Form It 04-3 - Recommendation Form For Disposition (Page 4 of 5) in pdf

Form It 04-3 - Recommendation Form For Disposition Page 4

State on October 30, 1998. Although the taxpayer’s owner testified that the certificate

shows that the taxpayer was authorized to do business in Illinois since July 1, 1984 (Tr. p.

13), this testimony is not accurate. It is clear from the face of the certificate that the

reference on the certificate to July 1, 1984 is a reference to when the Business

Corporation Act of Illinois became effective.

The effective date for the certificate is, in

fact, the date that it was issued, October 30, 1998. Because the taxpayer did not include

the application for the certificate as part of its evidence, this is the only reasonable

conclusion I can make based on the language that is on the face of the certificate.

Furthermore, there is no evidence indicating that the taxpayer registered with the

Department during the years 1988 through 1997.

From 1988 through 1997, the taxpayer did not register with either the State of

Illinois or the Department of Revenue. The taxpayer did not file Illinois income tax

returns for those years until 2002. The taxpayer has not indicated that it amended its

Iowa income tax returns for those years. The oral testimony of its owner was the only

evidence presented by the taxpayer to show that it conducted business in Illinois from

1988 through 1997. The inconsistency between the testimony concerning the certificate

and the actual certificate warrants a finding that this testimony was not credible. Because

the taxpayer did not present sufficient evidence indicating that it did business in Illinois

during the years 1988 through 1997, it cannot be found that it has overcome the

Department’s prima facie case.

The language on the certificate, in relevant part, is as follows: “Whereas application for certificate of

authority to transact business in this state of ABC, Inc. incorporated under the laws of the state of Iowa has

been filed in the office of the Secretary of State as provided by the Business Corporation Act of Illinois, in

Form It 04-3 - Recommendation Form For Disposition Page 4