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Avalara Help Center

What do I need to do for Action Required - Illinois Nexus Discrepancy?

Overview

You received an email indicating Avalara has found a discrepancy between your Avalara AvaTax Admin Console settings for Illinois and and your state registration. Specifically, your nexus is set to collect sales tax as an in state retailer, however we have no record of you having any locations. According to the Illinois state site you are only registered to collect tax as an out of state retailer. This is resulting in incorrect taxable sales being reported to the Illinois Department of Revenue (DOR). 

Environment

Avalara Returns

Illinois

Resolution

  • First, determine if you are registered to report tax as an instate retailer (sales tax) or as an out of state retailer (sellers use tax) to Illinois.

    • If you are unsure which tax you should be reporting, please call the Illinois DOR at 1-800-732-8866.

  • To file Seller's Use Tax

  • To file Sales Tax

    • Confirm the appropriate location(s) are registered with the state

    • Confirm we have the correct login information for the state website via the online filing calendar tool:

      • Admin Console > Tax Returns > Manage Filing Calendars > click Illinois form to view login information and update if needed.

    • Once your location(s) are registered to the state:

      • Create the locations in your Admin Console: Go to the Admin Console > Organization Locations > New

      • Ensure your accounting system applies the location code(s) to sales as appropriate

  • To file both Sales Tax and Seller's Use Tax complete all steps above

Note: Even if you do not have any taxable sales, but your nexus setting does not match your state registration, you will continue to show up on our list of discrepancies..