Illinois Corporate Franchise Tax Amnesty Information Sheet Business Services
Pursuant to Public Act 101-0009, the Illinois General Assembly has amended the Franchise Tax and License Fee Amnesty Act of 2007. Following are some of the provisions pertaining to the new amnesty program:
Who is eligible for new amnesty program?
All domestic (Illinois) corporations, foreign corporation authorized to transact business in Illinois, and all foreign corporations that have been transacting business in Illinois without authority are eligible to take part in the amnesty program.
When is the amnesty program?
- The amnesty program shall be “for a period between October 1, 2019 and November 15, 2019”.
- The Department of Business Services (“the Department”) will not accept any amnesty applications prior to October, 1, 2019.
- The Department has drafted a form to be used by all corporations requesting amnesty. The form will be available for review on or before September 15, 2019.
- The amnesty forms must be dated with a date that is within the amnesty period, i.e. between October 1, 2019 and November 15, 2019. If the form is not dated correctly, the amnesty application will be rejected.
What tax relief is granted under the amnesty program?
- Under the amnesty program, the liability for penalties and interest due, on the following, shall be abated:
- Unreported increases to paid- in capital;
- Annual franchise tax.
- Any increase of paid-in capital or issued shares pursuant to Section 14.30 or 14.35.
- Initial franchise tax.
- All of the franchise tax due must be paid. The amnesty only applies to penalties and interest on the franchise tax.
- The Department will collect the additional tax and only the last 7 years of annual tax.