After sitting on the governor’s desk for nearly two months, tax amnesty legislation has finally been passed in Illinois. Senate Bill 377 created a tax amnesty period beginning October 1, 2010 and ending on November 8, 2010.
Benefits of Applying for Amnesty
Taxpayers who qualify and take advantage of this amnesty program can get all of their penalties and interest waived and will avoid civil or criminal prosecution for any liabilities reported under the amnesty program.
Eligibility for Illinois Tax Amnesty
Any taxes collected by the Illinois Department of Revenue for tax periods ending after June 30, 2002 and before July 1, 2009 are eligible for amnesty. Taxpayers who are
not eligible for amnesty are:
- Those under criminal investigation relating to any Illinois state tax
- Taxpayers who are a party to any pending civil or criminal court case for nonpayment, delinquency, or fraud relating to any Illinois state tax
Double Penalties for Not Participating
If a qualifying taxpayer fails to report and pay eligible tax debts under the amnesty program, any interest and penalties will be doubled. So, if you think you qualify for amnesty you should make every effort to take advantage of the program to avoid this stiff increase in penalties and interest for not participating.
The increased penalties and interest would not apply to taxpayers who later have a change in federal income that impacts their Illinois income tax liability. The bill also states that refunds can be granted later for items unrelated to issues for which amnesty was claimed.
How to Apply for Amnesty
The Illinois Department of Revenue is sending out notices to taxpayers who qualify for the amnesty program. That notice or letter should give you instructions on how to send in any returns or payments under the amnesty program. In order to be considered as a payment under amnesty, the payments must be made within the amnesty period (after October 1, 2010 but before November 8, 2010). Amnesty payments must be postmarked by November 8, 2010.
If you have not received a notice, but you think that you qualify for amnesty, contact the Illinois Department of Revenue. The fact that you did not receive a notice will not be accepted as an excuse for avoiding the increased penalties and interest that apply to those who fail to participate in the amnesty program. More details on the amnesty program will be available on the Department's website closer to the beginning of the amnesty period.