Illinois Offers Sweeping Tax Amnesty to Out-of-State Retailers

Illinois hopes to pull thousands of out-of-state businesses into compliance with its sales tax code under a first-of-its-kind penalty forgiveness program for delinquent taxpayers.

The 1,289-page bill (HB2755) enacting the revenue features of the state’s fiscal 2026 budget includes the new Illinois Remote Retailer Amnesty Program. The program allows non-compliant out-of-state sellers to pay past due tax liabilities dating back to 2021 without penalties or interest at a uniform rate. The terms are more generous than the state’s traditional audit-and-penalty regimen or its voluntary disclosure program.

“The idea is to offer them a carrot to pay the taxes due ...