Get Cbs 1 Illinois Form

Get Cbs 1 Illinois Form

The CBS-1 Illinois form is a document required by the Illinois Department of Revenue for reporting the sale, purchase, or transfer of business assets. This form must be completed when a significant portion of a business's inventory, equipment, or property is sold or transferred outside the normal course of business operations. Timely submission is crucial, as forms received more than 10 days after the sale date will not be processed, potentially leaving the purchaser liable for any debts incurred by the seller.

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The CBS-1 form, officially known as the Notice of Sale, Purchase, or Transfer of Business Assets, is a critical document for businesses in Illinois engaging in significant asset transactions. This form must be completed when a business sells or transfers a substantial portion of its stock of goods, furniture, fixtures, machinery, equipment, or real property outside the normal course of operations. Timeliness is essential; submissions received more than ten days after the sale date will not be processed. Both the seller and the purchaser or transferee have important responsibilities under this form. The purchaser may assume liability for any debts incurred by the seller, highlighting the need for thoroughness and accuracy in the information provided. The form requires detailed identification of the businesses involved, including tax identification numbers and addresses, as well as the terms of the sale or transfer. Additionally, it includes sections for the seller and purchaser to specify their legal representatives and the specifics of the transaction, such as the selling price and payment terms. Proper completion and timely submission of the CBS-1 form to the Illinois Department of Revenue are essential to comply with state regulations and avoid potential liabilities. For any questions or additional information, the Illinois Department of Revenue offers assistance during business hours.

Document Breakdown

Fact Name Details
Purpose of Form The CBS-1 form is used to report the sale, purchase, or transfer of significant business assets in Illinois.
Governing Laws This form is authorized under the Illinois Income Tax Act (35 ILCS 5/902) and the Retailers’ Occupation Tax Act (35 ILCS 120/5j).
Filing Deadline Forms must be submitted within 10 days of the sale date to be processed by the Illinois Department of Revenue.
Liability for Debts The purchaser or transferee may be held liable for any debts incurred by the seller if the CBS-1 form is not filed.
Contact Information For assistance, you can call the Chicago office at 312-814-3063 during business hours.

Common PDF Forms

Misconceptions

Here are five common misconceptions about the CBS-1 form in Illinois, along with clarifications for each:

  • Misconception 1: The CBS-1 form is only for large businesses.
  • This form applies to any business, regardless of size, that sells or transfers a major part of its assets. If you are selling significant inventory, furniture, or equipment, you need to complete this form.

  • Misconception 2: Submitting the CBS-1 form is optional.
  • Completing the CBS-1 form is mandatory when a business sells or transfers assets outside of its usual course of business. Failing to submit it can lead to the purchaser or transferee being held liable for the seller's tax debts.

  • Misconception 3: The form can be submitted at any time after the sale.
  • The form must be submitted within 10 days of the sale date. If it is submitted late, it will not be processed, which can create complications for both the seller and the buyer.

  • Misconception 4: Only the seller is responsible for completing the form.
  • While the seller typically completes the CBS-1 form, the purchaser or transferee is also responsible for ensuring it is submitted. Both parties should be aware of their obligations regarding the form.

  • Misconception 5: The CBS-1 form does not require any supporting documents.
  • In addition to the completed CBS-1 form, you must include a copy of the sales contract and any financing agreements. These documents provide necessary context and details about the transaction.

Example - Cbs 1 Illinois Form

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

Daytime phone number

 

____________________________________________________

11

____________________________________________________

 

City

State

ZIP

 

Address of attorney

 

 

Part 3: Identify the purchaser or transferee

12

____________________________________________________

14

____________________________________________________

 

Name

 

 

 

Purchaser’s or transferree’s IBT no. and FEIN

(

)

 

 

 

 

 

 

13

____________________________________________________

15

____________________________________________________

 

Home or mailing address

 

 

 

Name of purchaser’s or transferee’s attorney

 

Daytime phone number

 

____________________________________________________

16

____________________________________________________

 

City

State

ZIP

 

Address of attorney

 

 

 

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. ___/___/____

Month Day Year

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

___/___/____

Month Day Year

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

Daytime phone number

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

Dos and Don'ts

When filling out the CBS-1 Illinois form, it's important to follow certain guidelines to ensure that your submission is correct and complete. Here are ten things to do and avoid:

  • Do complete the form within 10 days of the sale date.
  • Do provide accurate business identification numbers.
  • Do include a copy of the sales contract and financing agreement.
  • Do ensure all required sections are filled out completely.
  • Do sign the form before submission.
  • Don't leave any required fields blank.
  • Don't forget to include your daytime phone number for contact.
  • Don't submit the form without verifying all information is correct.
  • Don't ignore the requirement to report all business sales.
  • Don't delay in submitting the form to avoid potential liability.

Following these guidelines can help ensure a smoother process when dealing with the Illinois Department of Revenue.

Cbs 1 Illinois: Usage Instruction

Completing the CBS-1 form is a necessary step for anyone involved in the sale or transfer of business assets in Illinois. The following instructions will guide you through the process to ensure that all required information is provided accurately and promptly.

  1. Obtain the CBS-1 form from the Illinois Department of Revenue website or your local office.
  2. In Part 1, fill in the business name and identification numbers:
    • Line 1: Enter the business name.
    • Line 2: Provide the street address.
    • Line 3: Input the Illinois business tax number (IBT no.) or account identification number.
    • Line 4: Fill in the Federal Employer Identification Number (FEIN).
    • Line 5: If needed, provide an additional street address.
    • Line 6: Enter the excise tax number.
    • Line 7: Indicate whether you are required to pay any excise taxes (Yes or No).
  3. In Part 2, identify the seller or transferor:
    • Line 8: Enter the seller’s name.
    • Line 9: Provide the daytime phone number.
    • Line 10: Fill in the home or mailing address.
    • Line 11: Enter the name of the seller’s or transferor’s attorney.
    • Line 12: Provide the attorney’s daytime phone number.
    • Line 13: Fill in the attorney’s address.
  4. In Part 3, identify the purchaser or transferee:
    • Line 14: Enter the purchaser’s or transferee’s name.
    • Line 15: Provide the purchaser’s or transferee’s IBT no. and FEIN.
    • Line 16: Fill in the home or mailing address.
    • Line 17: Enter the name of the purchaser’s or transferee’s attorney.
    • Line 18: Provide the attorney’s daytime phone number.
    • Line 19: Fill in the attorney’s address.
  5. In Part 4, describe the terms of sale or transfer:
    • Line 20: Enter the date the business was or will be sold or transferred.
    • Line 21: Provide the selling price of the business or the value of the business assets transferred.
    • Line 22: Indicate whether the entire business was sold or transferred (Yes or No).
    • Line 23: If No, complete Line 24.
    • Line 24: Indicate whether the seller’s or transferee’s registration numbers will remain active (Yes or No).
    • Line 25: Fill in the date to be discontinued if applicable.
    • Line 26: Describe the terms of sale or transfer, including payment details if applicable.
  6. In Part 5, sign the form:
    • Line 27: Print or type your name.
    • Line 28: Provide your daytime phone number.
    • Line 29: Sign and date the form.
    • Line 30: Enter the mailing address of the person submitting the form.
  7. Review the completed form for accuracy and completeness.
  8. Mail the completed form, along with a copy of the sales contract and financing agreement, to the address provided, or fax it to the designated number.