Written By: Taylor Hankins
The Illinois Department of Revenue (IDOR) has announced a Remote Retailer Tax Amnesty 2026 program that will be conducted from August 1, 2026 through October 31, 2026. This program aims to encourage taxpayers who are remote retailers to remit all sales taxes owed from designated periods by waiving all penalties and interest.
Details of the Amnesty Program
- To participate, remote retailers must be registered with the IDOR and have an active MyTax Illinois account.
- Eligible taxpayers include remote retailers that sell tangible personal property (TPP) to customers in Illinois but have no physical presence in the state and meet the required tax remittance threshold:
- For any calendar quarter ending after January 1, 2021 and on or before December 31, 2025:
- $100,000 or more in annual gross receipts from the sales of TPP to purchasers in Illinois during the 4 preceding calendar quarters; or
- 200 or more separate transactions for the sale of TPP to purchasers in Illinois during the 4 preceding calendar quarters.
- For any calendar quarter starting on or after January 1, 2026:
- $100,000 or more in annual gross receipts from the sales of TPP to purchasers in Illinois during the 4 preceding calendar quarters.
- Liabilities for the following tax types incurred on sales made between January 1, 2021 and June 30, 2026 are eligible:
- Retailers’ Occupation Tax: includes items that must be titled or registered with a state agency
- All locally imposed retailers’ occupation taxes that are administered by IDOR including the Chicago Home Rule Municipal Soft Drink Retailers’ Occupation Tax
- Participants must electronically report and pay eligible tax liabilities using a simplified return and tax rate. This can be done by electronically submitting the Remote Retailer Amnesty Application during the amnesty program period using MyTax Illinois.
Potential Taxpayer Benefits
Participating in the tax amnesty program offers several benefits to taxpayers:
- Financial Relief: By remitting all owed taxes during the amnesty period, taxpayers can avoid paying penalties and interest, which can significantly reduce their financial burden.
- Compliance: Taking advantage of the amnesty programs allows taxpayers to become compliant with state tax laws, potentially avoiding future legal issues or audits.
- Peace of Mind: Settling outstanding tax liabilities can provide peace of mind, knowing that all dues are cleared and there are no lingering tax issues.
- Encouragement for Future Compliance: The amnesty program can encourage taxpayers to maintain compliance with tax obligations in the future, fostering a culture of timely tax payments.
Takeaway
Taxpayers who owe any of the eligible sales taxes for the specified periods should take advantage of the amnesty program. Remitting all taxes during the program period will help avoid penalties and interest, providing significant financial relief.
For more information on this program, you can visit the Illinois DOR website and their Informational Bulletin.
Please reach out to a member of your Porte Brown advisory team if you think you can benefit from this program or have any questions.
