The Illinois Department of Revenue is offering taxpayers a limited-time opportunity to pay outstanding eligible tax liabilities and have penalties and interest forgiven. This opportunity is part of the Illinois Tax Delinquency Amnesty Act and is described in the FY 2026-01 Bulletin, available at tax.illinois.gov.

Key Details

  • Amnesty Period: October 1 through November 17, 2025.
  • Eligible Tax Periods: Returns for tax periods beginning July 1, 2018, through June 30, 2024.
  • Eligible Taxes: Illinois income tax, sales tax, and most other taxes administered by the Illinois Department of Revenue (excluding local property, franchise, and insurance taxes).
  • Relief Offered: Full waiver of penalties and interest when all outstanding taxes are paid in full during the amnesty period.

To qualify, taxpayers must file any missing or amended returns and pay the full balance due by November 17, 2025. Payments can be made online through MyTax Illinois, by mail, or in person at a Department of Revenue office.

Who Qualifies

Both individuals and business entities, including corporations, partnerships, limited liability companies, trusts, and estates, may participate. The program applies to:

  • Previously unfiled returns.
  • Corrections to previously filed but inaccurate returns.
  • Returns currently or previously under audit.
  • Cases pending before the Department of Revenue Board of Appeals, Administrative Hearings, or the Independent Tax Tribunal.

If a taxpayer does not have sufficient funds to cover all unfiled or amended returns, they can still file for part of the period and receive penalty and interest relief for those specific filings.

A separate amnesty program for remote retailers, covering sales tax liabilities, will be available from August 1 through October 31, 2026.

Why It Matters

This program provides an opportunity for Illinois taxpayers to catch up on unpaid taxes, correct errors from prior years, or resolve issues related to audits or appeals. Acting within the amnesty window can help reduce the financial burden of penalties and interest that would otherwise apply.

If you think you or your business might qualify, contact your Kemper CPA Group advisor.