Section 432.170  Imposition of Tax; Returns

a)         There shall be paid to the Department 5% of the gross proceeds from the sale of pull tabs (Section 5 of the Act).  Gross proceeds includes the total receipts, in whatever form, before winning tickets are paid. "Gross proceeds" expressly includes the prize value of winning pull tab tickets which are exchanged for additional pull tabs rather than for cash. "Gross proceeds" should be distinguished from "net proceeds", which is the amount left after winning tickets are paid.

b)         Payment of tax must be made by money order or certified check (Section 5 of the Act).  For regular licensees payment must be received within 20 days after the end of each calendar quarter (i.e. by April 20, July 20, October 20, and January 20).  For limited licensees payment must be received within 20 days after the license expires.

c)         Each tax payment must be accompanied by a return on forms provided by the Department.  The return shall state the number of days on which pull tabs were sold, the gross proceeds from the sale of pull tabs, the name and supplier's license number of all suppliers from whom the regular or limited licensee obtained pull tabs during the quarter, and any other information requested by the Department relating to books or records which the regular or limited licensee is required to maintain.

d)         A return must be filed as provided in subsection (c) above even if no tax is due.  The return shall state that no pull tabs were sold during the quarter covered by the return.

e)         Regular and limited licensees should be aware that they may be subject to federal excise tax liability on the proceeds from the sale of pull tabs. Licensees should contact the nearest office of the United States Internal Revenue Service for more information.

f)         Any officer or employee of any corporation subject to the provisions of the Act who has the control, supervision or responsibility of filing returns and making payment of the amount of tax imposed by the Act and who willfully fails to file such return or to make such payment to the Department or willfully attempts in any other manner to evade or defeat the tax shall be personally liable to a penalty equal to the total amount of tax evaded, including interest and penalties thereon; and the personal liability of such officer or employee shall survive the dissolution of the corporation. (Section 13½ of the Retailers' Occupation Tax Act, Ill. Rev. Stat. 1987, ch. 120, par. 452½).