The Illinois Department of Revenue recently announced that under the Illinois Tax Delinquency Amnesty Act (the "Act"), taxpayers are allowd to pay outstanding eligible tax liabilities and to have eligible penalties and interest forgiven on taxes that are paid pursuant to the Act. Below are the highlights of the program.
Unpaid taxes that are collected by the Illinois Department of Revenue (“IDOR”) from periods after June 30, 2011, and prior to July 1, 2018 (“the Amnesty Period”) are the tax liabilities eligible for the Amnesty Program. If the required filing and payment is completed between October 1, 2019 and November 15, 2019 (“the Participation Period”), IDOR will waive all eligible penalties and interest. This program does not apply if only penalties and interest are owed.
The Amnesty Program is available for taxpayers who either failed to file a tax return or incorrectly reported the tax liability due on a previously filed return. For those who failed to file a tax return, an original return must be filed. If a taxpayer incorrectly reported a tax liability, the taxpayer must file an amended return to make the necessary corrections.
Unless the tax liability has been referred to a private collection agency, full payment must be made to IDOR during the Participation Period. Payment can be made via mail, in person, or online. If multiple filings are made, IDOR encourages separate payments be made. Otherwise, the taxpayer must clearly identify each tax liability being paid by tax type, tax period, and amount.
The type of payment may be determinative on what tax is owned. IDOR notes that some tax payments must be made by either cash, check, guaranteed remittance, credit card, or ACH debit. Further, income tax credits and net operating loss deductions may be used to reduce tax liabilities. However, the credit or deduction cannot reduce the tax liability to zero.
If a taxpayer overpays, he or she can receive a refund, or in some cases a credit for the overpayment. Pending refunds will not be accepted as payment.
Court and Administrative Proceedings
The Amnesty Program is not available to those who are a party to a criminal investigation or have a criminal or civil case pending for an amnesty-eligible tax collected by IDOR. The program is available, however, if a case is pending with IDOR’s Board of Appeals or Administrative Hearings or the Independent Tax Tribunal.
Taxes that DO NOT Qualify
- Taxes not collected by IDOR (property, estate, franchise, insurance, local, etc.)
- Any balance due on returns before or after the Participation Period
- International Fuel Tax Agreement (ITFA) liabilities
- Motor Fuel Use Tax (MFUT)
- Non-tax liabilities
Items NOT Waived
- Lien filing and lien release fees
- Bad check penalties
- Collection agency service fees
- Penalty and interest amounts (when no tax is due)
- Penalty and interest amounts associated with ITFA and MFUT
Members of the Duggan Bertsch team are avaliable to discuss how the Act may apply to your personal tax situation.
If the above article was of interest to you, please consider reading the following article entitled, IRS Announces Settlement Offers for Certain Micro-Captive Insurance Structures. CLICK HERE to read the complete article!