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Illinois use tax on pattern coins?

BrolBrol Posts: 266 ✭✭
in World & Ancient Coins Forum
Hi,

here in Illinois we don't have sales tax on coins and bullion.
But in 2013 I bought one silver World pattern coin from one auction in Europe. They send me a coin with Fedex and with the coin I got a letter to pay Custom fees. I paid immediately with the check.
This year after filling my income and state tax return, I received letter from Illinois Department of Revenue (IDOR), that I didn't pay use tax on my pattern coin. Probably I will get a bill to pay use tax + penalties + interest on total.

I didn't knew that my pattern coin with obverse and reverse and egde is not considered a coin by the tax authority.

Anyone have similar experiences or suggestions what to do?

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    cwtcwt Posts: 292 ✭✭✭
    I've had similar experiences. I have found that most can be cleared up with a phone call.
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    SmEagle1795SmEagle1795 Posts: 2,135 ✭✭✭✭✭
    I've fought the Illinois use tax letters each time by sending a letter back stating that collectable coins are exempt, and that I tried to find the coin from dealers in Illinois but none were available.

    The Fedex customs fees are normal but you should be able to get out of the tax. I haven't heard back and I've sent the letter every year for the last three years after receiving the "audit initiation" notification for use tax.
    Learn about our world's shared history told through the first millennium of coinage: Colosseo Collection
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    BrolBrol Posts: 266 ✭✭
    Thank you. Yes, I received "audit initiation" letter. I will try to send them explanation that coins are exempt from use tax. Currently IL government is short of income and they are trying all the ways to collect more tax.
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    pruebaspruebas Posts: 4,326 ✭✭✭✭✭
    To my mind, the more disturbing fact is that FedEx is providing import records to the State of Illinois, Department of Revenue.



    By the way, FedEx adds a "processing" fee to Customs clearance, so while there may be no Customs fee due, a $35 bill is still payable (at least in my case).
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    BrolBrol Posts: 266 ✭✭
    I actually paid $35. So I guess it was fedex fee, not customs fee. I lost the actual bill since purchase, but I remember that number pretty good.

    I think it's not Fedex who is providing import records, but IDOR is requesting and getting information from Customs.
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