Form St 07-25 - Sales Tax - 2007 Page 4
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11not ask these salesmen whether a trade-in deduction was warranted on the 556 when the
transaction involved a leased vehicle. Tr. pp. 15-16, 46-47.
12. Taxpayer was never told, nor did he ask anyone, when and under what circumstances
to take deductions for trade-ins associated with a lease transaction. He just prepared the
556’s based upon his own past personal car purchase/lease experience. Tr. pp. 47-48.
13. Taxpayer was not advised that the allowance of a trade-in deduction for a leased
transaction is different from the availability of such a deduction for non-leased
transactions until the Department conducted its audit. Tr. p. 44.
14. Taxpayer utilized a CPA to prepare the Corporation’s income and payroll taxes as
well as its financial statements. Tr. p. 14.
15. The Corporation’s CPA neither prepared the 556’s nor advised how such forms were
to be prepared. Taxpayer did not seek the CPA’s advice, instruction or review as to how
the 556’s were to be prepared until the Department’s audit identified a problem with how
trade-ins associated with leased vehicles were accounted for on the 556’s. Tr. pp. 14-15,
50-53.
16. Taxpayer neither contacted nor obtained publications from the Department on how to
prepare the 556’s and account for trade-ins with regard to leased vehicles. Tr. 51-52.
CONCLUSIONS OF LAW:
Section 3-7 of the Uniform Penalty and Interest Act provides in part as follows:
Any officer or employee of any taxpayer subject to the
provisions of a tax Act administered by the Department
who has the control, supervision or responsibility of filing
returns and making payment of the amount of any trust tax
imposed in accordance with that Act and who wilfully fails
to file the return or make the payment to the Department or
wilfully attempts in any other manner to evade or defeat the
tax shall be personally liable for a penalty equal to the total
amount of tax unpaid by the taxpayer including interest and
penalties thereon. 35 ILCS 735/3-7(a).
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