Form St 07-25 - Sales Tax - 2007 Page 9
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11Besides his failure to seek the assistance of a tax professional on the proper
completion of 556’s, Taxpayer also failed to seek the assistance of the Department. He
admits that he did not contact the Department for advice regarding how to properly
account for trade-in deductions or even inquire whether the Department had publications
on the subject. If Taxpayer had contacted the Department, he could have availed himself
of a private letter ruling, pursuant to the Illinois Administrative Code, wherein “specific
taxpayer inquiries concerning the application of a tax statute or rule to a particular fact
situation[s]” are issued. 2 Ill. Adm. Code 1200.110. But Taxpayer did not even seek any
oral advice from the Department or the existence of any written materials, let alone avail
himself of positing written questions on how to account for trade-ins on the 556.
Taxpayer instead chose to rely on others, outside of his business, as to the type of
information to place on the 556’s but never asked the propriety of or basis for the
information placed on the 556’s, specifically for trade-in deductions. While Taxpayer
sought advice from title clerks of other businesses with regard to the 556’s, it was not on
this particular point of how and when to take trade-in deductions. Taxpayer states he had
salesmen who were experienced with these forms but does not state that he sought their
advice on how to account for trade-ins on the 556’s nor even checked to see that they
were, in fact, completing the 556’s correctly, inclusive of their treatment of trade-ins. He
also states that his clerks and receptionist also completed the 556’s but he does not
indicate that he inquired of them as to the treatment they gave trade-ins on the 556’s.
Taxpayer states “[n]o one had ever told me that [a] leased vehicle was looked upon
differently than a financed vehicle.” Tr. p. 49. He states he just assumed the treatment of
leased and financed vehicles were the same. However, a reasonable and prudent manager
and businessman, with a management degree, should not assume nor await the word of
others as to what he is to do with regard to his own business. This is particularly true
when the issue is of significant importance to a business as in this case where trade-in
transactions occurred with regularity.
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