Illinois 2010 Tax Amnesty Regulations: Complex Rules Create Both Opportunities and Limitations for Taxpayers

The Bloomberg BNA Tax Management Weekly State Tax Report filters through current state developments and analyzes those critical to multistate tax planning.

Between Oct. 1, 2010, and Nov. 8, 2010, Illinois is offering a tax amnesty, available to eligible taxpayers with unpaid liabilities for tax years ending after June 30, 2002, and before July 1, 2009. Taxpayers that take advantage of the amnesty may reap substantial benefits in terms of interest and penalty relief and avoidance of double interest and penalties for not participating. However, they also face a very complex set of rules regarding issue preservation, tax refund offset, and anticipated federal changes. In this article, authors George J. Barry and Brian Walsh, of Deloitte Tax LLP, discuss the new regulations and some of the questions they raise for taxpayers debating the wisdom of participation.

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