Tax amnesty program brings in $240 million for Illinois

money
Nearly $240 million in unpaid taxes poured into the Illinois Department of Revenue because of the 2019 tax amnesty program. (Photo courtesy: WJBC/File)

By Illinois Radio Network

SPRINGFIELD – More than 63,000 taxpayers came forward and settled tax debts during Illinois’ 2019 tax amnesty program, which captured $240 million in revenue for the state.

“The Tax Amnesty program proved to be successful, and we are pleased so many taxpayers took the opportunity to come into compliance and earn a clean slate with the state of Illinois,” Acting IDOR Director David Harris said in a news release. “Our mission at the department is to ensure all taxpayers are treated fairly. By encouraging taxpayers with liabilities to pay what they owe, we build trust in the system while raising revenues the state can use to invest in our future.”

Tax amnesties have some clear benefits, experts say.

“They are a way for the state to accelerate some revenue into the current year and maybe bring in some revenue that they wouldn’t otherwise have gotten,” said Carol Portman, the president of the Taxpayers Federation of Illinois.

The amnesty program is a good deal for delinquent taxpayers.

“This is the way for taxpayers to reduce their interest in penalty exposure and get everything tied up and cleaned up and on a clean slate going forward,” Portman said.

For the state, the results aren’t as clear-cut.

“It’s kind of a shell game from the state’s perspective. The vast majority of the money they brought in, they would’ve brought in any way – just later,” she said.

Still, Portman cautioned against holding amnesty programs too often. She said if people know that an amnesty program is coming up, they’re likely to skip out on reporting or paying for mistakes until they know it will be penalty-free.

“If they don’t know when there’s going to be another amnesty and a taxpayer finds a mistake, they’re more likely to come forward immediately.”

The program allowed people who owed tax debts dating from July 2011 to June 2018 to pay their back tax bills without penalty.

Illinois Radio Network can be reached at [email protected]

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