Illinois has responded to the state’s enormous budget deficit with a generous amnesty program designed to generate a rapid cash flow for fiscal year 2003. The program’s approach features an enormous incentive—the elimination of all accrued penalties and interest for eligible tax liabilities—coupled with the threat of doubled interest and penalties for persons who fail to take advantage of amnesty. The program will run for only six weeks, from October 1, 2003 to November 17, 2003.
The amnesty program will apply to any tax administered by the Illinois Department of Revenue, other than the Motor Fuel Tax. Taxpayers can obtain amnesty for any tax deficiency that arose from January 1, 1983, until July 1, 2002. Payment of back taxes during the amnesty period eliminates all accrued penalties and interest and affords immunity from any criminal prosecution. Any person with a tax liability is eligible unless that person is already the subject of a criminal investigation or is involved in
