The Illinois Department of Revenue is administering a Remote Retailer Tax Amnesty Program from August 1, 2026, through October 31, 2026, providing eligible remote sellers with an opportunity to resolve historical Illinois sales tax liabilities.

Eligibility 

The program is available to remote retailers with no physical presence in Illinois that have unpaid Illinois Retailers' Occupation Tax liabilities arising from sales to Illinois customers between January 1, 2021, and June 30, 2026.

Generally, eligible retailers are those that exceeded Illinois economic nexus thresholds based on either gross sales to Illinois customers or the number of transactions with Illinois customers during the applicable periods.

Key Benefits of Participation

The amnesty program recognizes the compliance challenges many remote retailers have experienced under Illinois' destination-based sourcing rules.
Eligible taxpayers may report and remit historical liabilities using simplified statewide tax rates of:

• 9.0% for general merchandise, and
• 1.75% for qualifying food, drugs, and medical supplies.

In exchange, the Illinois Department of Revenue will waive applicable penalties and interest associated with qualifying liabilities.
This relief may be particularly valuable for remote retailers that:

• Have not previously registered or collected Illinois tax,
• Are uncertain about their historical compliance obligations, or
• Lack sufficient records to determine the correct local jurisdiction for prior sales.

Taxpayers that do not participate may face future audit exposure, including assessments of tax, penalties, and interest. In certain circumstances, Illinois may apply a tax rate of up to 15% when the proper destination for a sale cannot be established.

Alternative Relief Options May Be Available

Illinois also offers programs outside of the amnesty program that may allow certain taxpayers to voluntarily disclose prior tax liabilities. Depending on the facts and circumstances, these alternatives may provide benefits that differ from those available through the amnesty program. Due to these nuances, one program may be more beneficial than another.

If you have Illinois tax liabilities, RubinBrown can help review eligibility and potential benefits of each program. We are available to provide you with a detailed consultation regarding the application of the program to your business, evaluate viable alternatives, and assist in preparing any required filings.

Published: 08/24/2026

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