September 1, 2010
The Illinois Department of Revenue has announced a tax amnesty program that will be in effect from October 1, 2010 through November 8, 2010. The program will apply to taxes due to the State of Illinois for the taxable period occurring after June 30, 2002 and prior to July 1, 2009.
The Illinois Tax Delinquency Amnesty Act authorized the Department to provide taxpayers the opportunity to pay certain outstanding tax liabilities and to have penalties and interest waived for taxes paid in full during the amnesty period.
Liabilities eligible for amnesty are taxes due from periods ending after June 30, 2002 and prior to July 1, 2009.
To qualify for amnesty, taxpayers must make full payment of eligible tax amnesty between October 1, 2010 and November 8, 2010. If a taxpayer owes penalties and interest, he or she does not qualify for the amnesty program. Penalties and interest charges will be doubled if a taxpayer fails to pay an eligible tax obligation during the amnesty period.
A taxpayer may: (1) pay electronically through the Department website; (2) pay individual income tax with a credit card; (3) mail a check or guaranteed remittance (such as a money order) to the Department; or (4) pay in person at an Illinois Department of Revenue office location.
For each applicable period, a taxpayer must: (1) complete an original return if the taxpayer failed to file a tax return, or complete an amended return if the taxpayer incorrectly reported liability due on a previously filed return; (2) attach any supporting documentation; and (3) pay the tax balance for each return in full.
Taxpayers are instructed to pay the eligible tax liability reported on each return with a separate check or guaranteed remittance. The return and full payment must be made between October 1, 2010 and November 8, 2010.
The return, any required supporting documentation and payment may be brought to any Illinois Department of Revenue office or mailed to the address on the return. Payments should be made payable to the “Illinois Department of Revenue.” If mailed, the postmark must reflect a date between October 1, 2010 and November 8, 2010.
The following taxes do not qualify for amnesty: (1) taxes not collected by the Department such as property, estate, franchise and insurance taxes, and local taxes paid directly to the local government; (2) any balance due on returns for periods ending on or before June 30, 2002, or on or after July 1, 2009; and (3) International Fuel Tax Agreement liabilities.
Please comment here if you have any questions.
The above info has 2 conflicting statements–which one is correct? Paragraph #2 states “–penalties and interest are waived–” and paragraph #4 states “If a taxpayer owes penalties and interest—-does not qualify for the amnesty program.”
My understanding of the amnesty program is that if the taxpayer already has penalty and interest assessment from a prior notice, then the amnesty program will not apply as taxpayer has already been identified as being delinquent. The amnesty program is for taxpayers that are voluntarily coming forward.
what about people who are on a payment plan agreement with the state? will I still get my penalty and interest doubled?
Carolyn - Since you are already on a payment plan with the state, I doubt that this would hurt you. However, this is not clear from what I have seen. It is probably worth a phone call to the state to make sure.
Another question for the state is can you eliminate any penalty or interest you are paying under installment plan if you pay by the date required if you have the cash or can borrow it.
A friend who is self-employed is wondering if he’s eligible for the amnesty on income from the first 2 quarters of 2009, since the amnesty only applies to periods thru July 1, 2009. Do you know if he’s eligible? Or if the law only gives amnesty for self-employed income for 2008? Thanks.
Alyce - It is our understanding that the Amnesty only applies for periods through June 30, 2009. He should be eligible. He does not have much time left though.
I’ve just learned about the recently-expired Illinois Amnesty program. Has Illinois conducted similar programs in the past, and is it possible another Amnsty program may be offerred this year?
Thanks for your question, Roger. There is always a possibilty, but we have not read or heard about there being anything in the pipeline regarding another amnesty program anytime soon.
I filed my 2008 taxes in late September 2010…before the 10/1 date. I included a check for an underpayment amount. I just received a letter from the IL DOR stating that I owe penalty and interest on the amount of the underpayment. By the letter of the Amnesty announcement, I will owe the penalty and interest…even though I filed my taxes with a check for the amount due well after the amnesty period was announced. Is anyone aware of other individuals in similar circumstances who have had their penalty and interest charges waived?