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Local Government

Confidentiality of Sales Tax

By law, all information received by the Illinois Department of Revenue (IDOR) from sales tax returns is confidential. We cannot release information regarding individual taxpayer (i.e., retailer) reporting. However, Illinois law does allow a local government to receive certain confidential information, by request, provided the proper forms and agreements are completed by the local government or, in some instances, by the individual taxpayers themselves.

Reciprocal Agreement for Exchange of Confidential Information

A municipality can obtain the most comprehensive information about individual taxpayers by use of a Reciprocal Agreement on Exchange of Information. This is an agreement between the municipality and IDOR that allows the municipality to request the net revenue distributed to it from IDOR on taxpayers doing business within its taxing jurisdiction. The information exchanged is directly related to the municipality’s local share of tax received under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers’ Occupation Tax Act, and, if applicable, any locally imposed retailers’ occupation tax or service occupation tax.

Effective January 1, 2015, Illinois law allows all municipalities in the state to enter into a reciprocal agreement with the Department to request confidential information on retail sales made within their taxing jurisdictions. Previously, the law generally allowed only those municipalities that had imposed a Home Rule Sales Tax or Non-Home Rule Sales Tax to enter into such an agreement. County governments are not eligible to enter into an agreement.

Authorization to Release Sales Tax Information to Local Governments

Individual taxpayers (i.e., retailers) also can authorize IDOR to provide certain confidential sales tax information to a local government (i.e., a municipality or county) through an Authorization to Release Sales Tax Information to Local Governments. This form is signed by the owner or authorized officer of a business and authorizes IDOR to release to the local government information regarding the net revenue distributed to that local government from the taxpayer. This net revenue is directly related to the local government’s share of tax received under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers’ Occupation Tax Act, and, if applicable, any locally imposed retailers’ occupation tax or service occupation tax.

The individual taxpayer can indicate that the information to be sent to the local government be for a prior period up to but no earlier than three years from the current allocation period through a future period up to but no later than December 31, 2099.

The taxpayer listed on the authorization must be registered to make retail sales at a permanent location site. The taxpayer cannot be registered to make retail sales as a changing location site or temporary location site.

Statistical Grouping Report

A local government can also request a statistical grouping report. This is a report listing four or more comparable businesses within a local government’s taxing jurisdiction that provides the aggregate total of the net revenue distributed to their local government. The net revenue is directly related to the local government’s share of tax received under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers’ Occupation Tax Act, and, if applicable, any locally imposed retailers’ occupation tax or service occupation tax. The businesses must be comparable to make available reasonable statistics by grouping the contents of returns so that the information for any individual taxpayer is not disclosed. IDOR will review the list to determine if the businesses are comparable, and the aggregate total will not disclose the reporting from an individual taxpayer. If the report does not meet the criteria, IDOR cannot release the report.

Examples of statistical grouping reports might be a request for your top 10 sales tax contributors or a group of businesses located in a shopping area within your taxing jurisdiction.

What information do you need to provide in your request to IDOR for a statistical grouping report?

A request for a statistical grouping report must contain the following:

  • the type of report (Top 10 taxpayers, shopping center group, etc.)
  • the Illinois Account ID of each taxpayer;
  • the taxpayer’s business name and address; and
  • the time period the report will cover. (Please note IDOR can only provide information for the last three years from the current allocation period.)

Who is eligible to request statistical grouping reports?

A request for a statistical grouping report can be made by:

  • county governments; and
  • municipal governments that were not eligible to receive confidential information under a Reciprocal Agreement for Exchange of Confidential Information prior to January 1, 2015 (for periods prior to January 1, 2015).

Quarterly Financial Report

A quarterly financial report provides the net revenue distributed, by month, to a county government on a specific taxpayer or taxpayers. The net revenue is directly related to the county government’s local share of tax received under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers’ Occupation Tax Act, and, if applicable, any locally imposed retailers’ occupation tax or service occupation tax. The individual taxpayer can indicate that the information to be sent to the local government be for a prior period up to but no earlier than three years from the current allocation period through a future period up to but no later than December 31, 2099.

Who is eligible to receive quarterly financial reports?

County governments are eligible to receive quarterly financial reports.

How can we receive quarterly financial reports?

The individual taxpayer must authorize IDOR in writing to release the individual taxpayer’s net revenue to the county government by completing Form PTAX 1002-21, Authorization to Release Sales Tax Information to Local Governments.

The taxpayer listed on the authorization must be registered to make retail sales at a permanent location site. The taxpayer cannot be registered to make retail sales for a changing location site or temporary location site.

The reports are automatically generated during the following months:

  • May for the January through March collection periods;
  • August for the April through June collection periods;
  • November for the July through September collection periods; and
  • the following February for the October through December collection period.

Quarterly financial reports will no longer be generated once the ending time reported on Form PTAX-1002-21 has expired.

How do you contact us?

LOCAL TAX ALLOCATION DIVISION (3-500)
ILLINOIS DEPARTMENT OF REVENUE
101 WEST JEFFERSON STREET
SPRINGFIELD IL 62702

Phone: 217 785-6518
Fax: 217 524-0526
Email: rev.localtax@illinois.gov

Statutory Reference: 35 ILCS 120/11