The state of Illinois has enacted a new tax amnesty that takes effect between October 1, 2010, and November 8, 2010. The amnesty applies to any tax enforced by the Illinois Department of Revenue (e.g., income tax, sales tax, etc.), with the exception of motor fuel tax.

By paying all of the tax owed (for past periods) during the amnesty period, all penalty and interest would be abated. It also stops the Department of Revenue from seeking any other civil or criminal sanctions against the taxpayer for the period the amnesty is granted. The amnesty is not limited to unknown taxpayers; rather taxpayers who can take advantage of the amnesty include those who have been audited and assessed tax by the Department of Revenue, as long as they are not currently litigating the tax matter in state court or are under criminal investigation.

Failure to take advantage of the amnesty will result in the doubling of interest and penalty due. As a result, taxpayers who may have back-tax liabilities and who can take advantage of the amnesty may want to consider doing so.

For Further Information

If you would like more information on who can apply for the amnesty and how it works, please contact Stanley R. Kaminski, any other member of the State and Local Tax Practice Group, or the lawyer in the firm with whom you are regularly in contact.

As required by United States Treasury Regulations, you should be aware that this communication is not intended by the sender to be used, and it cannot be used, for the purpose of avoiding penalties under United States federal tax laws.

Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.