Could Illinois grant a one-day sales-tax return extension on request, and what items qualified for the reduced medical-appliance rate?

Plain-English summary

Illinois said it had no authority to grant the requested one-day extension for filing a sales-tax return. Retailers had to file by the statutory deadlines in 35 ILCS 120/3 and the cited return regulation.

The GIL also answered a separate question about medical appliances. A qualifying item had to be intended by its manufacturer to directly substitute for a malfunctioning body part. The letter listed artificial limbs, dental prostheses, orthodontic and orthopedic braces, crutches, wheelchairs, pacemakers, dialysis machines, hearing aids, eyeglasses, and contact lenses as examples.

Not every item prescribed or used by a health professional qualified. Diagnostic, treatment, and rehabilitative equipment generally failed the test because it did not directly substitute for a malfunctioning body part. The letter stated historical state rates of 1% for qualifying items and 6.25% for other tangible property, plus applicable local taxes.

What this means for you

Do not assume a phone call or hardship request changes a filing deadline. For product tax treatment, document the manufacturer's intended substitution function rather than relying only on medical use.

Common questions

Q: Could the Department allow the requested one-day filing delay?
A: No. It said it lacked authority to do so.

Q: Did all medical equipment qualify for the low rate?
A: No. The item had to directly substitute for a malfunctioning body part.

Citations and references

• 35 ILCS 120/3; 86 Ill. Adm. Code 130.510
• 86 Ill. Adm. Code 130.310 and 130.310(c)(2)
• 2 Ill. Adm. Code 1200.110 and 1200.120

Subject

Returns

Source

• Landing page: https://taxarchive.illinois.gov/research/legal/letter-rulings/sales-tax/2010.html
• Original PDF: https://tax.illinois.gov/content/dam/soi/en/web/taxarchive/research/legal/letter-rulings/sales-tax/2010/st-10-0051.pdf

Original ruling text

ST 10-0051-GIL 06/04/2010 RETURNS
Illinois retailers are required to file returns by specific statutory deadlines. 35 ILCS 120/3. 86
Ill. Adm. Code 130.501. (This is a GIL.)

June 4, 2010

Dear Xxxxx:
This letter is in response to your letter dated January 20, 2010, in which you request
information. The Department issues two types of letter rulings. Private Letter Rulings (“PLRs”) are
issued by the Department in response to specific taxpayer inquiries concerning the application of a
tax statute or rule to a particular fact situation. A PLR is binding on the Department, but only as to the
taxpayer who is the subject of the request for ruling and only to the extent the facts recited in the PLR
are correct and complete. Persons seeking PLRs must comply with the procedures for PLRs found in
the Department’s regulations at 2 Ill. Adm. Code 1200.110. The purpose of a General Information
Letter (“GIL”) is to direct taxpayers to Department regulations or other sources of information
regarding the topic about which they have inquired. A GIL is not a statement of Department policy
and is not binding on the Department. See 2 Ill. Adm. Code 1200.120. You may access our website
at www.tax.illinois.gov to review regulations, letter rulings and other types of information relevant to
your inquiry.
The nature of your inquiry and the information you have provided require that we respond with
a GIL. In your letter you have stated and made inquiry as follows:
Per my telephone conversation today with an agent in your office, I learned that there is
no Statutory Law allowing a One-Day delay or Time Extension in filing of Sales and Use
Tax returns based on contact with AGENT. Under the Americans with Disabilities
Amended Act of 2009 with training completed this year under talks sponsored by
Disability Works, your organization is not exempt from compliance with Federal Laws.
Therefore, I suggest that you allow anyone a one day Time Extension to file Sales Tax
Forms as long as they contact you. No late charges should apply in those
circumstances. In such contact, I recommend that you collect and document the name
and reason given by the individual or Store Owner for late filing. Such a method has
implications with our Property and Business Account Foreclosure Processes and our
Transportation Security System. Under the above business names, I have the
opportunity of proprietary Sales affecting industries which include Telecommunications
Mobile Phone and Software.
I am blind copying providers of Telecommunications Services with a redacted copy as
that they may set-up a complementary 800-number to collect such information about
lateness on the part of individuals complying with Illinois and Federal State Tax Filings.
Training of mine allows me knowledge of such issues. Also, under my Business Plan in
which I am providing you confidentially, there are apparently methods underway to
reduce Government Offices, or allow a store to Discontinue Operations under a

Reduction of Features offered in Voice Mail Message Prompts.
Telecommunications Providers with this application.

I am assisting my

Given the considerations that our court system allows a one-day delay for filing of Court
Briefs, I would like you [sic] legal staff to allow me a one-day time extension since I am
working other plans which generate bigger revenue. In the meantime, I may be able to
obtain a complementary 800-number for my use under the Supplier Quality & Failure
Analysis Center™ for Excellence in which State or Federal government operations
would be monitored with inputs from Tax Payers who have difficulties with delays
requiring extensions in filing of tax returns and/or special forms such as Sales and Use
taxes. We would not be a source for completion of Tax Forms or Tax Preparer
information. Also, in my obtainment of 800-number service, I would allow myself FREE
services for 3-months of call time.
Note that I am the ONLY AUTHORIZED source for collection of Sales and Use tax for
ABC Software and Services under U.S. Patent Application #. These RIGHTS are
INTERNATIONAL. Also, the U.S. Patent Examiner noted that I am involved in the
development of the Google Operating System and the only source for collection of
Sales and Use Taxes on the Dell Mobile Phone, based on the Google Operating
System. At a later time this year, I would be required to collect those taxes. I can be
placed on a 3-month basis for filing of Sales Taxes.
If you have information about what constitutes ‘medical appliances’, I would like that
information provided to me confidentially. In the meantime, your efforts to allow me a
one-day filing extension are appreciated without penalty.

DEPARTMENT’S RESPONSE:
Extension of Time
Illinois retailers are required to file returns by specific statutory deadlines. The Department has
no authority to provide the extension you have requested. See 35 ILCS 120/3; 86 Ill. Adm. Code
130.510.
Medical Appliances
All gross receipts from sales of tangible personal property in Illinois are subject to Retailers’
Occupation Tax unless an exemption is specifically provided. Medicines and medical appliances are
not taxed at the normal State rate of 6.25% plus applicable local taxes. These items are taxed at a
reduced State rate of 1% plus applicable local taxes. See 86 Ill. Adm. Code 130.310. Items subject to
this lower tax rate include prescription and nonprescription medicines, drugs, medical appliances, and
insulin, urine testing materials, syringes, and needles used by diabetics, for human use.
The definition of a medical appliance is "an item which is intended by its manufacturer for use
in directly substituting for a malfunctioning part of the body." “Medical appliances” may be prescribed
by licensed health care professionals for use by a patient, purchased by health care professionals for
the use of patients, or purchased directly by individuals. See 86 Ill. Adm. Code 130.310(c)(2). Please
note that not all items prescribed by or used by physicians or other licensed health care professionals
qualify for the low rate.

Medical appliances that qualify for the reduced rate include such items as artificial limbs,
dental prostheses and orthodontic braces, crutches and orthopedic braces, wheelchairs, heart
pacemakers, and dialysis machines. Other examples of items that qualify for the reduced rate are
corrective medical appliances such as hearing aids, eyeglasses and contact lenses. As a general
proposition, diagnostic, treatment, and rehabilitative equipment items do not qualify for the reduced
rate of tax as medical appliances because such items are not "for use in directly substituting for a
malfunctioning part of the body," 86 Ill. Adm. Code 130.310(c)(2).
I hope this information is helpful. If you require additional information, please visit our website
at www.tax.illinois.gov or contact the Department’s Taxpayer Information Division at (217) 782-3336.
Very truly yours,

Debra M. Boggess
Associate Counsel
DMB:msk