Illinois looking to collect millions in delinquent taxes with amnesty program

Anyone who owes the state back taxes that were due between June 30, 2018, and July 1, 2024, can take advantage of a 48-day amnesty period beginning soon.

Delinquent taxpayers have between Oct. 1 and Nov. 17 to settle up with the state without penalty.

“Despite the collection tools available to (the Illinois Department of Revenue), amnesty programs have historically generated a lot of revenue,” said IDOR spokesperson Maura Kownacki. “They are an effective tool to encourage taxpayers to report tax that had been unreported, resolve protests and accelerate and increase the amount of tax that would have be collected.”

The state has offered similar tax amnesty programs before in 2003, 2010 and most recently in 2019 after approval by the state legislature.

During the 2019 initiative, the state recouped nearly $360 million for state and local coffers, IDOR officials reported. That included more than $170 million in corporate income taxes and almost $51 million in individual income taxes.

Another $130 million in back sales and use taxes were also paid during the last amnesty period, records show. However, officials note a separate remote retailer amnesty program for Retailers’ Occupation Tax (sales tax) will take place from Aug. 1, 2026, through Oct. 31, 2026.

The program this year isn’t as broad as it has been in the past and doesn’t include amnesty for those who owe local governments back taxes, state officials said.

“Eligible liabilities include any tax liabilities, other than motor fuel, that the state of Illinois imposes, and the department collects,” Kownacki said.

Additional program details are available online at tax.illinois.gov.

Even tax liabilities that have already gone to collection are eligible for amnesty, state officials said. Taxpayers can contact the collection agency for more information about the amnesty program and the proper paperwork.

Payments can be made online, by phone or by mail. Information on payment methods are also available on the state’s website.