86 Ill. Adm. Code 1310.131.185

Remote Retailer Amnesty Program

Last amended: 2026Year: 2026Length: 6,012 wordsOfficial source
TITLE 86: REVENUE CHAPTER I: DEPARTMENT OF REVENUE PART 131 LEVELING THE PLAYING FIELD FOR ILLINOIS RETAIL ACT SECTION 131.185 REMOTE RETAILER AMNESTY PROGRAM Section 131.185  Remote Retailer Amnesty Program a)         Pursuant to the Section 2-13 of the Retailers' Occupation Tax Act ("ROTA"), as created by Public Act 104-0006, the Department will conduct a remote retailer amnesty program ("the Program") for remote retailers that owe State or local retailers' occupation taxes on eligible transactions. 1)         The Program will apply to payments of contested and uncontested State and local retailers' occupation tax liabilities on eligible transactions received by the Department or payment plans entered into with the Department from August 1, 2026, through October 31, 2026. Amnesty is only applicable on State and local retailers' occupation tax liability owed by remote retailers (see 86 Ill. Adm. Code 131.107(c)(1)). Amnesty is not available for any other taxes that may be owed by a remote retailer as set out in 131.107(c)(2), excise taxes, or taxes not administered by the Department. Amnesty is not available to servicepersons or Illinois retailers with any type of physical presence in this State. 2)         Remote retailers participating in the Program must report and remit, at a simplified retailers' occupation tax rate, State and local retailers' occupation taxes due on eligible transactions. The payment shall be made by the remote retailer during the remote retailer amnesty period and shall be in lieu of reporting and remitting State and local retailers' occupation taxes at the rate otherwise provided by law. [35 ILCS 120/2-13(b)] 3)         If a taxpayer participates in the Program and complies with all the requirements of this Section, the payment of the tax at the simplified retailers' occupation tax rate relieves the remote retailer of any additional State or local retailers' occupation taxes with respect to the eligible transaction. Further, the Department shall abate and not seek to collect any interest or penalties that may be applicable with respect to those eligible transactions, and the Department shall not seek civil or criminal prosecution of the remote retailer for the period of time for which amnesty has been granted to the retailer. [35 ILCS 120/2-13(b)] 4) Remote retailers participating in the Program remain subject to audit by the Department as provided in the ROTA . Remote retailers participating in the Program shall not be subject to audit or review by any unit of local government under the Local Government Revenue Recapture Act. [35 ILCS 120/2-13(f)] b) Definitions and special provisions. For purposes of this Section: "Eligibility period" means the period from January 1, 2021, through June 30, 2026. [35 ILCS 120/2-13(a)] "Eligible Liability" means the total amount of liability arising under the Program calculated from the total gross receipts arising from eligible transactions multiplied by the applicable simplified retailers' occupation tax rate. "Eligible Transaction" means the sale of tangible personal property by a remote retailer to an Illinois customer that occurs during the eligibility period and that requires the remote retailer to ship or otherwise deliver the tangible personal property to an address in the State. "Established Liability" means an eligible liability that has been assessed or become final prior to the beginning of the Program period; any amount paid under the Protest Act prior to the beginning of the remote retailer amnesty period; or any amount of tax shown on a notice of assessment or notice of tax liability that was issued prior to the beginning of the remote retailer amnesty period or on an amended return presented by the Department to the taxpayer prior to the beginning of the remote retailer amnesty period after the conclusion of an audit (including any proceedings before the Informal Conference Board). "Local Retailers' Occupation Tax" means a retailers' occupation tax imposed by a municipality, county, or other unit of local government and administered by the Department. "Notice and Demand" means any demand for payment issued by the Department that is eligible for the 30-day interest-free grace period under Section 3-2(c-5) of the Uniform Penalty and Interest Act (UPIA) [35 ILCS 735]. "Program" means the Remote Retailer Amnesty Program established under this Section. "Protest Act" means the State Officers and Employees Money Disposition Act [30 ILCS 230]. "Remote Retailer" means a remote retailer, as defined in Section 1 of the ROTA , who has met a tax remittance threshold under subsection (b) of Section 2 of the ROTA for all or part of the eligibility period and who is participating in the Program established under this Section . "Remote Retailer Amnesty Period" means the period from August 1, 2026, through October 31, 2026, during which the Department will accept returns and payment of and enter into payment plans for State and local retailers' occupation taxes at the simplified retailers' occupation tax rate for eligible transactions that occur during the eligibility period. "Simplified Retailers' Occupation Tax Rate" means the combined State and average local retailers' occupation tax rate imposed on remote retailers participating in the Program. The simplified retailers' occupation tax rate shall be (i) 9% of the gross receipts from sales of tangible personal property that are subject to the 6.25% State rate of tax imposed by Section 2-10 of the ROTA or (ii) 1.75% of the gross receipts from sales of (A) tangible personal property that is subject to the 1% State rate of tax imposed by Section 2-10 of the ROTA and (B) food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, and food that has been prepared for immediate consumption), regardless of the applicable rate of tax. "Taxable Period" means the period of time for which any tax is imposed by and owed to the State of Illinois. "Taxing Jurisdiction" means a municipality, county, or other unit of local government that imposes a local retailers' occupation tax. [35 ILCS 120/2-13(a)] c)         Simplified Retailers' Occupation Tax Rate 1)         The simplified retailers' occupation tax rate of 9% for general merchandise or 1.75% for sales normally subject to the 1% State rate of tax or food for human consumption to be consumed off the premises where it is sold is offered as a way to bring remote retailers into compliance with the sales tax laws of Illinois who may not have the records necessary to determine the location of their selling activities in this State. 2)         Participating remote retailers must remit all tax on eligible transactions at the simplified retailers' occupation tax rate, unless one of two exceptions exists: A)        Tax was previously collected on the eligible transaction at a rate greater than the simplified retailers' occupation tax rate. In this situation, tax that was collected at the greater rate must be remitted. [35 ILCS 120/2-13(c)(3)] B)        The remote retailer can produce a valid exemption number or certificate, resale certificate, or direct pay permit issued by the Department covering the eligible transaction. In this situation, the remote retailer must retain all exemption numbers or certificates, resale certificates, or direct pay permits in its books and records (see 86 Ill. Adm. Code 130.810). 3)         Except as otherwise provided in subsection (c)(2)(A) of this Section, no remote retailer shall be required to remit the tax at a rate greater than 9% or 1.75%, as applicable, regardless of the combined actual tax rates that may otherwise be applicable on an eligible transaction. Additionally, no gross receipts for which State and local retailers' occupation tax is remitted at the simplified retailers' occupation tax rate shall be subject to any additional retailers' occupation tax from any taxing jurisdiction imposing a retailers' occupation tax with respect to the sale of the property, regardless of the actual tax rate that might have otherwise been applicable on an eligible transaction. [35 ILCS 120/2-13(d)] 4)         The simplified retailers' occupation tax rate is only available for use under the Program and will not be accepted on sales tax returns filed outside of the remote retailer amnesty period. d)         Department Requirements. The Department has no duty to notify taxpayers of liabilities that may make them eligible for participation in the Program. Failure of the Department to notify a taxpayer of the existence or correct amount of liability eligible for remote retailer amnesty shall not preclude the taxpayer from participating in the Program. The Department shall have exclusive responsibility for reviewing and accepting applications for participation and for the administration, return processing, and review of the eligibility of remote retailers participating in the Program. [35 ILCS 120/2-13(h)] e)         Requirements for Participation in the Remote Retailer Amnesty Program 1) The remote retailer must make full payment of all State and local retailers' occupation taxes due with respect to the remote retailer's eligible transactions, using the simplified retailers' occupation tax rate, during the remote retailer amnesty period for amnesty to be granted, unless the remote retailer enters into an approved repayment plan with the Department during the remote retailer amnesty period. In that case, amnesty shall be granted upon successful completion of the repayment plan as long as the taxpayer remains in compliance with the terms of the payment plan throughout its duration, including remaining in compliance with all other tax obligations owed to the Department. [35 ILCS 120/2-13(b)] 2)         If a taxpayer has previously paid State and local retailers' occupation tax using the appropriate location and tax rate or only incurred State and local retailers' occupation tax for a portion of the eligibility period, a taxpayer may participate in the Program selectively, provided that the taxpayer completely satisfies its eligible liability for each tax period for which amnesty is sought. Thus, a taxpayer may participate in the Program with respect to particular tax periods but not others (e.g., July 2021 to December 2021 Retailers' Occupation Tax but not January 2022 to June 2022 Retailers' Occupation Tax). 3) Amnesty shall be granted only if all amnesty conditions as set out in this Section are satisfied by the taxpayer. The amnesty provided by this Section shall be granted to any remote retailer who, during the remote retailer amnesty period, files all returns and remits all State and local retailers' occupation tax on all eligible transactions using the simplified retailers' occupation tax rate or otherwise applicable State and local retailers' occupation tax rates due for all of the remote retailer's eligible transactions. [35 ILCS 120/2-13(c)] Additionally, the following requirements must be met for amnesty to be granted under the Program: A) remote retailers must be registered with the Department as set out in Section 2a of the ROTA, and remote retailers registering for the first time as part of the Program must register electronically in the manner prescribed by the Department; B) returns filed under the Program shall be filed electronically in the manner prescribed by the Department in Section 3 of the ROTA and shall be filed only during the remote retailer amnesty period; C)        a remote retailer shall remit the tax at the simplified retailers' occupation tax rate or, if the tax was collected, in the amount of the tax collected, whichever is greater; the required reporting for each return period from the remote retailer shall include only statewide totals of the retailers' occupation taxes remitted at the simplified retailers' occupation tax rate and shall not require information related to the location of purchasers or amount of sales into a specific taxing jurisdiction; D) amnesty is not available for any retailers' occupation tax remitted to the Department prior to the remote retailer amnesty program period by the remote retailer; E)        a remote retailer may not be a party to any criminal investigation or to any civil or criminal litigation that is pending in any circuit court, any appellate court, or the Supreme Court of this State for nonpayment, delinquency, or fraud in relation to any State tax imposed by any law of the State of Illinois; F)         a remote retailer may not commit fraud or intentional misrepresentation of a material fact in any document filed under the Remote Retailer Amnesty Program; and G) amnesty is applicable only to retailers' occupation taxes due from the remote retailer in its capacity as a remote retailer and not to any other taxes that may be owed by the remote retailer pursuant to another tax Act. [35 ILCS 120/2-13(c)] 4)         Except as otherwise expressly provided in this Section: A)        In the case of an established liability that has been assessed or has otherwise become subject to collection action by the Department, the taxpayer participates in the Program by calculating and paying the eligible liability, as defined in this Section, or, if the tax was collected, paying the amount of the tax collected, whichever is greater, during the remote retailer amnesty period. However, amnesty is not available for any retailers' occupation tax remitted to the Department prior to the remote retailer amnesty period by the remote retailer. B)        In the case of an eligible liability where an established liability has not been assessed or otherwise become subject to collection action by the Department, the taxpayer participates in the Program by filing the appropriate return or amended tax return to report the eligible liability and making payment of the eligible liability, or, if the tax was collected, in the amount of the tax collected, whichever is greater, to the Department during the remote retailer amnesty period . Unless a special form or schedule is provided by the Department for filing an original or amended return to report an eligible liability, the taxpayer must use the form ordinarily prescribed by the Department for that return or amended return. 5)         Participating remote retailers must make payments toward each liability period. Participating remote retailers may make one payment covering multiple periods if all periods for which payment is made are identified in the application. Any payment that is not expressly designated by the taxpayer as applicable to an identified liability period or range of periods will be applied against liabilities of the taxpayer in accordance with 86 Ill. Adm. Code 700.500, which may result in failure of the taxpayer to pay all eligible liabilities it intended to pay. 6) Remote retailers shall maintain records of all eligible transactions, including copies of invoices showing the purchaser, the purchase amount, the taxes collected, and the retailers' occupation tax remitted. Records must be kept documenting all tangible personal property sold for which the 1.75% simplified retailers' occupation tax rate is used to verify that the tangible personal property qualifies for the 1% State tax rate imposed under Section 2-10 of the ROTA . Those records shall be made available for review and inspection upon request by the Department . [35 ILCS 120/2-13(f)] 7) Failure to pay all taxes due using the simplified retailers' occupation tax rate for the eligible period, unless tax has previously been remitted, prior to the remote retailer amnesty period, using the applicable State and local retailers' occupation tax rates on periods for which the remote retailer is not pursuing amnesty, shall invalidate any amnesty granted under the ROTA, and all retailers' occupation tax due for the eligible period shall be due at the applicable State and local rate for the particular selling location, and all applicable penalties and interest will be assessed thereon.  [35 ILCS 120/2-13(b)] f)          Form of Payment. 1)         Payments must be made electronically through the participant's MyTax account. 2)         Payments that are returned or not honored by a financial institution do not qualify as payments during the remote retailer amnesty period. 3)         Payment Plans. If a remote retailer has eligible liabilities it cannot pay in full because of a financial hardship, the remote retailer may request a payment installment plan. A payment installment plan is an agreement between a taxpayer and the Department to pay tax delinquencies using a monthly payment plan. To be approved for a payment plan, a remote retailer must have filed all tax returns for the applicable eligibility period. All eligible liabilities will be part of the same payment plan. A)        Terms of payment plans. A remote retailer may enter into a pre-approved payment plan with the Department simultaneously with filing returns for eligible amnesty periods. This pre-approved payment plan requires a good faith down payment to be made during the Program period. The down payment must be made on or before October 31, 2026, the last day of amnesty. Failure to apply for a pay plan and make a good faith down payment prior to the end of the Program period will result in denial of amnesty. The remainder of the balance will be payable in equal monthly installments for up to 24 consecutive months with the first payment due 30 days from the end of the Program (December 1, 2026), and all subsequent payments due on the 1st of each month until the balance plus accruing interest are paid in full. No financial statements are required for the pre-approved payment plan. B)        Interest will accrue on the eligible liability balance during the duration of the payment plan. Accrual of interest will begin immediately following the end of the Program period (November 1, 2026). C)        All payments made pursuant to a Department approved payment plan must be made by ACH debit. D)        Application for payment plans under the Program are to be completed through the participant's MyTax account and in a form prescribed by the Department. All applications must provide a bank routing number, account number, monthly payment amount, and authorization to electronically withdraw said funds. 4)         Other forms of payment: A)        The Department will treat the following items as payments qualifying under the Program: i)          Offset of a verified overpayment or credit memorandum relating to sales and excise taxes, to the extent available to the taxpayer prior to the end of the remote retailer amnesty period ; or ii)         For a taxpayer under audit (including matters pending in the Fast Track Resolution Program or before the Informal Conference Board), an overpayment tentatively determined by the Department for a tax period in the audit may be offset against an eligible liability for another tax period in the same audit. B)        The return, amended return or other allowable amnesty filing reporting the eligible liability to be offset must identify each verified overpayment, credit memorandum, or overpayment tentatively determined by the Department in an audit to be used as a Program payment by tax type, period, and amount. g)         Civil Cases Pending in State Courts. Section 2-13(c)(5) of the ROTA provides that amnesty shall not be granted to taxpayers who are a party to any civil litigation that is pending in any circuit court, any appellate court, or the Supreme Court of this State for nonpayment, delinquency, or fraud in relation to any State tax imposed by any law of the State of Illinois. [35 ILCS 120/2-13(c)(5)] 1)         A payment made under the Protest Act initiates a civil suit in circuit court.  Accordingly, payment of a liability under the Protest Act disqualifies the taxpayer from participating in the Program with respect to that liability, even if the liability would otherwise be an eligible liability and the payment is made during the remote retailer amnesty period. 2)         A taxpayer that is ineligible for the Program under this Section becomes eligible if the taxpayer ceases to be a party to a civil action by dismissing the action prior to the end of the remote retailer amnesty period. The action is dismissed on or before the October 31, 2026, deadline if the taxpayer has executed an agreed order stipulating to judgment in favor of the Department, and during the remote retailer amnesty period has either paid the eligible liability that is the subject of the action, or, in a Protest Act case, agreed to a dissolution of the injunction and a court order that directs the amount of the eligible liability to be released to the Department. A taxpayer participating in the Program under this subsection (g)(2) need not file a return or amended return under subsection (e) with respect to the liability that is the subject of the litigation, but must specify in its motion to dismiss the action that it is doing so in order to participate in the Program and its payment of the eligible liability must be accompanied by a statement that the payment is being made under the Program and must identify the eligible liability being paid and its corresponding liability periods. 3)         Bankruptcy proceedings take place in federal courts, and a taxpayer in bankruptcy may be eligible to participate in the Program with approval of the bankruptcy court. 4)         A taxpayer that is a party to civil litigation in an Illinois court regarding a tax liability arising under another tax act is eligible to participate in the Program with respect to a liability arising under the Retailers' Occupation Tax Act. h)         Matters Pending in the Department's Office of Administrative Hearings or at the Illinois Independent Tax Tribunal. Matters pending in the Department's Office of Administrative Hearings or at the Illinois Independent Tax Tribunal are not pending in any circuit court, any appellate court, or the Supreme Court of this State .  [35 ILCS 120/2-13(c)(5)] Therefore, a tax liability that is being contested before one of the Department's or Tribunal's Administrative Law Judges is eligible for the Program. 1)         A taxpayer who wishes to participate in the Program with respect to an established liability at issue in a matter pending in the Office of Administrative Hearings or Illinois Independent Tax Tribunal must stipulate to judgment in favor of the Department with respect to that liability on or before October 31, 2026, and pay or enter into a repayment plan with the Department with respect to that liability during the remote retailer amnesty period. 2)         A taxpayer participating in the Program under this subsection (h)(2) need not file a return or amended return under subsection (e) with respect to the liability that is the subject of the proceeding, but must specify in the stipulation that it is participating in the Program and pay or enter into a Department approved payment plan regarding the eligible liability during the remote retailer amnesty period. The stipulation must identify the eligible liability being paid and its corresponding liability periods. i)          Matters Under Audit or Pending in the Fast Track Resolution Program or Before the Informal Conference Board. A tax liability under audit (including audits under review in the Fast Track Resolution Program or before the Informal Conference Board) is eligible for the Program. 1)         After an audit has been concluded, by the issuance of an amended return that becomes final prior to the beginning of the remote retailer amnesty period, the liability determined by the Department is an established liability.  To participate in the Program, the taxpayer must report and remit the eligible liability by converting the established liability into an eligible liability amount using the Simplified Retailer's Occupation Tax Rate. 2)         Prior to the issuance of an amended return after the conclusion of an audit, a taxpayer may participate in the Program by reporting the amount of eligible liability that it estimates will result from the audit on an original or amended return and paying that amount during the remote retailer amnesty period. The Department will continue with the audit (including any proceedings in the Fast Track Resolution Program or before the Informal Conference Board) in the same manner as if no amnesty payment had been made, except that the interest and penalties related to the amnesty payment will be abated. Upon completion of the audit, offsets and refunds from overpayments on periods due to the estimated liability will be allowed. EXAMPLE. As of the beginning of the remote retailer amnesty period, the Department is auditing Taxpayer for retailers' occupation and use taxes due for the periods January 1, 2021, through June 30, 2026. The audit will not be completed before the end of the remote retailer amnesty period. After consulting with the Department's auditor, Taxpayer estimates that it owes an additional Retailers' Occupation Tax obligation of $300 for each of the months of July, August, and September of 2022, applying the simplified retailers' occupation tax rate to its eligible transactions. During the remote retailer amnesty period, Taxpayer files amended returns and pays the additional $300 in tax for each month. After the audit is completed (including any proceedings in the Fast Track Resolution Program or before the Informal Conference Board) in 2026, the Department determines that, taking into account the $300 payments made during the remote retailer amnesty period, Taxpayer has overpaid its Retailers' Occupation Tax obligation for July of 2022 by $150 and owes an additional $50 in Retailers' Occupation Tax for August of 2022. As provided in subsection (i)(2), Taxpayer may receive a refund of the overpayment for July of 2022. Also, if Taxpayer unsuccessfully contests any portion of the $50 underpayment after the conclusion of the audit, or fails to pay in full the $50 no later than the due date for payment of the demand for payment made by the Department, amnesty will be denied on the $300 amount paid during the remote retailer amnesty period with respect to August of 2022, as provided in subsection (m)(2). The abatement of penalties and interest with respect to the $300 paid for September of 2022 is not affected by any changes or proceedings related to the liabilities for July or August of 2022. The Department will offset the $50 in additional tax for August of 2022 against the overpayment for July of 2022 and allow a refund or credit of the remaining overpayment for July of 2022, to the extent the refund or credit is not otherwise barred. Taxpayer may also claim a refund or credit for some or all the $50 additional tax for August of 2022, or for any other amount for July or August of 2022, providing the refund or credit would otherwise be allowable. j)          Criminal Investigation or Case. Section 2-13(c)(5) of the ROTA provides that amnesty may not be granted to taxpayers that are a party to any criminal investigation or criminal litigation that is pending in any circuit court, any appellate court, or the Supreme Court of this State for nonpayment, delinquency or fraud in relation to any State tax imposed by any law of the State of Illinois. [35 ILCS 120/2-13(c)(5)] A taxpayer who is a party to a pending investigation or case is ineligible to participate in the Program with respect to the tax periods under investigation or contained in the complaint, information, or indictment. k)         Eligible Liabilities. Under Section 2-13 of the ROTA, the Program applies to any State or local retailers' occupation tax liabilities arising from any eligible transaction made during the eligibility period. Each liability that comes within the definition of "eligible liability" and meets the other criteria for a taxpayer to participate in the Program is generally divisible into two parts:  the eligible liability that must be paid during the remote retailer amnesty period, or pursuant to a Department approved payment plan, and the penalty and interest that may be abated under the Program. An exception to this rule is the reimbursement of collection expenses incurred by the Department, when those expenses are not deemed by statute to be part of the related tax liabilities. The obligation to pay these expenses is not a penalty that may be abated by participation in the Program, nor does failure to pay one of these expenses during the remote retailer amnesty period, or pursuant to a Department approved payment plan, disqualify the taxpayer from the benefits of amnesty. The following examples are illustrative of items that may be characterized as eligible liabilities or as penalties or interest that may be abated, or as expenses that are neither eligible liabilities nor penalties: 1)         A taxpayer who has paid all of the tax due for a period prior to the remote retailer amnesty period, but has not yet paid all of the penalty and interest associated with the liability, may not participate in the Program with respect to the penalty or interest. This subsection (k)(l) applies regardless of the reason the tax has been paid, but not the penalty or interest, including instances when the taxpayer filed a return and paid its tax late, and so incurred late filing and late payment penalties, or because amounts paid by or collected from the taxpayer were applied against tax before being applied against penalty and interest pursuant to 86 Ill. Adm. Code 700.500. A taxpayer may not seek to retroactively reapply payments previously made to the Department for the purpose of creating eligible liabilities eligible for the Program or increasing the amount of penalties and interest that will be abated as the result of the taxpayer's participation in the Program. 2)         Over-collections of Use Tax that are required to be remitted to the Department by reason of Section 2-40 of the Retailers' Occupation Tax Act are tax liabilities that may be eligible liabilities rather than penalties that may be abated if the related eligible liability is paid during the remote retailer amnesty period. 3)         The vendor's discount from tax allowed in Section 3 of the Retailers' Occupation Tax for the expenses of collecting and remitting is forfeited when the tax is not properly and timely paid. Any lost discount is a tax liability that may be an eligible liability rather than a penalty that may be abated if the related eligible liability is paid during the remote retailer amnesty period or pursuant to an authorized payment plan. 4)         A collection agency fee that is added to a taxpayer's tax liability under Section 2505-400(a) of the Department of Revenue Law [20 ILCS 2505] is not a penalty but is a tax liability that may be an eligible liability. If an established liability has been referred to a collection agency and the fee is owed to the collection agency, the fee related to the established liability must be paid during the remote retailer amnesty period for the taxpayer to qualify for abatement of penalties and interest. However, if a taxpayer makes any payment of any portion of an established liability to a collection agency, the fee due the collection agency will be added to and included in the eligible liability that must be paid during the remote retailer amnesty period for the taxpayer to qualify for amnesty. 5)         The recording fees that must be paid by a taxpayer before a lien for unpaid taxes may be released under Section 5a, 5b, or 5c of the Retailers' Occupation Tax Act [35 ILCS 120] are not added to the tax liability of the taxpayer and are neither tax liabilities nor penalties. A taxpayer's obligation to pay these fees is not abated by participation in the Program, nor is failure to pay one of these fees grounds for denying use of the simplified retailers' occupation tax rates or the abatement of penalties and interest under the Program. 6)         Responsible officer penalties imposed pursuant to Section 3-7 of the Uniform Penalty and Interest Act [35 ILCS 735] for failure to collect, account for and pay over trust taxes are penalties imposed on the responsible officer, even though the penalty includes unpaid tax, and therefore cannot be eligible liabilities of the responsible officer. However, a responsible officer's employer may participate in the Program. If the underlying trust tax liability of the employer is paid under the Program, the related penalties and interest, and therefore the responsible officer penalty, will be abated. l)          Eligible Periods. Only taxes due for a taxable period ending after December 31, 2020, and prior to July 1, 2026 are eligible for amnesty. The following examples are illustrative: 1)         The usual taxable period for Retailers' Occupation Tax purposes is the calendar month. A taxpayer reporting and paying Retailers' Occupation Tax on a monthly basis may participate in the Program with respect to a liability based on taxable receipts received after December 31, 2020, and prior to July 1, 2026. 2)         One exception to this general rule is the case of a taxpayer authorized to pay and who does pay Retailers' Occupation Tax liability on an annual or quarterly basis. The taxable period for annual taxpayers of Retailers' Occupation Tax is the calendar year during which gross receipts from retail sales were received. Consequently, annual taxpayers of Retailers' Occupation Tax may not participate in the Program with respect to a liability based on receipts received on and after January 1, 2026. Liabilities for receipts received by an annual taxpayer at any time during the 2021 taxable year are eligible for amnesty. The taxable period for quarterly taxpayers is the quarterly period in which gross receipts from retail sales were received. 3)         Another exception to this general rule is the case of a taxpayer required to file and pay occupation tax liabilities from the sale of an aircraft, watercraft, motor vehicle, or trailer on a separate transaction reporting return. Each liability required to be reported on a separate transaction reporting return is a separate liability for purposes of Section 2-13 of the ROTA, and the taxable period for that liability is the date of delivery. m)        Payment of All Taxes Due for a Taxable Period. Section 2-13 of the ROTA provides that remote retailers must make full payment of all State and local retailers' occupation taxes due with respect to the remote retailer's eligible transactions, using the simplified retailers' occupation tax rate, during the remote retailer amnesty period for amnesty to be granted, unless the remote retailer enters into an approved repayment plan with the Department during the remote retailer amnesty period. [35 ILCS 120/2-13] 1)         In order to participate in the Program a taxpayer must pay or enter into an approved repayment plan with regard to the entire eligible liability for each applicable tax period within the eligibility period, irrespective of whether that liability is known to the Department or the taxpayer, or whether the Department has assessed it. 2)         A taxpayer may participate in the Program with respect to an established liability only by either paying during the remote retailer amnesty period the full amount of the eligible liability that is due or entering into an approved payment plan with the Department.  If a taxpayer pays only a portion of an eligible liability during the remote retailer amnesty period without an approved payment plan in place with the Department, and it is subsequently determined that the taxpayer has not paid the full amount of the eligible liability, abatement of penalties and interest for that tax period will be revoked and the simplified retailers' occupation tax rate will no longer be applicable to the liability. n)         Overpayments of Eligible Liabilities. Participation in the Program shall preclude a taxpayer from claiming a refund for an overpayment of an established liability, including when the refund request is based on facts not in existence as of the time the amnesty payment is made. o)         Statutes of Limitation and Other Filing Periods. Participation in the Program does not toll or extend any applicable statute of limitations or other time period for the filing of refund claims, protests with the Department, or actions in circuit court under the Protest Act. The Taxpayers' Bill of Rights Act [20 ILCS 2520] does not toll or extend any applicable statute of limitations. A statute of limitations or other time period that expires during or after the remote retailer amnesty period cannot be revived, even if the taxpayer has failed to satisfy all the requirements of the Program. The Department's procedures for obtaining waivers of statutes of limitations for taxpayers under audit shall continue to apply. p)         Reasonable Cause 1)         Nothing in Section 2-13 of the ROTA or this Section is intended to change the meaning of "reasonable cause" as that term is used in UPIA Section 3-8. The term "reasonable cause" is further explained in 86 Ill. Adm. Code 700.400. 2)         A taxpayer who would be entitled to abatement of a penalty due to "reasonable cause" for its delinquency remains entitled to abatement of that penalty even if it failed to participate in the Program with respect to any unpaid liability associated with that penalty.
86 Ill. Adm. Code 1310.131.185: Remote Retailer Amnesty Program | Justis AI