Large Tobacco Tax Refund For Illinois Distributors!

As Tobacco Tax Refund consultants, we are constantly on the lookout for novel tobacco tax refund opportunities for tobacco wholesalers or distributors. Recently, we blogged about a unique refund opportunity for wholesale distributors in New Jersey. Armed with a successful refund theory that got taxpayers back tens of millions in New York, we are eager to get money back in your state as well.

Our first theory that we believe should be successful in Illinois relates to which items, state whole tobacco tax should apply to. In Florida, a case called Micjo stands for the concept that tobacco tax should only apply to tobacco and not other charges such as federal excise tax and shipping. Several other successful refund claims have validated this proposition.

We also have information that was lead us to another innovative theory. Our “manufacturer price” theory was used in New York, and is a relatively simple concept. In most states, such as Illinois, the tax should be calculated on the sale from the manufacturer to the distributor, not on the sale from another distributor to your distribution company. If you are buying tobacco from anyone other than the manufacturer, you are likely entitled to a substantial refund.

The price at which the manufacturer sold to another distributor can be easy or difficult to determine. Some distributors list the amount they paid for the tobacco from the manufacturer. In those situations, the refund calculation is an easy one. However, putting the documentation and dealing with the state agency is not so easy. That’s where we come in. All we need is your tax returns, the backup support, and we deal with it from there.

If the sales price from manufacturer to distributor is not listed then the calculation is not quite as easy. Luckily for you, we have access to proprietary information that can be used to determine the manufacturer’s price to the original distributor. While it may sound far-fetched, this method was successful in recouping tens of millions of tobacco tax refunds for New York tobacco wholesalers. We file the refund, deal with the state agency, and work with counsel if necessary to litigate the case and get your money back. Better yet, we take refund cases on contingency so the risk is on us!

In addition, if you are located in Alaska, California, Colorado, Connecticut, Delaware, Indiana, Iowa, Maine, Montana, New Hampshire, Oregon, North Dakota, Utah, Wisconsin, or other states with similar laws then you might have a refund based on our theory and proprietary information. Give us a call to get started today!

About the author: Mr. Donnini is the president and founder of Tobacco Tax Refunds, Inc. He is also multi-state sales and use tax attorney and an associate in the law firm Moffa, Gainor, & Sutton, PA, based in Fort Lauderdale, Florida. Mr. Donnini has extensive knowledge handling wholesale tax controversy and refunds.

In his law practice Mr. Donnini's primary practice is multi-state sales and use tax as well as state corporate income tax controversy. Mr. Donnini also practices in the areas of federal tax controversy, federal estate planning, Florida probate, and all other state taxes including communication service tax, cigarette & tobacco tax, motor fuel tax, and Native American taxation. Mr. Donnini obtained his LL.M. in Taxation at NYU. Mr. Donnini is licensed to practice law in Florida. If you have any questions please do not hesitate to contact him via email [email protected] or phone at 954-639-4496