Illinois Opens a Penalty-Free Amnesty Window for Non-Compliant Remote Sellers

Summary

• Illinois’ 2026 Remote Retailer Tax Amnesty Program runs 1 August–31 October 2026, letting out-of-state sellers with no physical presence settle historical Retailers’ Occupation Tax (ROT) with penalties and interest waived. [tax.illinois.gov], [illinois.gov]
• It covers unpaid liabilities on sales from 1 Jan 2021 to 30 June 2026 for sellers meeting the threshold (USD 100,000 in gross receipts, or 200+ transactions for pre-2026 quarters; the transaction test is dropped from 1 Jan 2026). [tax.illinois.gov], [fgmk.com]
• Participants may use simplified rates — 9% general merchandise and 1.75% for reduced-rate items (food, medicines, medical appliances) — via MyTax Illinois, with active registration required before filing. [illinois.gov], [content.go…livery.com]

Extended article Enacted under 35 ILCS 120/2-13 (P.A. 104-0006), the Illinois Remote Retailer Tax Amnesty Program targets remote sellers of tangible personal property with no Illinois physical presence that may have fallen short of post-Wayfair obligations. Eligible liabilities cover sales from 1 January 2021 to 30 June 2026. For calendar quarters through 31 December 2025, the threshold was USD 100,000 in gross receipts or 200+ separate transactions in the preceding four quarters; from 1 January 2026 the transaction-count test no longer applies. [tax.illinois.gov], [fgmk.com]

The amnesty applies to the state ROT (including titled/registered items) and locally imposed ROTs administered by IDOR, such as the Chicago Home Rule Municipal Soft Drink ROT. Participants may report using a combined state-and-average-local simplified rate — 9% for general merchandise and 1.75% for qualifying reduced-rate items — though any tax actually collected at a higher rate must be remitted. Full payment (or a completed approved plan) triggers waiver of related penalties and interest, though lien fees, books-and-records penalties, bad-check penalties and collection fees are not waived. Participants must hold an active MyTax Illinois account before filing; as registration can take one to two business days, IDOR urges early action. Notably, Illinois’ ROT is legally imposed on the seller for the privilege of doing business, distinguishing it from a consumer-facing sales tax. [tax.illinois.gov], [illinois.gov], [fgmk.com]