Ill. Admin. Code tit. 86, § 422.135 - Books and Records
a)
Every cultivator shall keep books and records of all sales of cannabis,
together with invoices, bills of lading, sales records, copies of bills of
sale, monthly inventories, inventories prepared as of December 31 of each year,
and other pertinent papers and documents. [35 ILCS 120/7
]
b)
All books and records
and other papers and documents that are required by this Section and the Law to
be kept shall be kept in the English language and shall, at all times during
business hours of the day, be subject to inspection by the Department or its
duly authorized agents and employees. [35 ILCS 120/7
] Records shall be maintained at the physical location of the cultivator. All
books and records kept by a cultivator pursuant to rules adopted by the
Department of Agriculture to implement the Act shall, at all times during
business hours of the day, be subject to inspection by the Department or its
duly authorized agents and employees. The Department shall also have access to
the cultivator's automated data processing and/or point of sale
system.
c)
Books and
records and other papers reflecting gross receipts received during any period
with respect to which the Department is authorized to issue notices of Tax
liability shall, for purposes of this Part, be preserved until the expiration
of that period unless the Department, in writing, authorizes their destruction
or disposal prior to that expiration. The Department will not issue a notice of
Tax liability on and after each July 1 and January 1 covering gross receipts
received during any month or period of time more than 3 years prior to that
July 1 and January 1, respectively. [35 ILCS 120/7
] However, if the Department allows a cultivator to destroy books and records
prior to the expiration of the preservation period, the cultivator is not
relieved of any obligation to maintain books and records under any rule or
regulation adopted by another State agency to implement the Act.
d) Penalties
1)
Any cultivator who fails to keep
books and records or fails to produce books and records for examination, as
required by this Section, is liable to pay to the Department, for deposit into
the Tax Compliance and Administration Fund, a penalty of:
A)
$1,000 for the first failure to
keep books and records or produce books and records for examination;
and
B)
$3,000 for
each subsequent failure to keep books and records or produce books and records
for examination.
2)
The penalties imposed under this
subsection (d) shall not apply if the taxpayer shows that he or she acted with
ordinary business care and prudence. [35 ILCS 120/7
]
Notes
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