Illinois is launching a new Amnesty Program for Remote Sellers with an eligible period of January 1, 2021 – June 30, 2026. Taxpayers who qualify will be given the opportunity to report and remit Retailers’ Occupation Tax (ROT) at a simplified single rate (9% for non-food and 1.75% for food sales) rather than reporting and remitting at the state and local rates that would be expected otherwise. The State of Illinois also agrees that they will not assess penalties or interest on transactions covered under the Amnesty Program.
In order to qualify for amnesty under this program, remote retailers must have had economic nexus with Illinois for all or part of the amnesty period between January 1, 2021, and June 30, 2026. In addition, taxpayers must register with the Department of Revenue and must file returns and remit payment within the amnesty period. The Department of Revenue can also offer this amnesty to taxpayers who enter approved repayment plans as long as the taxpayer remains in compliance with the terms of the plan throughout the duration of the repayment period.
This amnesty offer does not apply to any ROT remitted prior to the amnesty period, if the taxpayer in question is a party to criminal investigation or civil litigation regarding state tax levied by Illinois, or if the taxpayer is committing fraud or intentional misrepresentation. The amnesty filing period is August 1, 2026 through October 31, 2026.
Amnesty programs offer a lot of benefits to taxpayers who can take advantage of them, and Illinois’ program is no different as this program offers both the Simplified ROT rate and the waived interest charges. Often, states require taxpayers to ensure sales under amnesty programs are correctly allocated and reported to ensure all local taxes can be correctly assessed, which can be onerous. Taxpayers can take advantage of this single rate for previous sales into Illinois while they are working to ensure future reporting will be reported at the correct locations, as Illinois expects taxpayers with ongoing registrations will report on the ST-2 portion of their tax return. Also, most amnesty programs do not waive the whole interest calculation, opting instead for partial payments or a simplified interest rate; Illinois has opted to waive all interest to encourage participation. Remote retailers who qualify for this amnesty should consider taking advantage of the program, especially if they need to remain registered in the state of Illinois. (Illinois HB 2755, Signed by Governor JB Pritzker June 16, 2025)