Chicago Tax Lawyers

For the second time in seven years, the state of Illinois is going to conduct a period of general tax amnesty. During that time, if you have past due taxes or unfiled tax returns and you turn in appropriate forms and pay your tax liability, the Illinois Department of Revenue (IDOR) will waive all penalties and interest.  If you fail to pay off your past due taxes by the end of the amnesty, all penalties and interest will double.

Here’s how it works.
The amnesty period beings October 1, 2010 and it ends November 8, 2010.  It applies to all taxes collected by the IDOR (income taxes, for example) resulting from a taxable period ending after June 30, 2002 and before July 1, 2009.

You are ineligible for the amnesty if you only owe interest and penalties or if you are currently involved in a court case or administrative hearing regarding taxes collected by the IDOR. If any legal proceedings conclude before the end of the amnesty period you may participate in the amnesty program.

Audits are a bit tricky. If you’re currently under tax audit and the audit will conclude before the end of the amnesty period, you must pay the full tax liability of the audit.  If your audit will not finish before November 8, you must estimate your tax liability (ideally with the assistance of an Illinois tax attorney) and pay that amount before the end of the amnesty period.  If eventual result of the audit is greater than your estimate, you will be charged for the additional tax plus double penalties and interest.

For more information
Everyone’s tax situation is different and the benefits and the risks of the tax amnesty vary from person to person.  For help navigating tax amnesty or for other tax help, contact: Tami Tolitano at 312 787 5533 orinfo@hwchicagolaw.com

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