On June 5, 2019, Illinois Governor J.B. Pritzker signed legislation enacting a tax amnesty program scheduled to run from October 1, 2019 through November 15, 2019.
The amnesty program provides a complete waiver of interest and penalties on eligible tax liabilities. Only taxes due for a taxable period ending after June 30, 2011 and prior to July 1, 2018 are eligible for amnesty. Taxpayers may participate in the amnesty program selectively, provided that the taxpayer completely satisfies its eligible liability for the tax type and tax period for which amnesty is sought. For example, a taxpayer may participate in the amnesty program with respect to 2013 Illinois Income Tax, but not 2014 Illinois Income Tax or may participate with respect to Illinois Income Tax but not Illinois Retailers Occupation Tax.
In addition to waiving interest and penalties due on applicable outstanding taxes, the Department will not seek civil or criminal prosecution for eligible participants of the amnesty program. However, failure to pay all taxes due for the tax type and period selected will invalidate any amnesty granted.
Illinois also offers a voluntary disclosure program, which should also be considered by companies who are currently unregistered for the particular tax type. The voluntary disclosure program limits the lookback to 4 years and allows taxpayers to request abatement of the penalties, but no waiver of interest is offered. Due to nuances such as these, taxpayers may find one program more beneficial than the other, depending on the facts and circumstances.
Taxpayers that may have Illinois tax liabilities should reach out to our State and Local Tax professionals at RubinBrown about the potential benefits of each program. We are available to provide you with a detailed consultation regarding the application of this amnesty program to your business, evaluate viable alternatives and assist in preparing any required filings.
Readers should not act upon information presented without individual professional consultation.
Any federal tax advice contained in this communication (including any attachments): (i) is intended for your use only; (ii) is based on the accuracy and completeness of the facts you have provided us; and (iii) may not be relied upon to avoid penalties.
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