Illinois Department of Revenue Announces Tax Amnesty Program

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By Elizabeth Morataya

Tax Amnesty Program

The Illinois Department of Revenue announced the implementation of the Illinois Tax Delinquency Amnesty Act beginning October 1, 2019. This amnesty program provides relief to Illinois taxpayers that have incurred eligible tax liabilities stemming from the period between July 1, 2011 and June 30, 2018. The taxpayers that pay their eligible tax liabilities in full will have all related penalties and interest waived. To take advantage of this amnesty program taxpayers have until November 15, 2019 to file the required paperwork and pay off their tax liabilities in full.

To participate in the amnesty program, taxpayers that have an existing tax liability for the periods covered must make a payment in full. This payment can be made by mail, in person at any Illinois Department of Revenue office location, online with a bank account via the MyTax.Illinois portal, or online via credit card (individual income tax liability only). For taxpayers that failed to file a return, an original return with supporting documentation must be filed with the Illinois Department of Revenue at the address listed on the return with payment in full. For taxpayers that incorrectly reported the liability due, an amended return with supporting documents must be filed with the Illinois Department of Revenue at the address listed on the return with payment in full.

Taxpayers are still eligible for the program even if collection of their liability has been referred to a private collection agency. In this situation taxpayers must make their payment in full through the private collection agency and not the Illinois Department of Revenue. Taxpayers in this situation are advised to contact the private collection agency directly to determine the total amount of eligible amnesty debt.

When making payments for multiple eligible tax liabilities, the Illinois Department of Revenue encourages taxpayers to make separate payments for each tax liability being paid. If a combined payment is made, then the taxpayer must clearly identify the eligible tax liability being paid by tax type, tax period and amount. Otherwise, payments will be applied according to standard department procedure, which may result in payments being applied to ineligible periods.

David Harris, the Illinois Department of Revenue Acting Director, said, “[n]ow is an excellent opportunity for taxpayers with tax liabilities to pay what they owe and come into compliance with the law.” Mr. Harris goes on to say that. “[b]y taking advantage of this amnesty program, taxpayers can eliminate any eligible tax debts owed, without penalty or interest, [which] allows them to have a clean tax slate with the State of Illinois.”

If you or someone you know would benefit from this program, please contact Anthony J. Madonia & Associates and we can walk you through the procedure.