Details for Illinois tobacco-products security

Current section 10-20(a) excepts a first-time distributor-license applicant and a distributor with less than $50,000 of tax liability in the preceding year from its ordinary bond requirement. Revenue's general tobacco page summarizes the calculation more broadly; the current REG-1-C schedule tells applicants to contact the registration-bond unit. Obtain an account-specific direction before purchasing security you may not need.

Where that ordinary requirement applies, Revenue sets the sum at no more than three times average monthly tax liability or $50,000, whichever is lower. The Act separately requires a reapplicant after license revocation to provide three times the average monthly liability calculated immediately before revocation. Have Revenue identify which provision and amount apply to you.

Do not copy the $2,500 cigarette-distributor or cigarette-machine amount from another part of REG-1-C. Tobacco-products classification includes products and activities distinct from the cigarette account. Describe what you sell, who receives it and whether tax was paid by the supplier; retail operations may require separate registration.

A separate distributor application and required bond apply to each place of business. The Act requires security throughout the licensed period except for its release provisions. It directs release within ninety days after qualifying prior continuous compliance, or qualifying closure with a final return and payment of the remaining liability Revenue determines. Arrange the Department's release rather than assuming the license date cancels the instrument.

REG-4-A requires a power of attorney and has principal/surety seals and signature fields to complete for the applicant's business structure. Its surety-cancellation provision uses written notice filed with Revenue by registered or certified mail and a ninety-day period, preserving earlier and intervening liability. Do not substitute a thirty- or sixty-day notice from another tax bond.

Purchase Now opens Propeller's Illinois tobacco-products application in a new tab. Match Revenue's request, legal applicant, location, tax type and approved sum, then complete state registration and security submission separately. Provider payment does not determine an exemption or issue the distributor's license.