To deregister from Illinois sales tax, finish your remaining Illinois Department of Revenue filings, report the account as final, pay or resolve outstanding liabilities, and request closure through MyTax Illinois. IDOR states that most account types can be closed electronically. If you have stopped selling but leave the account open, filing and payment obligations may continue according to the account’s assigned filing requirements.
Illinois requires particular care because its Retailers’ Occupation Tax system distinguishes between in-state and remote retailers. Remote sales that meet the applicable Illinois tax-remittance requirement generally use destination sourcing, while sales sourced from Illinois can use the location of inventory or other selling activity. Illinois is also a home-rule state: local jurisdictions may impose and administer local sales taxes, although IDOR administers the home-rule sales tax collected by the Department. Closing a state account does not replace the need to complete final reporting for the locations and periods in which you made taxable sales.
How to cancel your Illinois sales tax account
Start by reviewing the Illinois sales tax account in MyTax Illinois. On the Summary screen, choose View more account options; under Account Maintenance, choose Request to close account. This is the standard electronic route identified by the Illinois Department of Revenue for requesting account closure.
Before submitting the request, identify the date on which you stopped making sales requiring the account. Complete every required return through that date, mark the applicable return as final, and pay the reported tax, interest, and any other amount due. If the business has more than one tax type, review each account separately because closing a sales tax account does not necessarily close withholding, income, or other Illinois tax accounts.
If you cannot complete the request electronically, IDOR says you may contact Central Registration at 217-785-3707 or REV.CRD@illinois.gov. Have your Illinois Account ID or license number, legal business name, requested cease date, and a clear description of the account or location you want closed available when you contact the Department.
When should you deregister from Illinois sales tax?
Deregister when you have permanently stopped the Illinois activity that created the sales tax obligation, such as ending the business, ending taxable retail sales to Illinois customers, or closing a particular Illinois sales location. A temporary pause is not automatically the same as permanent cessation. The correct treatment depends on whether you still maintain inventory, locations, employees, agents, or other activities that create Illinois filing or tax responsibilities.
Remote and in-state retailers must be analyzed differently. A remote retailer with no Illinois physical presence may have Illinois obligations based on the current tax-remittance rule for sales to Illinois purchasers. A retailer with an Illinois place of business, Illinois inventory used for its own sales, or selling activity in Illinois may have a different sourcing and registration position. Do not close an account merely because one sales channel has stopped if another channel or location still creates Illinois obligations.
The exact cease date and whether registration remains required depend on your facts and the current IDOR rules. Confirm the position with IDOR or ask Sales Tax Compliance USA to review the change before you submit the closure request.
File your final Illinois sales tax return
Yes. When closing a business, IDOR instructs taxpayers to file the final tax form for each applicable tax type and indicate that it is a final return by checking the final-return box on the form. Some returns may not contain a final-return box, so follow the instructions for the specific return assigned to your account.
For Illinois sales tax, the applicable filing commonly involves Form ST-1, Sales and Use Tax and E911 Surcharge Return, together with Form ST-2, Multiple Site Form where required for multiple or changing locations. Report all taxable and nontaxable sales, deductions, tax collected or due, and location information through the final period. For destination-based sales, ensure the destinations and location codes are reported consistently with the sales records.
File the final return for the period in which business stopped, using the due date assigned to that return. There is no single universal final-return deadline for every Illinois account: filing frequency and assigned due dates vary. Check the due date displayed in MyTax Illinois and the current IDOR instructions rather than relying on a general calendar.
How to close a business tax account in MyTax Illinois
Log in to MyTax Illinois and open the relevant business account from the Summary screen. Select View more account options, then select Request to close account in the Account Maintenance panel. Follow the prompts, provide the requested cessation information, and retain the confirmation or submission record.
MyTax Illinois can also be used to maintain business information, file returns, make payments, and manage locations. If you need to end only one sales-tax location while continuing the account for other locations, do not request closure of the entire account. Use the location-maintenance process instead.
If the account cannot be closed through MyTax Illinois, contact IDOR Central Registration. IDOR identifies the same office for questions about opening and closing accounts. A request may require additional review if returns are missing, the account has an unresolved balance, or the requested cease date conflicts with reported activity.
Information needed to close your Illinois tax account
Prepare the Illinois Account ID or license number, legal business name, account type, and the date taxable activity ended. You should also have the final sales records, copies of filed returns, payment confirmations, location codes, and documentation showing when a store, warehouse, fulfillment arrangement, or other relevant activity stopped.
If you are closing one location but not the business, identify the precise location code and cease date. This matters in Illinois because destination-based sales may require reporting by changing location, while sales fulfilled from Illinois inventory or involving Illinois selling activity can be sourced differently.
Before submitting, reconcile gross sales, exempt sales, returns, marketplace sales, tax collected, credits, and payments. If a third party handled filings, obtain the filed returns and account correspondence. Closing the registration does not erase recordkeeping or liability for earlier periods.
How to close an individual Illinois sales-tax location
To close one location, log in to MyTax Illinois, open the ST-1 account, and select View More Account Options. Under Account Maintenance, select Maintain Locations, then select the hyperlinked Location Code for the site you want to close. Enter the location’s cease date and submit the request.
This process is appropriate when the business continues operating elsewhere. Do not close the entire ST-1 account if you still make taxable sales from another Illinois site or remain liable for destination-based sales to Illinois customers.
Review the final return after closing the location. Sales made before the cease date may still need to be reported, and a destination-based location used for reporting may need to remain available for the period containing the sales. If the correct treatment is unclear, confirm it with IDOR before entering the cease date.
Resolve unpaid Illinois sales tax before deregistration
Account closure does not cancel tax that was collected or should have been collected. Reconcile every open period, file missing returns, pay undisputed balances, and address notices, penalties, interest, or proposed assessments. If you cannot pay the full amount immediately, contact IDOR to discuss the available payment or resolution process; do not leave the account inactive without addressing the liability.
Check whether payments were applied to the correct tax type and period. Sales tax obligations can include state and local components, and Illinois home-rule and other local taxes may affect the amount reported for a location. For destination-based sales, verify that the destination, location code, and applicable combined rate were used for the relevant period.
The exact amount due depends on your returns, payment history, and IDOR notices. Sales Tax Compliance USA can help organize the records and filings, but the Illinois Department of Revenue determines the official balance and resolution terms.
Illinois sales tax deregistration deadlines to know
Illinois does not use one universal closure deadline for every retailer and account. The practical deadline is to file the final return by the due date assigned to the final filing period and to submit the closure request promptly after taxable activity ends. Use the due dates shown in MyTax Illinois and the current IDOR instructions for your account.
Do not backdate a cease date simply to stop receiving returns unless the date accurately reflects when the activity ended. A business that continued selling, held Illinois inventory, or maintained another taxable location may have filing obligations after the date an owner expected to close.
Keep proof of the closure request, final return, payment, and any IDOR correspondence. Current filing frequencies, due dates, remote-retailer rules, and local tax requirements can change, so check the current date and instructions on the Illinois Department of Revenue website before acting.
What to do after closing your Illinois account
Save the closure confirmation and download filed returns, account statements, payment records, registration details, and correspondence. Preserve the sales data supporting Illinois sourcing, exemptions, marketplace transactions, and tax collected for the applicable record-retention period. Closing an account does not end the need to respond to a later IDOR notice concerning an earlier period.
Remove Illinois sales tax collection from your checkout, invoices, and tax settings only after confirming that all Illinois obligations have actually ended. If you continue selling to Illinois customers through a different entity, channel, or fulfillment arrangement, analyze that activity separately before disabling collection.
Monitor bank and payment accounts for refunds, rejected payments, or unexpected withdrawals, and forward any IDOR correspondence to the person responsible for tax compliance. If the business structure changed rather than simply ended, IDOR states that the old entity may need to be discontinued and the new entity registered separately.
What happens if you stop collecting without closing?
Stopping collection is not the same as deregistering. The account may remain active, and IDOR may continue to expect returns according to the filing requirement assigned to the account. Missing returns can create notices, estimated liabilities, penalties, interest, and additional work even when the business had no sales.
If you stopped collecting while still making taxable Illinois sales, the business may owe tax that was not collected from customers. Illinois applies different sourcing rules to in-state and remote retailers, and destination-based Retailers’ Occupation Tax may apply to qualifying sales to Illinois purchasers. A local tax obligation may also be involved because Illinois home-rule jurisdictions can impose local sales taxes.
File the required returns, report zero activity only when zero is accurate, correct any undercollection, and request closure or location cessation through MyTax Illinois. If the business stopped activity earlier but the account remained open, the exact filing and liability position depends on the account history; confirm it with IDOR or have a compliance professional review it.
Not sure how this applies to your business? We handle US sales tax registration, filing and remittance for ecommerce sellers as a fully managed service, for one fee. Book a free consultation and we will review your own position with you.
Illinois sales tax closure situations and the action generally required
| Situation | Illinois treatment and next action |
|---|---|
| Entire business permanently stops taxable Illinois activity | File the final applicable return, identify it as final when the form allows, resolve outstanding liabilities, and request closure of the relevant account in MyTax Illinois. |
| One Illinois sales-tax location closes but other activity continues | Use ST-1 account maintenance and Maintain Locations to select the location code, enter the cease date, and close only that location. |
| Remote retailer continues selling to Illinois customers | Do not close solely because there is no Illinois physical presence. Review the current remote-retailer tax-remittance rule and destination-based ROT obligations. |
| Retailer has Illinois inventory or another Illinois place of business | Analyze the in-state activity and sourcing separately. Sales fulfilled from Illinois inventory or involving Illinois selling activity may not receive the same treatment as remote sales. |
| Business has sales to multiple Illinois destinations | Retain destination, address, location-code, and rate records. Destination-based sales may require reporting by changing location and may include state and local ROT. |
| Account has missing returns or unpaid tax | Complete delinquent filings and address the balance or notices before treating deregistration as complete. Account closure does not eliminate prior-period liability. |
Frequently asked questions
How do I cancel my Illinois sales tax account?
Log in to MyTax Illinois, open the account from the Summary screen, select View more account options, and choose Request to close account under Account Maintenance. File the final applicable return, pay or resolve outstanding amounts, and retain the confirmation. If electronic closure is unavailable, contact IDOR Central Registration at 217-785-3707 or REV.CRD@illinois.gov.
How do I close my Illinois sales tax permit?
Use the account-closure function in MyTax Illinois rather than simply stopping collection. Complete all returns through the actual cessation date, mark the final return where the form provides that option, and resolve unpaid tax, penalties, interest, or notices. The exact cease date should match the facts of your business.
How do I deregister from Illinois sales tax?
Deregistration normally means completing the final filing obligations and requesting closure of the Illinois Department of Revenue sales tax account through MyTax Illinois. If only one location is ending, close the location rather than the entire account. Confirm the current IDOR procedure if your account has multiple tax types, locations, or unresolved filings.
How do I close a business tax account in MyTax Illinois?
From the MyTax Illinois Summary screen, choose View more account options, then select Request to close account under Account Maintenance. Follow the account-specific prompts and keep a record of the submission. Separate tax accounts may require separate closure requests.
Do I need to file a final Illinois sales tax return when closing my business?
Yes. IDOR instructs businesses to file a final tax form for each applicable tax type and identify it as final when the form has a final-return box. For sales tax, complete the required ST-1 and any applicable location reporting through the final period and use the due date assigned to that filing.
What form do I use to cancel an Illinois Business Tax registration?
Most account types can currently be closed electronically in MyTax Illinois. IDOR also identifies Form REG-3-C, Business Information Update, for certain business-information maintenance requests, and Central Registration can advise whether a paper form is appropriate for your circumstances. Do not assume REG-3-C is the correct route for every sales tax closure; confirm with IDOR if the electronic closure option does not fit your account.
How do I close a sales-tax location in Illinois?
Log in to MyTax Illinois, open the ST-1 account, select View More Account Options, choose Maintain Locations under Account Maintenance, and click the hyperlinked Location Code for the site. Enter the cease date and submit the request. This closes the selected location while allowing the broader account to remain open for continuing activity.
What happens if I stop collecting Illinois sales tax without closing my account?
The account may remain active and IDOR may continue to expect returns. You could receive delinquency notices or incur tax, penalties, and interest if returns are missing or taxable sales continued without collection. File the required returns, address any undercollection or balance, and formally request account or location closure.
How we handle this for you
Because Illinois is a home-rule state, local jurisdictions there can administer and audit their own tax separately from the state, which is where doing this yourself usually stops being viable. We are a managed service: our team registers you with the Illinois Department of Revenue, prepares and files your returns, and keeps you compliant period after period. You get one point of contact and one invoice — you do not get another dashboard to learn.
See our sales tax compliance services, check where you have obligations with the nexus calculator, or talk to us about Illinois.
Official sources
- https://tax.illinois.gov/businesses/close.html
- https://tax.illinois.gov/programs/mytax/help/using-mytax-illinois.html
- The exact position here depends on your own facts, so it is worth confirming with the state directly or talking to us about your situation.
- https://tax.illinois.gov/research/publications/pubs/overview-of-destination-based-sales-tax.html
- https://tax.illinois.gov/research/taxinformation/sales/rot.html
- https://tax.illinois.gov/research/taxinformation/sales/destination-based-sales-tax-assistance.html
Reviewed by Paul le Roux, CA(SA). Sales Tax Compliance USA handles US sales tax registration, filing and remittance for cross-border and domestic ecommerce sellers as a fully managed service.
This page is general information for educational purposes and does not constitute legal or tax advice. Sales tax rules change and depend on your specific facts. Consult a qualified tax professional about your own position.
Related guides
Other Illinois guides: Amazon FBA · Audit defence · Back sales tax · Economic nexus · Filing · Foreign sellers
Deregistration in nearby states: Missouri · Indiana
Selling into several states? Check where you have crossed a threshold with the free nexus diagnostic, see the full 51-state threshold table, or browse every state guide.