LSE-1-X, Instructions for Amended Tax Return for Vehicle Leasing Companies

You must file Form LSE-1-X if you are a leasing company registered to file Form LSE-1, Tax Return for Vehicle Leasing Companies, and you need to

• correct your Form LSE-1 to pay more tax;
• request a credit for tax you overpaid (Do not file Form LSE-1-X for amounts less than $1. Do not use the credit until we notify you that your credit has been approved.);
• respond to a notice or bill;
• make corrections to line items but not change the amount of tax due.

If your original return needs to be transferred to a different reporting period within the same account, do not use Form LSE-1-X. You must send us a letter requesting the correction.

You must file one Form LSE-1-X for each reporting period you want to amend. You cannot file one Form LSE-1-X to amend multiple reporting periods.

The period for which you can claim a credit for an overpayment depends on when you file your Form LSE-1-X. If you file this amended return between January 1 and June 30 of this year, you may file a claim for credit for the amounts you overpaid during the current year and previous 36 months. Beginning July 1, you may file a claim for the amounts you overpaid during the current year and the previous 30 months.

For any period included in a claim for credit or refund for which the statute of limitations for issuing a notice of tax liability under the Retailers’ Occupation Tax Act will expire less than six months after the date a taxpayer files the claim for credit or refund, the statute of limitations for issuing a notice of tax liability is automatically extended for six months from the date it would have otherwise expired.

There is no deadline for making additional payments; however, the longer you wait to pay, the more interest and, when applicable, penalty you will owe. For more information about penalties and interest, see Publication 103, Penalties and Interest for Illinois Taxes, available on our website at tax.illinois.gov.

You can use at MyTax Illinois at mytax.illinois.gov to file Form LSE-1-X, Form LSE-2, Original Motor Vehicle Lease Information and Form LSE-3, Lease/Rental Payments for Certain Titled or Registered Property electronically and make an electronic payment of any tax due.

See below and the instructions for Form LSE-2 and Form LSE-3 for additional information to calculate your tax due.

If you need help, visit our website at tax.illinois.gov.

If you cannot find the answer to your question, you can call us weekdays between 8:00 a.m. and 5:00 p.m. at 1 800 732-8866 or 217 782-3336 or 1 800 544-5304 (TTY).

Language assistance services are available upon request and are free of charge.

Step 1: Figure tax

Lines 1 and 2: Use Form LSE-2 to report the total amount of additional reportable amounts paid by your lease customers that were not calculated at the start of the qualifying lease, and enter the total tax due. Use Form LSE-3 to report receipts for leases or rentals of items of titled or registered property that are subject to tax on lease receipts of certain titled or registered property (e.g., ATVs, off-road motorcycles, trailers other than semitrailers, etc.) and the total tax due. Combine the two totals from Form LSE-2 and Form LSE-3 and enter on Lines 1 and 2.

Line 3: Complete this line only if you originally filed and paid the tax owed by the due date. If you filed on time, figure your discount at the rate of 1.75 percent (.0175) of the amount you paid on time. Beginning with returns due on or after January 1, 2025, the maximum discount you may claim per month is $1,000.

If you are increasing the amount of tax due, you may not increase the amount of your discount unless the increased tax due is paid on or before the due date of the original return. If you are decreasing the amount of tax due, you will need to refigure the amount of discount to which you are entitled based on your new figures.

Line 4: Subtract Line 3 from Line 2.

Line 5: If you collected more tax than is due on the transactions reported on your Form LSE-2 or Form LSE-3 entries, enter the total amount you overcollected.

Line 6: Add Lines 4 and 5.

Line 7: If you have a credit memorandum or prior overpayment and you wish to use it towards what you owe, enter the amount you are using.

Line 8: Subtract Line 7 from Line 6. This is your total tax due after credits.

Line 9: Enter the total amount you have paid. This figure includes the amount you paid with your original Form LSE-1, any subsequent amended returns, and any assessment payments you have made. Reduce the total amount paid by any credit or refund of tax you have received for transactions reported here.

Lines 10 and 11: Compare Line 8 and Line 9. If Line 9 is greater than Line 8, enter the difference on Line 10. This is the amount you have overpaid. If Line 9 is less than Line 8, enter the difference on Line 11. This is the amount you have underpaid. Pay this amount when you file the return. We will bill you for any additional penalty and interest that we calculate is due.

Penalties and interest information

If, on this amended return, you are increasing the amount of tax due, we will bill you for any additional penalty and interest that we calculate is due.

If, on this amended return, you are reducing the amount of tax due, we will recalculate any penalty and interest that is due and include the recomputed amounts in determining the amount you have overpaid.

You owe a late filing penalty if you do not file a processable return by the due date, a late payment penalty if you do not pay the amount you owe by the original due date of the return, a bad check penalty if your remittance is not honored by your financial institution, and a cost of collection fee if you do not pay the amount you owe within 30 days of the date printed on a bill that we send you. We will bill you for any amounts owed. For more information, see Publication 103, Penalties and Interest for Illinois Taxes, available on our website at tax.illinois.gov.

LSE-1-X Instructions (R-01/25)