Whether it is an Illinois sales and use tax assessment that you have been avoiding, an Illinois sales and use tax audit that you have recently completed, or are in collections with the Illinois Department of Revenue, Illinois sales and use tax debt can creep up on businesses and individuals alike. Not only can this feeling be overwhelming, but it is also a severe financial constraint, as the state will likely impose interest, penalties, and years of unresolved Illinois sales and use tax problems.
Here is the good news: Illinois is rolling out a Tax Delinquency Amnesty Program that may just be your golden ticket to square your Illinois sales and use tax debt, while having penalties and interest abated. This is a unique opportunity, specifically with the opportunity of having interest abated.
Illinois Tax Amnesty: What is the Rare Sales Tax Opportunity?
From October 1 through November 17, 2025, Illinois taxpayers have a limited window to square up past tax liabilities and skip the interest and penalty baggage. If you pay eligible debts in full during this time, the Illinois Department of Revenue will abate any interest and penalties and will not pursue civil or criminal action for those tax years. This program stems from recently proposed updates to the Illinois Administrative Code, Part 520, the Amnesty Program regulations, published August 22, 2025.
Eligibility and Timing – Critical for Illinois Taxpayers
The amnesty applies to any Illinois sales or use tax liability for periods ending after June 30, 2018, and prior to July 1, 2024. Congressional authority for the amnesty comes from the amended Illinois Tax Delinquency Amnesty Act, per the proposed regulation language published on August 22, 2025, which modifies sections 101 and 105 of Title 86, Part 520.
Eligible Taxpayers
You can take advantage of the program if:
- You are an individual, business, trust, or estate with Illinois tax liabilities.
- You owe taxes for any period ending after June 30, 2018, and before July 1, 2024.
- Your liability stems from assessed tax, audit findings, amended returns, or unfitted returns you now submit.
- You are in audit, or involved in protest or tribunal processes, and agree to final resolution and full payment by the deadline.
- You wish to clear specific years or tax types—full payment for that period/type is required.
- You have unfiled returns for eligible years and are ready to file and pay now.
Ineligible Taxpayers
You are not eligible if:
- You’re involved in ongoing criminal proceedings related to the applicable tax periods.
- Your liability is under a final court judgment still in effect.
- You’re under active civil litigation over the liability, unless the case is resolved or dismissed in the Department’s favor before November 17, 2025.
- You’ve already paid the liability in full (no retroactive amnesty).
- The debt is related to federal taxes or other non–Illinois liabilities.
What if I am in Collections? Why Now – What’s the Opportunity?
Good news: being in collections doesn’t automatically disqualify you—as long as your liability falls within the eligible window and you pay it in full during the amnesty period. Once paid, the Department will abate interest and penalties, and any liens or enforcement action tied to that debt should be released or resolved after payment is processed.
The window is tight, and grace periods will not be granted past November 17, 2025. This will not only stop the growth and accruing of penalties and interest, but the penalties and interest will be eliminated in their entirety.
Three Steps to Make It Happen
- Map Your Liabilities: List what you owe and when. Use returns—original or amended—to estimate audit amounts and confirm what’s assessed.
- Pay Full Amounts Fast: Ensure every eligible piece of tax is paid in full between October 1 and November 17, 2025. No partial payments are allowed; even one missed liability voids the amnesty for that item.
- Use the Right Method: Payments can be made via cash, check, guaranteed remittance, ACH debit, or (for individuals) credit card (fees apply). Overpayments may be offset—but document them clearly.
Final Word: Call Sales Tax Helper to Resolve Your Illinois Sales Tax Debt
Tax debts don’t vanish – they compound. This Amnesty Program offers a rare, high-impact way to wipe away penalties and interest and reset your standing with the Illinois Department of Revenue. It’s a cleanup opportunity you don’t want to miss.
With decades of specialized expertise, Sales Tax Helper LLC helps businesses overcome their Illinois sales tax challenges effectively and affordably.
Reach out through our online contact form to learn more about our services and the Illinois Tax Amnesty Program.