The Illinois Department of Revenue has issued an informational bulletin providing detailed information on tax amnesty which is available to all taxpayers with outstanding Illinois tax debt pursuant to the 2025 Illinois Tax Delinquency Amnesty Act. (Illinois Dept. of Rev. Info. Bulletin No. FY 2026-01, 08/01/2025.)
Eligible liabilities
Eligible liabilities include taxes due from periods ending after June 30, 2018, and prior to July 1, 2024. Taxpayers with an existing tax liability should make full payment of eligible taxes from October 1, 2025, through November 17, 2025. Taxpayers must file an original return for non-filed periods or file an amended return to make corrections.
Amnesty program benefit
Taxpayers that pay eligible liabilities, in full, between October 1, 2025, through November 17, will have penalties and interest waived. Taxpayers who only owe penalties and interest do not qualify for the amnesty program.
Exclusions
The following items are not waived by amnesty: lien filing and lien release fees; books and records penalties; bad check penalties; collection agency service fees; and various penalty and interest amounts.
Additionally, the following do not qualify for tax amnesty:
- Taxes not collected by the Department, such as property, estate, franchise, insurance taxes, and local taxes paid directly to the local government.
- Any balance due on returns for periods ending on or before June 30, 2018, or after July 1, 2024.
- Motor Fuel Use Tax (including International Fuel Tax Agreement liabilities).
- Any liability that is not tax, including licensing fees, tire user fees, motor fuel violations, permits, and some surcharges.
Collection agency
Taxpayers whose accounts have been referred to a private collection agency should not make their payments directly to the Department. Those payments must be made through the private collection agency. Taxpayers should contact the collection agency for the total amount of eligible amnesty debt or follow directions received on the amnesty letter sent by the private collection agency.
Payments
Taxpayers should pay their debt through electronic payments, credit card or check or money order. Cash is accepted only at the Department’s Springfield and Chicago offices. Credit card payments are only available for individual income tax payments. Taxpayers should make separate payments for each tax liability being paid. If taxpayers chose to make one combined payment, they must clearly identify each eligible tax liability being paid by tax type, tax period, and amount. Taxpayers who do not specify where the payment should be directed will be subject to the Department’s usual regulations and procedures, and the payment may be applied to periods that are not eligible for amnesty.
Audits and pending cases
If an audit was recently completed or will be completed prior to the closure of the amnesty program on November 17, 2025, taxpayers must pay the full amount of the audit tax liability during the amnesty period to qualify. Taxpayers with a case pending with the Department’s Board of Appeals may still participate in the program for eligible liabilities. Taxpayers with a case pending with the Department’s Administrative Hearings or the Independent Tax Tribunal may also participate for eligible liabilities; however, taxpayers will need to withdraw their protest and pay the tax in full to qualify for amnesty. Taxpayers protected by the Federal Bankruptcy Court may require court approval to participate, and those taxpayers should contact the Department and provide the bankruptcy court and case number.
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