Illinois Individual Tax Amnesty Enacted

Illinois has enacted legislation requiring the Department of Revenue to establish a use tax amnesty program for the period January 1, 2011, through October 15, 2011, for individual taxpayers. Under the amnesty program, individuals will not be held liable for interest or penalties or subject to civil or criminal prosecution upon the payment of eligible taxes due for any taxable period ending after June 30, 2004, and before January 1, 2011, subject to certain limitations.

This amnesty program does not apply to businesses or any taxpayers who are a party to any criminal investigation or to any civil or criminal litigation that is pending in any circuit court or appellate court or the Supreme Court of Illinois for nonpayment, delinquency, or fraud in relation to eligible taxes. Amnesty will not be granted to taxpayers who are under audit for eligible taxes or who have been contacted in writing by the department concerning eligible taxes before the taxpayer reported and paid the eligible taxes. However, see information regarding a general amnesty program ( .

The new legislation also allows individuals to report their use tax liability on their standard individual income returns instead of filing monthly use tax returns, beginning with years ending on or after December 31, 2010 , if their use tax liability does not exceed $600. (P.A. 96-1388 (S.B. 459), effective July 29, 2010

Posted on August 23, 2010