down payment amount, monthly payment amount, and the date of the last payment.
- Sign the form in Part 5. Print or type your name, provide your daytime phone number, and sign the form with the date. Include your mailing address.
- Attach a copy of the sales contract and financing agreement to your completed CBS-1 form.
- Submit the form by mailing it to the specified address or faxing it as indicated.
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