Illinois

Senate Bill 689 (Public Act 101-9) signed by the governor and effective June 5, 2019 contained various changes to Illinois state and local tax laws, including the following:

Amnesty

Both the Department of Revenue (DOR) and Office of the Secretary of State (SOS) will conduct a tax amnesty program that will run from October 1, 2019 to November 15, 2019 that will waive certain interest and penalties on unpaid tax liabilities.

For DOR, amnesty applies to all taxes administered or collected by the Department (Income Tax, Retailers Occupation Tax, Use Tax, Service Occupation Tax, Service Use Tax, certain municipal transaction taxes, and Telecommunication Excise Tax). Amnesty applies to any tax period ending after June 30, 2011 and before July 1, 2018.

For the SOS, the Illinois General Assembly has amended the Franchise Tax and License Fee Amnesty Act of 2007 and amnesty applies to any corporate franchise tax liabilities for any tax period ending after March 15, 2008 and on or before June 15, 2019.

Corporate Franchise Tax Phase-Out

Section 30-5 of the bill amended Sections 15.35 and 15.65 of the Business Corporation Act to provide for a phase-out of the franchise tax imposed on domestic and foreign corporations doing business in Illinois.  The phase-out occurs in steps ($30.00 in 2020, $1,000.00 in 2021, $10,000.00 in 2022, $100,000.00 in 2023), and no payment of franchise tax will be due on or after January 1, 2024.

The bill text can be accessed here.

Illinois – Franchise Tax Amnesty October 1, 2019 to November 15, 2019