Illinois DOR Clarifies Marketplace Facilitator Rules for Software Providers

The Illinois Department of Revenue (DOR) issued a general information letter addressing marketplace facilitator rules for software providers. The Department determined that companies that provide software platforms with payment processing functionality are likely to be considered marketplace facilitators under Illinois law, even if they do not directly process or control payments. The Department emphasized that the broad statutory language around terms like “facilitates,” “indirectly,” “arrangement,” and “provision” allows marketplace facilitator requirements to apply to various e-commerce business models beyond just those where the facilitator directly handles payments and specifically noted that providing functionality for connection to payment mechanisms meets the ...