Ill. Admin. Code tit. 86, § 660.40 - Credit for Stamps that Are Damaged, Unused, Destroyed or Affixed to Packages of Little Cigars Returned to the Manufacturer
a) When a stamping distributor wishes to
receive credit for stamps that have been affixed to packages of little cigars,
the stamping distributor shall file a claim on a form prescribed by the
Department.
b) If the Department
sends one or more of its representatives to witness the destruction of the
stamps, the Department may charge the stamping distributor for travel expenses,
such as lodging, meals and mileage.
c) If a greater number of stamps in a certain
series of stamps is destroyed than is included in the claim for credit, the
excess number of stamps destroyed in that series of stamps will not be
credited. If a lesser number of stamps in a certain series of stamps is
destroyed than is included in the claim for credit, the actual number of stamps
destroyed in that series will be credited. If stamps are destroyed in a certain
series of stamps not listed in the claim for credit, credit for stamps in that
series will not be made.
d) Claims
for credit for tax stamps will be approved only when the claim indicates that
the packages of little cigars involved are unsalable and are to be shipped by
the claimant in interstate commerce, by a common carrier or through the United
States mails, to a designated consignee outside Illinois, or when the claim
indicates that the packages of little cigars involved are unsalable and are to
be destroyed by the claimant, when the claim indicates that the packages of
little cigars involved have been improperly stamped (e.g., over-stamped,
under-stamped) or when the claimant returns unused or damaged stamps.
e) It is mandatory upon a stamping
distributor to destroy (in the presence of a Department representative or
representatives if the Department so requires) Illinois stamps that are affixed
to packages of little cigars in connection with a claim to the Department for
credit of stamps, if the stamping distributor has improperly stamped packages
of little cigars by affixing Illinois tax stamps in an amount that is
insufficient to evidence full payment of the tax.
f) Claims for credit of tax stamps affixed to
packages of little cigars will not be approved unless the stamping distributor
filing the claim has title to the packages of little cigars covered by the
claim and is carrying Illinois tax-stamped little cigars in his or her
inventories.
g) If a claim
discloses that, subsequent to the destruction of the stamps, the unstamped
packages of little cigars are to be shipped in interstate commerce to a
designated out-of-state consignee, credit for the stamps will not be made
unless and until the stamping distributor submits to the Department, to support
his or her claim, an affidavit from the manufacturer that receives and destroys
the stamps. If an affidavit cannot be obtained, a waybill, freight bill or bill
of lading, issued by a common carrier, or an insurance receipt or registry
receipt issued by the U.S. Postal Service (USPS), or a USPS receipt Form 3817,
proving that the packages of little cigars have actually been shipped by the
stamping distributor in interstate commerce, by common carrier or through the
United States mails, to the out-of-state consignee designated in the claim,
will be accepted.
h) Subsequent to
the destruction of tax stamps affixed to packages of little cigars, credit for
the stamps will not be made if a review of pertinent returns filed by the
stamping distributor reveals that the tax stamps scheduled in the claim have
not been included in the stamping distributor's inventories.
i) In connection with any claim for credit of
Illinois tax stamps, in addition to the types of proof specified, the
Department reserves the right to require additional proof in support of any
claim as may appear to be necessary.
j) If the Department approves a claim for
credit for tax stamps, the Department (subject to the same limitations as those
provided for in Section
660.35 ) may
issue an assignable credit memorandum or refund to the stamping distributor or
the stamping distributor's legal representative. Under no circumstances will a
claim for credit be approved in an amount that exceeds the amount paid by the
stamping distributor for the stamps that are the subject of the
claim.
Notes
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