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Illinois Sales Tax And Corporate Tax Exemption

 

STEPS TO APPLYING FOR ILLINOIS SALES TAX EXEMPTION

Is a nonprofit in Illinois eligible for tax exemptions in the state?

If the not-for-profit organization is operated entirely for a charitable, religious or educational purpose, it may apply for an Illinois exempt (E) number. An E number allows for the charity to be exempt from sales tax on most purchases relating to the charity. However, if a charity sells items, it must collect sales tax.

How do IL nonprofits apply for a tax exemption E number?

There is no application form. You send a cover letter to the IL Department of Revenue, written on your organization’s letterhead, requesting the tax exemptions. Include with the letter copies of the charity’s articles of incorporation, bylaws, IRS letter granting tax-exempt status, an explanation of the charity’s activities and goals.

Learn more at our Illinois Taxes pages.

How do I use my IL sales tax exemption E number?

Once a charity exemption request is accepted, the department will mail you an E number. Any purchases made by your organization that relate to its charitable purpose are exempt from sales tax. You present the E number to the vendor at the time of purchase.

How much does it cost to apply for the tax exemption in Illinois?

There is no fee.

How long does it take to receive my IL Sales Tax Exemption E Number?

Allow three or four weeks to receive your organization’s E number. It will be a nine digit number beginning with the letter E.

Do I have to renew the Illinois exemption annually?

An Illinois nonprofit Charity will need to renew its E number ever five years. It is the same process as the original application.

Where do I send my exemption request?

Local Government Services Bureau MC 3-520
IL Department of Revenue
101 West Jefferson Street
Springfield, IL 62702
Phone: (217) 782-8881
Fax: (217) 524-0526

This comprehensive guide to obtaining and maintaining 501c3 status from the IRS includes information on how to prepare your nonprofit to apply for 501c3 status, as well as information about the forms and fees required by the IRS.

This guide overviews and includes the special tax-exempt language a 501c3 nonprofit organization must include as part of its articles of incorporation. 

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