The CBS-1 Illinois form is a document required by the Illinois Department of Revenue for individuals or entities selling or transferring significant business assets. This form must be completed when a business sells or transfers the majority of its stock, furniture, machinery, or real property, particularly when such transactions occur outside the normal course of business. Timely submission of the CBS-1 is crucial, as forms received more than 10 days after the sale date will not be processed.
The CBS-1 form, issued by the Illinois Department of Revenue, plays a crucial role in the process of selling or transferring significant business assets. This form is necessary when a business owner sells or transfers the major components of their operation, which may include inventory, furniture, machinery, or real estate. Timeliness is essential; submissions must be made within ten days of the transaction date to ensure processing. Failure to comply could result in the purchaser or transferee being held responsible for any debts incurred by the seller. The form requires detailed information about both the seller and the buyer, including their respective identification numbers and contact details. Additionally, it outlines the terms of the sale, such as the selling price and payment structure, and asks whether the seller's registration numbers will remain active. It is vital for all parties involved to understand that disclosing this information is not just a formality; it is a legal requirement that protects both the seller and the buyer from potential tax liabilities. For those needing assistance, the Illinois Department of Revenue offers support through their Chicago office during business hours, ensuring that all questions can be addressed promptly. Completing the CBS-1 form accurately is a significant step in the transition of business ownership, safeguarding the interests of everyone involved.
What is the CBS-1 form used for?
The CBS-1 form is utilized to report the sale, purchase, or transfer of significant business assets in Illinois. This includes the major part of stock, furniture, fixtures, machinery, equipment, or real property. It is essential for ensuring that the Illinois Department of Revenue is informed about such transactions, which helps in the assessment of any applicable taxes.
Who needs to complete the CBS-1 form?
The form must be completed by the seller, purchaser, or transferee involved in the sale or transfer of business assets. If you are selling or transferring a major part of your business assets outside the usual course of business, this form is necessary to fulfill state requirements.
What is the deadline for submitting the CBS-1 form?
It is crucial to submit the CBS-1 form within 10 days following the sale or transfer date. Forms received after this period will not be processed. Timely submission is important to avoid any complications or liabilities that may arise from late reporting.
What happens if the CBS-1 form is not submitted?
If the CBS-1 form is not submitted, the purchaser or transferee may be held liable for any debts incurred by the seller. This includes any taxes owed to the Illinois Department of Revenue. Therefore, it is in the best interest of all parties involved to ensure that the form is completed and submitted promptly.
How should the CBS-1 form be submitted?
The completed CBS-1 form, along with a copy of the sales contract and any financing agreements, should be mailed to the Bulk Sales Unit at the Illinois Department of Revenue in Chicago. Alternatively, the form and sales contract can be faxed to the designated number. Proper submission is key to ensuring that all necessary documentation is received and processed.
What information is required on the CBS-1 form?
The CBS-1 form requires detailed information about the business being sold or transferred, including the business name, tax identification numbers, and addresses. It also requires details about the seller, purchaser, and the terms of the sale or transfer. Accurate information is vital for the processing of the form.
Can I get assistance with filling out the CBS-1 form?
If you need help or have questions regarding the CBS-1 form, you can contact the Illinois Department of Revenue's Chicago office during business hours. They can provide guidance and clarify any uncertainties you may have about the form or the process.
What should I do if I have more questions about the CBS-1 form?
If you have additional questions or need more information about the CBS-1 form, you can call the Illinois Department of Revenue. They are available on weekdays from 8:30 a.m. to 5:00 p.m. to assist with any inquiries you may have regarding the form or related processes.
Is there a penalty for not providing accurate information on the CBS-1 form?
Yes, providing inaccurate information on the CBS-1 form can lead to penalties. The Illinois Department of Revenue requires accurate reporting of all business sales to avoid potential liabilities for the purchaser or transferee. It is essential to ensure that all information is correct and complete before submission.
Missing Deadline: Submitting the CBS-1 form more than 10 days after the sale date can lead to non-processing of the form.
Incorrect Business Information: Failing to accurately fill in the business name or identification numbers can cause delays or rejections.
Omitting Contact Information: Not providing a daytime phone number for the seller or purchaser can hinder communication with the Illinois Department of Revenue.
Inaccurate Financial Details: Entering incorrect selling prices or values for business assets can lead to complications in tax assessments.
Neglecting Excise Tax Information: Failing to indicate whether excise taxes are applicable may result in unexpected liabilities.
Incomplete Attorney Information: Not providing the name and contact details of the seller’s or purchaser’s attorney can delay processing.
Missing Signatures: The form must be signed by the person submitting it; a missing signature will render the submission invalid.
Incorrect Payment Terms: Providing inaccurate details about payment terms, such as down payment or monthly payment amounts, can lead to disputes.
Failure to Indicate Business Status: Not specifying whether the entire business was sold or transferred can complicate tax responsibilities.
Neglecting to Include Required Documents: Omitting necessary documents, such as the sales contract or financing agreement, can delay processing.
Illinois Department of Revenue
CBS-1 Notice of Sale, Purchase, or Transfer of Business Assets
General information
You (or the purchaser or the transferee) must complete Form CBS-1 if, outside your usual course of business, you sell or transfer the major part of the
•stock of goods that you are in the business of selling,
•furniture or fixtures,
•machinery and equipment, or
•real property of your business.
Forms received more than 10 days after the sale date will not be pro- cessed. The purchaser or transferee may be held liable for any debt incurred by the seller.
If you need additional information, you may call our Chicago office weekdays between 8:30 a.m. and 5:00 p.m. at 312 814-3063.
Mail your completed Form CBS-1, a copy of the sales contract, and financing agreement to:
BULK SALES UNIT
ILLINOIS DEPARTMENT OF REVENUE 100 WEST RANDOLPH LEVEL 7-400 CHICAGO IL 60601
You may fax your form and sales contract to us at 312 793-3841.
Part 1: Identify the business being sold or transferred and the identification numbers
1
____________________________________________________
3
_______________________________________
Business name
Illinois business tax number (IBT no.) or account identification number
2
4
___ ___-___ ___ ___ ___ ___ ___ ___ ___ ___ ___
Street address
Federal employer identification number (FEIN)
Seq. number
5
___ ___ ___-___ ___-___ ___ ___ ___
Street address (if needed)
Social Security number
6
Are you required to pay any excise taxes?
Yes
No
City
State
ZIP
Excise tax number ________________________________________
Part 2: Identify the seller or transferor
7
9
(
)
—
__________________________
Name
Daytime phone number
8
10
Home or mailing address
Name of seller’s or transferor’s attorney
11
Address of attorney
Part 3: Identify the purchaser or transferee
12
14
Purchaser’s or transferree’s IBT no. and FEIN
13
15
Name of purchaser’s or transferee’s attorney
16
Part 4: Describe the terms of sale or transfer
17Date business was or will be sold or transferred. ___/___/____
Month Day Year
18Selling price of the business or the value of the business assets transferred: $ ____________________
19Was the entire business sold or transferred? Yes
No - You must complete Line 20.
20Are the seller’s or transferee’s registration numbers with the
department to remain active? Yes
No - Write the date to be discontinued. ___/___/____
21Terms of sale or transfer. Write “X” in the appropriate box, and provide additional information as requested.
Cash sale
Contract sale. Complete the following information:
•
Down payment amount:
$ ____________________
Monthly payment amount:
Date last payment is due
___/___/____
Conventional financing
Other (Specify.): ____________________________________
_________________________________________________
Part 5: Sign below. This must be completed by the person submitting this Form.
22
24 ____________________________________________________
Print or type your name
Signature
Date
23____________________________________________________
Mailing address of person
CBS-1 (R-4-09)
This form is authorized as outlined by the Illinois Income Tax Act [35 ILCS 5/902] and the Retailers’ Occupation Tax Act [35 ILCS 120/5j]. You are required to report all sales of businesses to the Illinois Department of Revenue. Disclosure of this information is REQUIRED. Failure to provide such information may result in the purchaser or transferee
becoming personally liable for the amount of tax owed by the seller. This form has been approved by the Forms Management Center.
IL-492-4224
When filling out the CBS-1 Illinois form, it is important to follow specific guidelines to ensure proper processing. Below are five things you should do and five things you should avoid.
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By clarifying these misconceptions, businesses can ensure they comply with the requirements of the CBS-1 form and avoid potential liabilities.
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