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The ST-556 form is an essential document for businesses selling certain types of items in Illinois that require titling or registration by state agencies. This includes vehicles, watercraft, aircraft, trailers, and mobile homes. If you engage in retail sales of these items, you must file this form to report each transaction, even if no sales tax is due. It is important to note that if you are selling items for lease, a different form, the ST-556-LSE, is required. The ST-556 form also provides specific instructions for leasing companies that sell items at the end of a lease. When completing the form, you need to provide details such as the purchaser's name and address, a description of the item sold, and the date of delivery. Mistakes made on preprinted forms should be corrected by marking them as void and retained for your records. Additionally, various exemptions exist for nonresident purchasers and sales to exempt organizations, which must be documented appropriately. Filing can be done electronically through MyTax Illinois or via preprinted paper forms, which can be requested from the Illinois Department of Revenue. Understanding the requirements and procedures of the ST-556 form is crucial for compliance and avoiding potential penalties for unreported transactions.
Things to Know About This Form
Who must file Form ST-556?
Anyone selling items at retail in Illinois that require titling or registration by a state agency must file Form ST-556. This includes vehicles, watercraft, aircraft, trailers, and mobile homes. If the item is being sold for lease, do not use Form ST-556; instead, use Form ST-556-LSE. However, leasing companies that sell these items at the end of a lease must file Form ST-556, following specific instructions for leasing companies.
Do I need to file Form ST-556 if no tax is due?
Yes, it is essential to file Form ST-556 even if no tax is due. Any sale of items that require titling or registration in Illinois must be reported. Failing to file this form can lead to penalties for each unreported transaction, regardless of whether tax is owed.
How can I file Form ST-556?
You can file Form ST-556 electronically through MyTax Illinois at mytax.illinois.gov. The Illinois Department of Revenue also provides preprinted paper forms in limited quantities. To request these forms, you can call the Central Registration Division at 217-785-3707 or use MyTax Illinois. Preprinted forms include information specific to your business locations, making the filing process more straightforward.
What should I do if I make a mistake while filling out a preprinted paper form?
If you notice an error on a preprinted paper Form ST-556, write “VOID” across the form and keep it in your records for at least 42 months. Do not send the voided form to the Illinois Department of Revenue. This helps maintain a clear record of your filings without creating confusion.
What if I need help with Form ST-556?
If you require assistance, you can call the Illinois Department of Revenue at 1-800-732-8866 or 217-782-3336. For those using TDD, the number is 1-800-544-5304. Additionally, you can find resources and information on their website at tax.illinois.gov, which may provide further clarification on any questions you have.
What constitutes a qualified trade-in when filling out Form ST-556?
A qualified trade-in is an item given by the purchaser to reduce the selling price of the new item. It must be something you are allowed to subtract from the selling price and must be an item you are in the business of selling. For example, if you sell both boats and cars, you can apply a boat trade-in against a car purchase. However, if you only sell cars, a boat trade-in would not qualify. Additionally, for sales on or after January 1, 2020, the trade-in credit for first division motor vehicles is capped at $10,000.
Key takeaways
- Filing Requirement: If you sell items in Illinois that require titling or registration, such as vehicles or trailers, you must file Form ST-556, even if no tax is due.
- Electronic Filing: You can file Form ST-556 electronically through MyTax Illinois or request preprinted paper forms by calling the Central Registration Division.
- Correction Process: If you make a mistake on a preprinted form, write "VOID" across it and keep it for your records for at least 42 months; do not submit it.
- Trade-In Credit: When claiming a trade-in, you can only credit up to $10,000 for a first division motor vehicle. Ensure proper documentation is maintained.
- Exemptions: If selling to a nonresident or an exempt organization, check the appropriate box and provide necessary documentation to support the exemption.
- Tax Calculation: Calculate the tax based on the selling price, including any applicable fees, and ensure to report the correct tax rate based on the sale location.
Common mistakes
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Incorrect Purchaser Information: Many people fail to ensure that the purchaser's name and address on the form match exactly with the title or registration application. This can lead to processing delays or rejection of the form.
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Improper Item Description: It's crucial to check the right box (A – E) for the type of item sold. Some individuals skip this step or check the wrong box, which can cause confusion and errors in tax calculations.
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Missing Delivery Date: Entering the date of delivery is essential. Some filers forget to include this date, leading to potential late fees since the return is due 20 days after delivery.
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Ignoring Trade-In Details: If a trade-in is claimed, it's important to provide all required details about the traded-in item. Failing to do so can result in incorrect tax calculations or missed credits.
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Neglecting Signatures: Both the seller and all purchasers must sign the return. Omitting signatures is a common mistake that can delay processing and lead to penalties.
How to Fill Out St 556 Illinois
Completing the St 556 Illinois form is essential for reporting retail sales of items that require titling or registration in Illinois. Follow these steps carefully to ensure accuracy and compliance with state regulations.
- Enter the purchaser’s name and address. Ensure it matches the title or registration application.
- Describe the item sold. Select the appropriate box (A – E) for the item type. If none apply, check box F and specify the item. Indicate whether the item is new or used, and provide its identification number, year, make, body style, and model.
- Enter the date of delivery. This is the date the purchaser took possession of the item.
- If applicable, describe the trade-in. Enter the type of item traded in, along with its identification number, year, make, body style, and model.
- Indicate if the sale is exempt or to a nonresident. Check the appropriate box (A – F) and complete Section 6 as needed.
- Enter the selling price in Section 6, including all applicable costs. Round to the nearest dollar.
- If a trade-in was claimed, enter the total trade-in credit. Remember, it cannot exceed $10,000 for first division motor vehicles.
- Subtract Line 2 from Line 1 to determine the taxable amount.
- Calculate the tax due based on your business location or the purchaser’s state tax rate, as applicable.
- Complete any additional tax calculations based on the purchaser's location if necessary.
- Sign the return. Both the seller and all purchasers must sign, confirming the accuracy of the information provided.
Once completed, ensure you submit the form within the required timeframe to avoid penalties. If you have any questions during the process, don't hesitate to reach out for assistance.
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