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Direct Pay Permit

Direct Pay is an arrangement between the Department of Revenue and taxpayers which represents a cost-saving alternative to traditional sales and use tax compliance methods.

Under the parameters of this program, approved taxpayers receive a Direct Pay Permit (ST-46).  Through established guidelines, a taxpayer is then allowed to purchase items without initially paying tax to their supplier(s) on these transactions.  Instead, the permit holder performs a monthly determination of appropriate state and local taxes due on the cumulative transactions and remits directly to the Department on their own sales tax return.  

Direct Pay is a term often used interchangeably with ‘Managed Compliance Agreement’ (MCA) or ‘Single Use Tax Compliance Agreement’ (SUTCA).  These similar arrangements are utilized by other states to simplify a taxpayer’s use tax calculation and remittance.  In Illinois, approval for a Direct Pay Permit involves a thorough review process, typical of a sales and use tax audit.  The Department’s Audit Bureau administers the program and addresses all related inquiries.

Step 1: Review the following information about the program:
Step 2: Contact the Audit Bureau to request an Application (ST-45), discuss further details of the program, or direct any questions about direct pay to: