From October 1 through November 17, 2025, Illinois will offer a limited-time general tax amnesty program for qualifying taxpayers. There’s a separate franchise tax amnesty program that will be administered during the same period. In addition to the time limit, there are other limitations on who qualifies for the programs. 

Illinois Franchise Tax Amnesty Program 

The Franchise Tax Amnesty Program applies to taxpayers who owe franchise taxes or license fees under Article XV of the Business Corporation Act of 1983 for tax periods ending between June 30, 2019, and June 30, 2025. The Illinois Secretary of State will waive any applicable penalties and interest and won’t pursue civil or criminal prosecution for the amnesty time period for those who participate in the program and pay all due franchise tax liabilities.  

Who’s Eligible for the Illinois Franchise Tax Amnesty Program 

• Domestic (Illinois) corporations 

• Foreign corporations authorized to transact business in Illinois 

• Foreign corporations that have been transacting business in the state without authority 

Excluded from Franchise Tax Amnesty 

Excluded taxpayers include those involved in: 

• Civil, administrative or criminal investigations, 

• Pending litigation in Illinois courts for nonpayment, delinquency or fraud related to franchise tax or license fees.  

Note: “Civil, administrative or criminal investigation” also includes instances such as the Secretary’s Department of Business Services sending interrogatories to a taxpayer. Eligible taxpayers can find the franchise tax amnesty petition, along with the 2025 Amnesty Information Sheet, on the Secretary’s website. It must be completed in addition to any other forms normally required by the Secretary. Petitions can’t be executed before October 1, 2025, and petitions with dates that fall outside of the October 1, 2025, to November 17, 2025, range will be rejected.  

You must submit amnesty related documents by November 17, 2025. You’ll have a chance to correct your documents and resubmit them if they are rejected, but you’ll only have 30 days from the rejection date to do so. Only one 30-day extension will be allowed.  

Illinois Tax Amnesty Program 

From October 1 through November 17, 2025, the Illinois Department of Revenue will offer a tax amnesty program that waives interest and penalties for qualifying taxpayers for eligible taxes.  Amnesty applies to taxes administered by the Department that were due after June 30, 2018, and before July 1, 2024. All interest and penalties that would otherwise be due will be waived. Furthermore, the DOR will not seek civil or criminal prosecutions of taxpayers who take advantage and participate in the amnesty. 

Eligible taxes include: 

• Income tax 

• Sales/use tax (state and local) 

• Telecommunications taxes and infrastructure maintenance fee 

• Other taxes administered by the Department of Revenue 

Excluded taxes are: 

• Franchise tax (covered by its own program) 

• Property tax 

• Estate tax 

• Motor fuel use tax 

• Insurance tax 

• Local taxes that were paid directly to local governments 

• Non-tax liabilities (such as licensing fees, tire user fees, violations, permits, etc.) 

To qualify for amnesty protection from civil or criminal prosecution, taxpayers must:  

• Pay all taxes owed in full 

• File the required returns with supporting documents during the amnesty window 

• Ensure all payments and filings are submitted by November 17, 2025 

Taxpayers under active criminal investigation or involved in any pending civil or criminal litigation related to any Illinois tax are not eligible. Note: taxpayers who owe only penalties and interest do not qualify for amnesty.  

Guidance on Applying for Tax Amnesty 

Participating taxpayers aren’t precluded from filing a refund claim for overpayment of tax on issues unrelated to amnesty or for an overpayment of tax if the tax period’s statute of limitation is still open or the refund claim is filed within one year of making the amnesty payment. An amnesty payment for a non-final estimated federal change pursuant to 35 ILCS 5/506(b) can also act as a refund claim as long as certain language specified by the Illinois Department of Revenue in its amnesty regulation, is included in the amended return reporting the amnesty payment.  

Key Considerations for Tax Amnesty Program: 

For more information on the proposed rules governing the amnesty program, or to learn more about the procedures or clarify issues such as refund provisions and provisions concerning payments made while under audit, view this guidance from the Illinois Department of Revenue or the Tax Information Bulletin FY 2026-01, 2025 Illinois Tax Delinquency Amnesty Act. 

Eligibility & Participation 

• Under audit? 
  Taxpayers under a federal or state audit can participate regardless of whether the Department of Revenue has assessed the tax, as long as the taxes covered by amnesty haven’t been paid. 

• Pending cases before the Department of Revenue or Board of Appeals: 
  Participation is allowed for eligible liabilities. 

• Pending cases in court: 
  Taxpayers with pending litigation in Illinois courts are not eligible unless the case is dismissed before the amnesty period ends. 

• Other pending matters: 
  Taxpayers with pending matters before the Department of Revenue’s Office of Administrative Hearings or the Illinois Independent Tax Tribunal may participate if they stipulate to a judgment in favor of the Department and pay the liability by November 17, 2025. 

Payment Requirements 

• “All taxes due” means exactly that: 
  Full payment of all Illinois tax liabilities for the relevant period and tax type is required, whether the taxpayer or Department know of the liability. 

• Refund claims: 
  Participation does not prevent refund claims for overpayment of tax on issues unrelated to amnesty. Taxpayers can still file for refunds for overpayment of tax if the statute of limitations is open or within one year of the amnesty payment. Amnesty payments for a non-final, estimated federal charge (pursuant to 35 ILCS 5/506)b))can also count as refund claims if proper language specified in the Department’s amnesty regulation is included in the amended return that reports the amnesty payment. 

Subsequent federal changes or loss carrybacks: Refund claims based on these are allowed without affecting amnesty eligibility. 

Special Note for Remote Sellers 

Eligible remote sellers can participate in the general tax amnesty program. A separate amnesty program specific to remote retailers will run August 1 to October 31, 2026, covering state and local retailers’ occupation taxes (ROTs) for transactions from January 1, 2021, through June 30, 2026. Payments made at the simplified ROT rate satisfy the liability for these eligible transactions and eliminate any additional ROT owed.  

Act Now 

The window to participate in either the franchise or general tax amnesty programs is limited: October 1 through November 17, 2025. Eligible taxpayers are strongly encouraged to take advantage of amnesty to have penalties and interest waived and gain protection from civil or criminal prosecution for the applicable tax period.  

Anders State and Local Tax advisors monitor state and local legislation to keep clients informed and confident in their tax decisions Our advisors can help determine eligibility, guide you through the process and minimize your tax burden. Contact us today to learn who we can help you take advantage of Illinois’ tax amnesty programs.