ILLINOIS FEDERATION OF DOG CLUBS AND OWNERS

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Attention:

It has happened here in Illinois. A Senior Investigator and her armed escort from the Illinois Department of Revenue Bureau of Criminal Investigations has shown up on the door steps of a person who holds a Kennel License in Illinois demanding to see their dog sales records and accusing them of criminal wrongdoing. The investigator knew exactly how many dogs this person had sold in the past 36 months. What they didn't know is that most of the dogs sold by this individual were sold to out of state clients, so no sales tax needed be collected on over 75% of their dog sales. This is not a puppy mill operation. This is a breeder of over 30 years who has quality dogs, shows dogs, and has a boarding kennel. They are just like you or I. The Investigator forced this individual to show up in Springfield, obtain a sales tax license for the sale of general merchandise and then proceeded to go thru their records from the Department of Agriculture for the past 3 years. By the end of the day, they had to pay all back sales taxes, fines and interest on their fines.

>We had heard last year that the Illinois Department of Revenue had requested a list of all individuals who were licensed as dog breeders in the state from the Department of Agriculture - I guess it is true. This person was made an example. They were told that they were being made an example and others would soon follow.

>A person at the Department of Revenue told this individual that they had been instructed to bleed anyone to get money as the state is so broke.

>What can you do? If someone knocks on your door and shows you a business card or a badge, have them wait outside and you should call your accountant and or your lawyer. Don't do anything without legal representation. Think about only selling your dogs out of state - so that no sales tax needs to be collected. Once they knock on your door, the statue of limitations is 3 years that they can request your records.

Steve Hayden
President, IFDCO