2026 Illinois Remote Retailer Tax Amnesty Program

Resolve Past Sales Tax Liabilities—Penalty Free

The Illinois Department of Revenue (IDOR) is offering remote retailers a limited-time opportunity to come into compliance and resolve prior sales tax liabilities with a full waiver of penalties and interest. This program applies to businesses that sell to Illinois customers without a physical presence in the state and have unpaid sales tax for the period January 1, 2021 through June 30, 2026, provided they meet the economic nexus threshold (generally $100,000 in annual Illinois sales).

A key advantage of the program is its simplified approach. Participating retailers can submit a single application covering all eligible periods and apply flat tax rates, 9% for general merchandise and 1.75% for qualifying items such as food for off-premises consumption, prescription and nonprescription medications, and medical appliances. This is particularly helpful for businesses that may not have complete historical sourcing or location data.

The application window runs from August 1 through October 31, 2026, and must be completed electronically through MyTax Illinois. Payment is required at the time of filing unless the taxpayer is approved for a payment plan. Businesses not currently registered with IDOR must first complete registration and create a MyTax Illinois account before applying.

This amnesty program presents a valuable opportunity for remote retailers to reduce financial exposure, avoid potential audit risk, and establish a clean compliance position moving forward. If you believe your business may benefit from this program, please contact a member of our team to get started.