Plaintiff filed a claim against Defendant for damages and civil penalties pursuant to Illinois False Claims Act, for failure to collect and remit use tax on Defendant's Internet and catalog sales to Illinois customers. Court properly found, after bench trial, determination of no liability as to Defendant's Internet sales. The law on whether sufficient physical presence has been established to require collecting use tax is open to interpretation depending on facts of each case, and Defendant made an honest effort to determine its tax liability. Defendant's failure to reexamine its tax liability in light of its catalog requirement was an act of reckless disregard. Defendant relied on advice of tax and legal professionals in not collecting use tax on catalog sales. (CONNORS and MIKVA, concurring.)
Illinois Appellate Court
Civil Court
False Claims Act