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.
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Here are five common misconceptions about the CBS-1 form in Illinois, along with clarifications for each:
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.
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.
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.
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.
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.
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's important to follow certain guidelines to ensure that your submission is correct and complete. Here are ten things to do and avoid:
Following these guidelines can help ensure a smoother process when dealing with the Illinois Department of Revenue.
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.