2025 Illinois DPP Update!

Starting with calendar year 2024, Senate bill 3282 mandates Illinois Direct Pay Permit (DPP) holders to review purchases made throughout the year to verify the correct tax was applied. This review

Senate Bill 3282, enacted on August 9, 2024, requires Illinois direct pay permit (DPP) holders to conduct an annual review of purchase activity, verifying correct tax sourcing and rates starting with calendar year 2024. Reviews must be completed by March 31 of the following year, annually, with errors requiring amended returns filed by April 20. As such, the review for calendar year 2024 is due March 31, 2025 and amended returns are due by April 20. 2025.

A $6,000 penalty applies for non-compliance but may be waived if 95% of transactions were correctly sourced and taxed.

- LS