Wal-Mart and Target have run into some tax problems in Illinois. The Chicago Sun Times has reported today that the Illinois Attorney General has sued both retailers for failing to collect — and pay — sales taxes generated by merchandise sold on the companys’ websites. The lawsuit was filed yesterday in Circuit Court for Cook County. The lawsuit charges that Wal-Mart and Target were not charging customers in Illinois who purchased goods on their website with an Illinois sales tax, costing the state lost revenues. Wal-Mart has at least 150 stores throughout Illinois, and apparently did not charge Illinois sales taxes between 1999 and 2002. The state seeks to collect damages in excess of $30,000 from each company, which is a minor irritant to both retailers, and certainly not a major financial concern for either.
This lawsuit appears to be part of a “Whistleblowers” case, in which someone internal to these companies disclosed to state officials that the companies were tax deadbeats on their internet sales.
