The Illinois Department of Revenue (DOR) is allowing remote retailers to resolve unpaid Illinois sales tax obligations through the 2026 Illinois Remote Retailer Tax Amnesty Program. The program is designed for remote sellers, meaning those who sell to Illinois customers without having a physical presence in the state and may have outstanding sales tax liabilities. The program runs from August 1, 2026, to October 31, 2026, and offers several important benefits, including penalty and interest relief, streamlined reporting, and simplified tax rates. 

Eligibility Criteria for the Amnesty Program

To qualify, a retailer must have unpaid Illinois sales tax liabilities related to sales made between January 1, 2021, and June 30, 2026, and must have met the applicable sales or transaction threshold during the relevant period. Notably, remote sellers should note that two different thresholds apply throughout this period. 

For the period between January 1, 2021, and December 31, 2025, a retailer generally qualified as a remote retailer if it had at least USD 100,000 in gross receipts from Illinois sales of TPP during the preceding four calendar quarters or completed 200 or more separate transactions with Illinois customers. Since January 1, 2026, the 200-transaction threshold no longer applies, meaning only the USD 100,000 gross receipts threshold remains.

To participate in the program, remote sellers must be registered with the Illinois DOR, have an active MyTax Illinois account, and submit their application through the MyTax Illinois system. The registration process generally takes one to two business days to complete.

Eligible remote sellers can have all penalties and interest waived on qualifying tax liabilities. Additionally, they can use a streamlined reporting process and submit a single application covering all eligible periods they want to resolve. Also, the program uses simplified tax rates, with participants paying 9% on general merchandise and 1.75% on qualifying items, such as food for off-site consumption, prescription and non-prescription medicines, drugs, and medical appliances.

Conclusion

Remote sellers making in-scope sales to Illinois consumers should determine whether they have any outstanding taxes and whether they meet the eligibility criteria for the tax amnesty program. Choosing not to participate in the program despite having unpaid taxes may expose remote sellers to audits, additional penalties, and interest. 

More specifically, the DOR may assess sales tax at a 15% rate on the gross receipts associated with sales for which the tax location cannot be determined. The undetermined-location rate may be applied during an audit for any period under review, including reporting periods before January 2026.