Previously, we advised of actions filed by the Regional Transportation Authority (RTA), the city of Chicago and Cook County against multiple companies as “respondents in discovery.” These actions all involved the proper sourcing in
Illinois of purchases made through third-party order processing and acceptance contractors for local sales tax purposes. A new lawsuit filed by the RTA in the Circuit Court of Cook County against American Airlines Group, Inc. (“American”), and the city of Sycamore, Illinois, gives an indication of the type of relief that might be sought against the respondents in discovery if they are eventually named as defendants. (The respondents in discovery must be named as defendants within six months of the date they were named as respondents in discovery.)

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Client Alert 2014-085