Get Illinois Rhm 1 Form

Get Illinois Rhm 1 Form

The Illinois RHM-1 form is a tax return specifically designed for hotel operators to report their occupancy tax obligations to the Illinois Department of Revenue. This form helps businesses calculate their taxable base, total tax due, and any applicable discounts. For those operating in the hospitality industry, completing the RHM-1 is essential for compliance and accurate tax reporting.

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When managing a hotel or lodging business in Illinois, understanding the Illinois RHM-1 form is crucial for compliance with state tax regulations. This form, officially known as the Hotel Operators' Occupation Tax Return, serves as a means for hotel operators to report their taxable receipts and calculate the taxes owed to the state and local authorities. It encompasses various essential elements, including the identification of the business, the reporting period, and detailed calculations of total receipts, deductions, and taxes. Operators must accurately report their total receipts, which include room rentals and any taxes collected during the reporting period. The form also allows for local tax deductions and other specific deductions that may apply, such as those for permanent residents or meeting rooms. Furthermore, it guides users through calculating the total tax due, including state and local taxes, while offering a discount for timely filing and payment. Completing the RHM-1 form accurately is not just a matter of compliance; it is vital for ensuring that your business operates smoothly and avoids potential penalties. By understanding each step of this form, hotel operators can navigate their tax responsibilities with confidence.

Document Breakdown

Fact Name Details
Form Purpose The RHM-1 form is used to report the Hotel Operators' Occupation Tax in Illinois.
Governing Law This form is governed by the Illinois Compiled Statutes, specifically 35 ILCS 505/1 et seq.
Filing Frequency Businesses must file the RHM-1 form monthly or quarterly, depending on their tax liability.
Tax Rate The state tax rate is 5.64%, while the Chicago tax rate is 5.235%.
Final Return Option Taxpayers can indicate if this is a final return if they are no longer in business.
Discount for Timely Payment A discount of 2.1% is available if the taxpayer files and pays on time.
Signature Requirement Both the taxpayer and the preparer must sign the form, affirming its accuracy under penalty of perjury.

Common PDF Forms

Misconceptions

  • Misconception 1: The RHM-1 form is only for hotels.
  • Many people believe that the RHM-1 form is exclusively for traditional hotels. However, it applies to any business that rents out rooms, including motels, bed and breakfasts, and vacation rentals.

  • Misconception 2: You don’t need to file if you had no guests.
  • Some operators think that if they did not have any guests during a reporting period, they do not need to file the form. In reality, it is still necessary to submit the RHM-1 form, even if the taxable receipts are zero.

  • Misconception 3: The form is only required annually.
  • There is a common belief that the RHM-1 form can be filed once a year. In fact, it is typically filed quarterly, and missing these deadlines can lead to penalties.

  • Misconception 4: You can ignore deductions.
  • Some may think that deductions do not need to be claimed. This is not true. Properly identifying and claiming deductions can significantly reduce the taxable amount, so it’s important to include them.

  • Misconception 5: The form is complicated and time-consuming.
  • While it may seem daunting at first, the RHM-1 form is straightforward. With clear instructions and a structured format, many find they can complete it quickly once they gather the necessary information.

  • Misconception 6: Late submissions are not a big deal.
  • Some operators underestimate the importance of timely submissions. Late filings can result in penalties and interest, making it crucial to adhere to deadlines.

  • Misconception 7: You don’t need to keep records.
  • Many believe that record-keeping is unnecessary after filing the form. However, maintaining accurate records is essential for verifying the information provided and for any potential audits.

Example - Illinois Rhm 1 Form

Illinois Department of Revenue

 

RHM-1 Hotel Operators' Occupation Tax Return

REV 3

Form 475

 

E S ___/___/___

 

NS

DP CA

Identify your business

 

Station no. 515

 

Do not write above this line.

 

 

 

 

 

Account ID: ___ ___ ___ ___ ___ ___ ___ ___

 

Check here if your address has changed.

 

 

 

 

 

Tell us the liability period for which you are filing this return:

License no. HM - ___ ___ ___ ___ ___

 

Month of: __ __/___ __

 

 

 

 

 

 

Quarter ending: __ __/___ __

 

 

 

Business name _______________________________________

Year: __ __ __ __

 

 

 

Business address ________________________________________

Is this a final return (you are no longer in business)?

yes no

 

Number and street

 

 

 

 

 

_______________________________________________________

 

 

 

 

City

State

ZIP

 

 

 

 

 

 

 

 

 

 

Step 1: Figure your taxable base

 

 

 

 

 

1 Total receipts. (Includes all room rental receipts, state, and local tax collected for this reporting period.)

1

______________|____

2

Local tax deduction

 

 

2

______________|____

3Other deductions (Describe each deduction by item AND amount on the lines below) Example: permanent residents: $1,000.00, meeting rooms: $200.00

_________________________________________________________________

_________________________________________________________________

 

_________________________________________________________________

Total other deductions: 3

______________|____

4

Subtraction for MPEA Hotel Tax collected.

4

______________|____

5

Add Lines 2 through 4. This is your total deductions.

5

______________|____

6

Subtract Line 5 from Line 1. This is your taxable base.

6

______________|____

Step 2: Figure your total tax

7

State tax. Multiply Line 6 by .0564

7

______________|____

8

Chicago taxes. Multiply Line 6 by .05235

8

______________|____

9

Add Lines 7 and 8. This is your total tax.

9

______________|____

 

 

 

 

Step 3: Figure your discount

10 If you file and pay on time, multiply Line 9 by .021

10 ______________|____

Step 4: Figure your payment due

11

Subtract Line 10 from Line 9. This is your net tax due.

11

______________|____

12

If you collected too much tax, report the amount of excess tax you collected.

12

______________|____

13

Add Line 11 and Line 12. This is your tax due.

13

______________|____

14

If you have credit, tell us the amount of credit you wish to apply.

14

______________|____

15

Subtract Line 14 from Line 13. This is your total tax due. Pay this amount.

15

______________|____

Step 5: Sign below

Under penalties of perjury, I state that I have examined this return and, to the best of my knowledge, it is true, correct, and complete. The information in this return is taken from the records of the business for which it is filed.

___________________________________________________

____________ ____/____/________

(____)____-____________

Taxpayer's signature

Title

Date

Telephone (Include area code)

___________________________________________________

 

____/____/________ (____)____-____________

Preparer's signature

 

Date

Telephone (Include area code)

*247501110*

RHM-1 (R-11/12)

This form is authorized as outlined under the tax or fee Act imposing the tax or fee for which this form is filed. Disclosure of this information is required. Failure to provide information may result in this form not being processed and may result in a penalty.

Dos and Don'ts

When filling out the Illinois RHM-1 form, consider the following guidelines to ensure accuracy and compliance.

  • Do double-check all figures before submitting the form. Accurate numbers prevent delays and potential penalties.
  • Do clearly indicate any changes to your business address. This helps maintain accurate records.
  • Don't leave any required fields blank. Incomplete forms may lead to processing issues.
  • Don't forget to sign the form. An unsigned return is considered invalid.

Illinois Rhm 1: Usage Instruction

After completing the Illinois RHM-1 form, you will submit it to the Illinois Department of Revenue. Ensure that all figures are accurate and that you have included any necessary documentation. This step is crucial for compliance with state tax regulations.

  1. Begin by identifying your business. Fill in your Account ID and check the box if your address has changed.
  2. Indicate the liability period for which you are filing. Specify the license number, the month, quarter ending, and year.
  3. Enter your business name and business address, including the street, city, state, and ZIP code.
  4. Indicate whether this is a final return by checking "yes" or "no."
  5. Calculate your taxable base:
    • Line 1: Enter your total receipts.
    • Line 2: Enter any local tax deductions.
    • Line 3: List other deductions, providing a description and amount for each.
    • Line 4: Enter the subtraction for MPEA Hotel Tax collected.
    • Line 5: Add Lines 2 through 4 to find your total deductions.
    • Line 6: Subtract Line 5 from Line 1 to determine your taxable base.
  6. Calculate your total tax:
    • Line 7: Multiply Line 6 by .0564 for state tax.
    • Line 8: Multiply Line 6 by .05235 for Chicago taxes.
    • Line 9: Add Lines 7 and 8 to find your total tax.
  7. Figure your discount:
    • Line 10: If you file and pay on time, multiply Line 9 by .021.
  8. Determine your payment due:
    • Line 11: Subtract Line 10 from Line 9 to find your net tax due.
    • Line 12: Report any excess tax collected.
    • Line 13: Add Line 11 and Line 12 to determine your tax due.
    • Line 14: Indicate any credit you wish to apply.
    • Line 15: Subtract Line 14 from Line 13 to find your total tax due. This is the amount you will pay.
  9. Sign the form. Include your signature, title, date, and telephone number. If a preparer assisted you, they must also sign and provide their information.