Illinois Enacts Amnesty Program! (Carrot and Stick)
Illinois has enacted an Amnesty program set to begin on October 1, 2010 and run through November 8, 2010.
The amnesty program covers all taxes due from a taxpayer to the State of Illinois for any taxable period ending after June 30, 2002 and prior to July 1, 2009.
Benefits of Amnesty Program ("the Carrot")
The Department will abate and not seek to collect any interest or penalties that may be applicable, and the Department will not seek civil or criminal prosecution for any taxpayer for the period of time for which amnesty has been granted to the taxpayer.
Requirements and Qualifications
Failure to pay all taxes due to the State for a taxable period will invalidate any amnesty granted under this Act. Amnesty will be granted only if all amnesty conditions are satisfied by the taxpayer.Amnesty will not be granted to 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 this State for nonpayment, delinquency, or fraud in relation to any State tax imposed by any law of the State of Illinois.
Participation in an amnesty program will not preclude a taxpayer from claiming a refund for an overpayment of tax on an issue unrelated to the issues for which the taxpayer claimed amnesty or for an overpayment of tax by taxpayers estimating a non-final liability for the amnesty program pursuant to Section 506(b) of the Illinois Income Tax Act (35 ILCS 5/506(b)).
200% Penalty for NOT Participating ("the stick")
If a taxpayer has a tax liability for the taxable period ending after June 30, 2002 and prior to July 1, 2009 that is eligible for amnesty, and the taxpayer fails to satisfy the tax liability during the amnesty period, then the interest charged by the Department will be imposed in an amount that is 200% of the amount that would otherwise be imposed.Need Help?
Please contact me at email@example.com for assistance in determining if you qualify for the program, and/or guidance in taking advantage of the program.
Brian Strahle is the owner of LEVERAGE SALT, LLC where he provides state and local tax technical services to accounting firms, law firms and tax research organizations across the United States. He also writes a weekly column in Tax Analysts State Tax Notes entitled, "The SALT Effect." For more info, visit his website: www.leveragestateandlocaltax.com
You can reach Brian at firstname.lastname@example.org.
Because state and local taxes are deceptively simple and endlessly complicated.