Illinois is offering an amnesty for Use Tax based upon purchases that were not subject to sales tax. This is for years 2004 – 2009. 2010 is payable on the FY2010 IL1040. The details below are from the Illinois Department of Revenue website. If you need any assistance please contact our office at 847-690-9454.
What is Use Tax Amnesty?
Amnesty provides the opportunity for taxpayers to pay certain outstanding tax liabilities and to have penalties and interest waived for taxes paid in full during the amnesty period. Use Tax Amnesty covers purchases you made from July 1, 2004, through December 31, 2010. To avoid penalty and interest you must file and pay your use tax from January 1, 2011, through October 15, 2011.
How do I participate in the Use Tax Amnesty?
You must file a separate paper Form ST-44, Illinois Use Tax Return, for each year (2004, 2005, 2006, 2007, 2008, 2009, and 2010) that you have a use tax liability and write “Amnesty” in red on the top of each form.
If I file an ST-44, Illinois Use Tax Return, during the amnesty period, does it satisfy my liability with the Department of Revenue?
If the Department of Revenue finds that you owe additional tax, we may assess the additional tax plus applicable penalties and interest. We conduct routine audits based on information received from third parties, including the U.S. Customs Service and other states.
How do I calculate the amount of use tax I owe during the amnesty period?
To complete each form, you must figure your amount of purchases one of the following ways:
- If you know the amount of your purchases, follow the instructions on Form ST-44, Illinois Use Tax Return.
- If you do not know the amount of your purchases, you may estimate that amount by using the chart below. Note: Use the corresponding Adjusted Gross Income (AGI) for each year that you owe use tax. As an example, if you owe use tax for tax year 2005, use your 2005 AGI.
- If you know the amount of some of your purchases but not all, add the known amount of purchases to the estimated amount from Column A below for Form ST-44, Line 1a, and multiply that amount by .0625 for Form ST-44, Line 1b.
Note: This chart is only an estimate. If we find that you owe additional tax, we may assess the additional tax plus applicable penalties and interest.
| If your AGI (IL-1040, Line 1) is | Column A this is your estimated purchases for ST-44, Line 1a | Column B this is your estimated use tax for ST-44, Line 1b |
| $0 – $10,000 | $48 | $3 |
| $10,001 – $20,000 | $144 | $9 |
| $20,001 – $30,000 | $240 | $15 |
| $30,001 – $40,000 | $336 | $21 |
| $40,001 – $50,000 | $432 | $27 |
| $50,001 – $75,000 | $608 | $38 |
| $75,001 – $100,000 | $832 | $52 |
| >$100,000 | Multiply AGI by .0096 | Multiply Column A by .0625 |
Does Use Tax Amnesty apply to businesses?
No, Use Tax Amnesty does not apply to business taxpayers. However, business taxpayers are liable for use tax. Businesses that are already registered as retailers can report and pay their use tax using Form ST-1, Sales and Use Tax Return. Businesses that are not required to be registered as retailers can report and pay their Illinois Use Tax on Form ST-44, Illinois Use Tax Return.