Publications > C & A News Alert - August (no. 2) 2010
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Special Alert: New 2010 Illinois Tax Amnesty Program
by Mark D. Anderson
manderson@comananderson.com
direct dial: (630) 946-1678
650 Warrenville Rd.
Suite 500
Lisle, IL 60532
phone (630) 428-2660
fax (630) 428-2549
On August 16, 2010, Governor Pat Quinn signed Public Act 96-1435 which has created a new "amnesty program" for past due Illinois tax payments – and creates an opportunity for a segment of Illinois taxpayers. The program is designed to raise an estimated $250 million in additional tax collections without the State incurring substantial administrative costs. This can be a "win-win": the State can benefit from accelerating the receipt of revenues, and delinquent taxpayers can be relieved of some burdensome interest and penalties.
Taxes eligible for the amnesty program include taxes for periods ending after June 30, 2002 and before July 1, 2009. If delinquent taxes are paid - in full - for these time periods, with payments being made between October 1, 2010 and November 8, 2010, the State will not seek any interest or penalties, and will not seek any additional civil or criminal prosecution.
Under the new legislation, taxpayers will not be eligible if they are currently a party to any pending criminal investigation, or a party to any pending civil or criminal litigation with the State regarding the delinquent taxes in question.
Caution: to strengthen the "incentive" to participate, if the delinquent taxpayer fails to voluntarily make all payments due during the relevant time period (i.e., June 30, 2002 to July 1, 2009), then any interest and penalties for taxes due for this 7 year amnesty period will be automatically doubled.
This is a good time for taxpayers to take stock of any past due tax liabilities -- not only for Illinois income taxes, but for any other tax administered or collected by the Illinois Department of Revenue. The doubling of the interest and penalties which will apply to non-participants in the amnesty program mandates a serious look at this. Remember that the window for taking advantage of this program is very small – just 39 days.
If you would like to consult with us to review your exposure, or to assist you in participating in this program, please contact Mark Anderson or any other member of the firm.
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