Illinois DOR Issues General Information Letter on Out-of-State Company’s Sales Tax Nexus Status After Acquisition

The Illinois Department of Revenue (DOR) July 27 issued a general information letter regarding Taxpayer’s sales and use tax nexus status. Taxpayer was located out-of-state. Another company, located in the state, purchased Taxpayer. The purchasing company had a separate Federal Employer Identification Number. Taxpayer inquired whether the acquisition gave Taxpayer sales tax nexus by affiliation or it fell into the “standard” rules for establishing nexus. The DOR stated that Taxpayer didn’t provide sufficient information regarding the nature of the acquisition to enable the DOR to provide any opinion. However, if the companies were separate legal entities, each company would independently ...