Between October 1 and November 8 of this year the Illinois Department of Revenue (IDOR) will conduct a period of general tax amnesty. During this period, anyone with outstanding tax liabilities for taxable periods ending after June 1, 2002 and before July 1, 2009, who pay off their past due taxes will have all penalties and interest waived. Conversely, all penalties and interest will double after the tax amnesty if you fail to pay your past due taxes.
Getting the most out of the amnesty and avoiding any increased penalties will vary based on your particular tax situation. If you are currently being audited, for example, and that audit will complete before November 8, you must wait until the audit completes and then pay the resulting tax liability. If your audit will not be completed before the end of the amnesty period, things get a bit complicated. You must estimate your expected tax liability (ideally with the help of an Illinois tax attorney) and pay that amount before the end of the amnesty period. You’ll want to be careful with the estimate because if the audit comes up with a higher tax liability, you will be charged for the difference plus double penalties and interest.
For help navigating the tax amnesty, contact the Chicago tax attorneys of Horowitz and Weinstein.