SPRINGFIELD, Ill. -- Attorney General Lisa Madigan and the Illinois Department of Revenue (IDOR) have announced that their joint ongoing criminal enforcement operation to prosecute gas station owners who evaded sales tax payments has recovered more than $100 million for the state.
The ongoing operation led by Madigan's Special Prosecutions Bureau and IDOR's Bureau of Criminal Investigation was launched to recoup sales tax losses from gas stations throughout Illinois that underreported revenues to avoid paying taxes to the state. Of the 50 gas station owners that have been charged to date, 40 defendants have been already convicted, many of whom were imprisoned. Additionally, tens of thousands of tax dollars have been recouped through IDOR audits.
The crackdown on gas station owners has led to a new law in Illinois to penalize these criminals. The law, which took effect in January, established stronger penalties and strengthened prosecutors' ability to pursue Illinois businesses and retailers that evade their sales tax bills. The law created the new crime of sales tax evasion and imposed graduated penalties based on the amount of sales taxes that were evaded.
The collection of unpaid sales taxes is part of Madigan's ongoing work to collect record revenues for the state of Illinois amid a fiscal crisis. Since Madigan took office, her office has amassed more than $10 billion in total collections through a combination of litigation and collection efforts.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.