On June 16, 2025, Governor J.B. Pritzker signed House Bill 275 (PA 104-0006), establishing three separate tax amnesty programs in Illinois. These programs offer penalty and interest relief for eligible taxpayers across various tax types and timeframes.
Department of Revenue Amnesty Program
This program will run from October 1 through November 17, 2025, and applies to taxes administered by the Illinois Department of Revenue for periods ending after June 30, 2018, and before July 1, 2024. Taxpayers who file returns and pay outstanding liabilities during this window will receive a full waiver of penalties and interest.
Taxes not administered by the Department, in addition to other items administered by the Department, such as motor fuel use tax and certain fees not considered taxes, are excluded. Taxpayers under criminal investigation or litigation related to tax fraud or delinquency are not eligible.
The Department has issued Informational Bulletin RY 2026-01 and proposed regulations to clarify eligibility and procedures. Taxpayers may file amended returns to correct prior underreporting, and those with audit liabilities must pay the full amount during the amnesty period to qualify.
Remote Retailer Amnesty Program
Available from August 1 through October 31, 2026, this program covers sales made between January 1, 2021, and June 30, 2026, involving tangible personal property shipped to Illinois customers. Eligible remote retailers — those meeting the tax remittance threshold under the Retailers’ Occupation Tax — may use simplified reporting rates.
Sales subject to the 6.25% state rate are reported at 9% of gross receipts, while sales subject to the lower 1% rate (such as food for off-premises consumption) are reported at 1.75%. Penalties and interest will be waived for taxes paid during the amnesty period. Further guidance from the Department is pending.
Secretary of State Franchise Tax Amnesty
This program runs from October 1 through November 15, 2025, and applies to franchise tax and license fee liabilities for periods ending after June 30, 2019, and on or before June 30, 2025. Upon full payment, the Secretary will waive penalties, interest and potential prosecution.
Note: This program may involve legal considerations. Taxpayers are advised to consult with legal counsel before proceeding.
Your Guide Forward
Cherry Bekaert’s State & Local Tax advisors are here to help you navigate Illinois’ new amnesty programs and assess your eligibility. Participating in amnesty may offer significant savings and help resolve outstanding liabilities. Please contact us with any questions or to discuss how these programs may apply to your business.
