Instructions for Form ST-556-LSE-X "Amended Transaction Return for Leases" - Illinois

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Illinois Department of Revenue
ST-556-LSE-X
Amended Transaction Return for Leases Instructions
General Information
Who must file Form ST-556-LSE-X?
What is the deadline for filing this form?
The period for which you can claim a credit for an overpayment
You must file Form ST-556-LSE-X if you are a registered retailer who
depends on when you file your Form ST-556-LSE-X. If you file this
files Form ST-556-LSE, Transaction Return for Leases, to report
amended return between January 1 and June 30 of this year, you
sales at retail of items for lease in Illinois and those items are of the
may file a claim for credit for the amounts you overpaid during the
type that must be titled or registered by an agency of Illinois state
current year and previous 36 months. Beginning July 1, you may file
government (i.e., vehicles, watercraft, aircraft, trailers, and mobile
a claim for the amounts you overpaid during the current year and the
homes), and if you need to:
previous 30 months.
• correct your Form ST-556-LSE to pay more tax;
Note: There is no deadline for making additional payments; however,
• request a credit for overpaid tax (Do not file Form ST-556-LSE-X
the longer you wait to pay, the more interest and, when applicable,
for amounts less than $1. Do not use the credit until we notify you
penalty you will owe. For more information about penalties and
that your credit has been approved.);
interest, see Publication 103, Penalties and Interest for Illinois Taxes,
available on our website at tax.illinois.gov.
• respond to a bill or notice; or
What if I have questions?
• make corrections to line items but not change the amount of tax
Call us weekdays between 8:00 a.m. and 4:30 p.m. at 1 800 732-8866
due.
or 217 782-3336. Call our TDD (telecommunications device for the
If you received a notice from us that your original return is
deaf) at 1 800 544-5304.
unprocessable, we cannot process an amended return (claim for
credit) until you respond to the notice.
To what address do I mail my completed return?
Do not file this return if you repossessed an item that must be titled
Mail your completed return to:
ILLINOIS DEPARTMENT OF REVENUE
or registered. Instead, you must file Form ST-557, Claim for Credit
PO BOX 19034
for Repossession of Motor Vehicles, Watercraft, Aircraft, Trailers,
SPRINGFIELD IL 62794-9034
and Mobile Homes.
Specific Instructions
Line 5c: Enter the governmental body’s active Illinois Sales Tax
Everyone must complete Steps 1, 2, and 4. You must also complete
Step 3 if you are changing financial information.
exemption “E” number on the line provided.
Step 1: Identify the return you are amending and
Line 5d: Enter the certificate of authority number on the line
your business
provided. Keep a properly completed Form RUT-7, Rolling Stock
Line 1: Enter the tax return number that appears on your original
Certification, in your records for documentation.
Line 5e: Mark this reason if the sale was exempt for a reason not
Form ST-556-LSE.
identified in Lines 5a through 5d.
Lines 2 through 4: Enter your Illinois account ID number as it
Line 6: Indicate the correct tax basis.
appears on your original Form ST-556-LSE. Also, enter the name
Note: Illinois law requires taxpayers to calculate the tax due
of your business as it appears on your original return. Next, enter a
using the lease signing amount and total lease payments, with no
daytime phone number for your business.
Step 2: Indicate the reason why you are filing an
deduction for trade-ins, when selling for lease first division motor
amended return
vehicles and certain qualifying leased second division motor vehicles.
This requirement regarding the alternate selling price applies
Mark the reason (Lines 1 through 10) that best reflects why you are
only to leases entered into on or after January 1, 2015. The lease
filing an amended return for your original Form ST-556-LSE.
must be a fixed-term lease contract for a period of more than one
Line 5a: Enter on the lines provided the drive-away permit number
year. The qualifying leased second division motor vehicles are those
or out-of-state license plate number and the two-letter state
with a gross vehicle weight rating of 8,000 pounds or less, those of
abbreviation of the lessee’s state of residence. Note that the rules
a van configuration and designed to transport not less than seven
on whether a nonresident purchaser exemption can be claimed
or more than 16 passengers, and those which are self-contained
that apply to sales reported on Form ST-556 (i.e., whether the
and designed or permanently converted to provide living quarters
purchaser’s state gives Illinois residents a nonresident purchaser
for recreational, camping, or travel use and have direct walk-through
exemption on their sales of motor vehicles or trailers that will be titled
access to the living quarters from the driver’s seat. For all other
in Illinois) do not apply in a lease situation. All drive-away leases to
leases, you must use the actual selling price. This includes leases
non-Illinois residents are exempt from Illinois sales tax.
of non-qualifying items and leases of qualifying items under a
Note: Dealers claiming the exemption for a lease to a non-Illinois
lease contract that is not a defined period, including contracts with
resident should keep a copy of the lessee’s valid out-of-state
a defined initial period with the option to continue the lease on a
driver’s license in their records as proof of nonresidency. You also
month-to-month or other basis beyond the defined initial period.
are responsible for obtaining a signed certification documenting the
If, however, a qualifying vehicle is leased for a defined period (e.g.,
lessee’s eligibility for the nonresident purchaser exemption. As a
24, 36, or 48 months) but the contract contains a provision regarding
condition of claiming this exemption, nonresident lessees must certify
the “Return of the Vehicle” or a similar provision that allows for the
that they are not residents of Illinois. See ST-588, Nonresidency
lease to continue for a short period (i.e., 1 to 6 months) but only after
Exemption Certification for Sales and Leases of Motor Vehicles and
the lessee (customer) fails to meet the original terms of the lease
Trailers, available on our website at tax.illinois.gov. Retain this
or only with further agreement by the leasing company, then this
certification in your records as proof that no tax was due on the sale
provision does not disqualify the lease from being eligible for the new
of the specified item.
alternative definition of “selling price.”
Line 5b: Keep a properly completed Form ST-587, Equipment
Lines 7 through 9: Enter the correct information on the lines
Exemption Certificate, in your records for documentation.
provided.
ST-556-LSE-X Instructions (N-01/15)
Page 1 of 3
Illinois Department of Revenue
ST-556-LSE-X
Amended Transaction Return for Leases Instructions
General Information
Who must file Form ST-556-LSE-X?
What is the deadline for filing this form?
The period for which you can claim a credit for an overpayment
You must file Form ST-556-LSE-X if you are a registered retailer who
depends on when you file your Form ST-556-LSE-X. If you file this
files Form ST-556-LSE, Transaction Return for Leases, to report
amended return between January 1 and June 30 of this year, you
sales at retail of items for lease in Illinois and those items are of the
may file a claim for credit for the amounts you overpaid during the
type that must be titled or registered by an agency of Illinois state
current year and previous 36 months. Beginning July 1, you may file
government (i.e., vehicles, watercraft, aircraft, trailers, and mobile
a claim for the amounts you overpaid during the current year and the
homes), and if you need to:
previous 30 months.
• correct your Form ST-556-LSE to pay more tax;
Note: There is no deadline for making additional payments; however,
• request a credit for overpaid tax (Do not file Form ST-556-LSE-X
the longer you wait to pay, the more interest and, when applicable,
for amounts less than $1. Do not use the credit until we notify you
penalty you will owe. For more information about penalties and
that your credit has been approved.);
interest, see Publication 103, Penalties and Interest for Illinois Taxes,
available on our website at tax.illinois.gov.
• respond to a bill or notice; or
What if I have questions?
• make corrections to line items but not change the amount of tax
Call us weekdays between 8:00 a.m. and 4:30 p.m. at 1 800 732-8866
due.
or 217 782-3336. Call our TDD (telecommunications device for the
If you received a notice from us that your original return is
deaf) at 1 800 544-5304.
unprocessable, we cannot process an amended return (claim for
credit) until you respond to the notice.
To what address do I mail my completed return?
Do not file this return if you repossessed an item that must be titled
Mail your completed return to:
ILLINOIS DEPARTMENT OF REVENUE
or registered. Instead, you must file Form ST-557, Claim for Credit
PO BOX 19034
for Repossession of Motor Vehicles, Watercraft, Aircraft, Trailers,
SPRINGFIELD IL 62794-9034
and Mobile Homes.
Specific Instructions
Line 5c: Enter the governmental body’s active Illinois Sales Tax
Everyone must complete Steps 1, 2, and 4. You must also complete
Step 3 if you are changing financial information.
exemption “E” number on the line provided.
Step 1: Identify the return you are amending and
Line 5d: Enter the certificate of authority number on the line
your business
provided. Keep a properly completed Form RUT-7, Rolling Stock
Line 1: Enter the tax return number that appears on your original
Certification, in your records for documentation.
Line 5e: Mark this reason if the sale was exempt for a reason not
Form ST-556-LSE.
identified in Lines 5a through 5d.
Lines 2 through 4: Enter your Illinois account ID number as it
Line 6: Indicate the correct tax basis.
appears on your original Form ST-556-LSE. Also, enter the name
Note: Illinois law requires taxpayers to calculate the tax due
of your business as it appears on your original return. Next, enter a
using the lease signing amount and total lease payments, with no
daytime phone number for your business.
Step 2: Indicate the reason why you are filing an
deduction for trade-ins, when selling for lease first division motor
amended return
vehicles and certain qualifying leased second division motor vehicles.
This requirement regarding the alternate selling price applies
Mark the reason (Lines 1 through 10) that best reflects why you are
only to leases entered into on or after January 1, 2015. The lease
filing an amended return for your original Form ST-556-LSE.
must be a fixed-term lease contract for a period of more than one
Line 5a: Enter on the lines provided the drive-away permit number
year. The qualifying leased second division motor vehicles are those
or out-of-state license plate number and the two-letter state
with a gross vehicle weight rating of 8,000 pounds or less, those of
abbreviation of the lessee’s state of residence. Note that the rules
a van configuration and designed to transport not less than seven
on whether a nonresident purchaser exemption can be claimed
or more than 16 passengers, and those which are self-contained
that apply to sales reported on Form ST-556 (i.e., whether the
and designed or permanently converted to provide living quarters
purchaser’s state gives Illinois residents a nonresident purchaser
for recreational, camping, or travel use and have direct walk-through
exemption on their sales of motor vehicles or trailers that will be titled
access to the living quarters from the driver’s seat. For all other
in Illinois) do not apply in a lease situation. All drive-away leases to
leases, you must use the actual selling price. This includes leases
non-Illinois residents are exempt from Illinois sales tax.
of non-qualifying items and leases of qualifying items under a
Note: Dealers claiming the exemption for a lease to a non-Illinois
lease contract that is not a defined period, including contracts with
resident should keep a copy of the lessee’s valid out-of-state
a defined initial period with the option to continue the lease on a
driver’s license in their records as proof of nonresidency. You also
month-to-month or other basis beyond the defined initial period.
are responsible for obtaining a signed certification documenting the
If, however, a qualifying vehicle is leased for a defined period (e.g.,
lessee’s eligibility for the nonresident purchaser exemption. As a
24, 36, or 48 months) but the contract contains a provision regarding
condition of claiming this exemption, nonresident lessees must certify
the “Return of the Vehicle” or a similar provision that allows for the
that they are not residents of Illinois. See ST-588, Nonresidency
lease to continue for a short period (i.e., 1 to 6 months) but only after
Exemption Certification for Sales and Leases of Motor Vehicles and
the lessee (customer) fails to meet the original terms of the lease
Trailers, available on our website at tax.illinois.gov. Retain this
or only with further agreement by the leasing company, then this
certification in your records as proof that no tax was due on the sale
provision does not disqualify the lease from being eligible for the new
of the specified item.
alternative definition of “selling price.”
Line 5b: Keep a properly completed Form ST-587, Equipment
Lines 7 through 9: Enter the correct information on the lines
Exemption Certificate, in your records for documentation.
provided.
ST-556-LSE-X Instructions (N-01/15)
Page 1 of 3
Line 10: Mark only if Lines 1 through 9 do not apply. Enter an
Note: If your sales location is in Cook, DuPage, Kane, Lake,
explanation on the lines provided. Attach additional sheets if
McHenry, or Will County and the address of the party registering the
necessary.
item on Form ST-556-LSE, Section 2, is within the corporate limits
Step 3: Correct your financial information
of the city of Chicago, you must collect an additional 1.25 percent
(.0125) Chicago Home Rule Use Tax. To help you calculate the tax
Complete Step 3 to make corrections to the financial figures on your
due on one of these sales for lease, we preprint a combined rate
return. Round your figures to whole dollar amounts by dropping
below Line 4 on the paper Form ST-556-LSE returns the Department
amounts of less than 50 cents and increasing amounts of 50 cents or
issues to you. This combined rate includes your tax rate, plus the
more to the next higher dollar.
additional 1.25 percent Chicago Home Rule Use Tax. To figure the
For Line 4, enter on the line provided the appropriate tax rate for the
correct tax due, multiply the amount subject to tax on Line 3 by the
taxable location where the sale for lease occurred.
combined rate. Enter the result on Line 4.
If you were assessed penalty and interest on the original
Line 7: Complete this line only if you originally filed and paid the tax
Form ST-556-LSE that you filed, we will take those figures into
owed by the due date. If you filed on time, figure your discount at
account when we process your amended return. Do not include
the rate of 1.75 percent (.0175) of the amount you paid on time. If
penalty and interest in the figures you enter in Step 3.
Column A
you are increasing the amount of tax due, you may not increase the
amount of your discount unless the increased tax due is paid on or
Lines 1 through 12: Enter the figures from your most recent return.
before the due date of the original return. If you are decreasing the
These figures may be from your original Form ST-556-LSE or a
amount of tax due, you will need to refigure the amount of discount to
previously filed Form ST-556-LSE-X.
Column B
which you are entitled based on your new figures.
Line 7a
Lines 1 through 12: Enter the corrected figures. If there is no
Note: Use Line 7a only if you have a business location in the
change on a particular line from Column A, enter the figures from
Metro-East Mass Transit District portion of St. Clair County.
Column A for that line.
The Illinois Department of Revenue is responsible for collecting and
Note: If you have an amount entered in Column A that you are
administering the fee imposed by the transit authority on sales of
reducing to zero, enter “0” in Column B. Leaving a line in Column B
items at retail when those items are required to be titled or registered
blank may delay the processing of your return.
by an agency of Illinois state government. Multiply Line 3 by 0.5
Lines 13 through 15: Follow the instructions on the form.
Detailed instructions for certain lines in Step 3
percent (0.005).
• If the result is less than $20, enter the result on Line 7a.
Line 1: If eligible, enter the amount of the lease contract, including
• If the result is $20 or more, enter $20 on Line 7a.
the amount due at signing of the lease, plus the total amount of
Line 13: Enter the total amount you have paid. This figure includes
all lease payments. Include any charges factored into the lease
the amount you paid with your original Form ST-556-LSE, any
contract, including, but not limited to extended warranty, registration
subsequent amended returns, and any assessment payments you
fees, title fees, negative equity, rebates, cash down payments, and
have made. Reduce the total amount paid by any credit or refund of
the first month’s lease.
tax you have received for this transaction.
Note: The selling price on which tax is calculated cannot be reduced
Line 14: If Line 13 is greater than Line 12, Column B, enter the
by the amount of any trade-in. Therefore, if the amount of the lease
difference on Line 14. This is the amount you have overpaid.
contract has been reduced because of a trade-in, to figure out the
Line 15: If Line 13 is less than Line 12, Column B, enter the
amount to enter on Step 3, line 1, you must add the amount of any
difference on Line 15. This is the amount you have underpaid.
trade-in to the amount of the lease contract.
Pay this amount when you file the return. We will bill you for any
If not eligible, enter the actual selling price, including accessories,
additional penalty and interest that we calculate is due. Enter
federal excise taxes, freight and labor, dealer preparation,
the amount you are paying on the line provided in the “Read this
documentary fees, and any rebates or incentives for which you as
information first” section on the front of the return.
a dealer receive reimbursement. Do not subtract the value of any
Step 4: Sign below
rebate made directly to the customer. In general, any cost passed
We cannot process this form until it is signed by the owner, officer, or
on to the customer as part of the sale of an item and for which gross
other person authorized to sign the original return.
receipts are received should be included in the total price.
Penalty and Interest Information
Note: If you are selling a new truck for lease that weighs 33,000
pounds or more or a new trailer or semitrailer chassis weighing
If, on this amended return, you are increasing the amount of tax
26,000 pounds or more, you may exclude the federal excise tax from
due, we will bill you for any additional penalty and interest that we
the total price.
calculate is due. If, on this amended return, you are reducing the
Line 2: Enter the corrected total trade-in credit or value. Trade-in
amount of tax due or changing the due date, we will recalculate any
credit is not allowed if you entered on Step 3, Line 1, the amount due
penalty and interest that is due and include the recomputed amounts
at signing, plus total lease payments. Do not deduct rebates.
in determining the amount you have overpaid.
Line 4: Calculate your tax due using the following to determine the
You owe a late filing penalty if you do not file a processable return
by the due date, a late payment penalty if you do not pay the
appropriate rate:
• If you made this sale for lease at your standard business
amount you owe by the original due date of the return, a bad check
location (i.e., the location printed on the front of the paper
penalty if your remittance is not honored by your financial institution,
Form ST-556-LSE returns the Department issues to you), multiply
and a cost of collection fee if you do not pay the amount you owe
Line 3 by your standard tax rate.
within 30 days of the date printed on a bill that we send you. We will
• If you made this sale for lease at an off-site location (e.g., a tent
bill you for any amounts owed. For more information, see Publication
sale), follow the instructions on ST-23, How to Report Off-Site
103, Penalties and Interest for Illinois Taxes, available on our website
Sales on Form ST-556, Sales Tax Transaction Return, or Form
at tax.illinois.gov.
ST-556-LSE, Transaction Return for Leases, available on our
website at tax.illinois.gov.
ST-556-LSE-X Instructions (N-01/15)
Page 2 of 3
ST-556-LSE-X Instructions (N-01/15)
Page 3 of 3
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