Penalties and Interest for Illinois Taxes
PUB-103 (R-03/09)
Penalty rates for returns due on or after:
January 1, 2001 — January 1, 2004 — January 1, 2005 —
December 31, 2003 December 31, 2004 to current
Late-filing (or nonfiling)
penalty
Late-payment penalty
(for unpaid tax shown
due on an original or
amended return)
Tier 1 — the lesser of $250 or 2%
of the tax required to be shown due
on the return and reduced by timely
payments or credits. If the return is
timely filed but cannot be processed,
you will have 30 days to correct the
return before penalty is due.
Tier 2 — If you do not file a return
within 30 days after receiving a no-tice
of nonfiling, an additional penalty
will be imposed equal to the greater
of $250 or 2% of the tax shown due
on the return without regard to timely
payments. The additional penalty
may not exceed $5,000. The penalty
will be assessed even if there is no
tax due.
Exceptions
Motor Fuel Use Tax — 10% of the
tax or $50, whichever is greater.
Coin-Operated Amusement — 30%
for failure to obtain a sticker.
Penalty is based on the number of
days the tax required to be shown
due on the return is late.
1 - 30 days: 2%
31 - 90 days: 5%
91 - 180 days: 10%
181 + days: 15%
Note: If penalty for underpayment
of estimated or accelerated tax pay-ments
is assessed, the tax amount
that this penalty is assessed on is
subtracted from the total tax. The
remainder is the tax base on which
the late-payment penalty may be
assessed.
Exceptions
Motor Fuel Use Tax — 10% of the
tax or $50, whichever is greater.
Coin-Operated Amusement — 30%
for failure to obtain a sticker.
Tier 1 — the lesser of $250 or 2%
of the tax required to be shown due
on the return and reduced by timely
payments or credits. If the return is
timely filed but cannot be processed,
you will have 30 days to correct the
return before penalty is due.
Tier 2 — If you do not file a return
within 30 days after receiving a no-tice
of nonfiling, an additional penalty
will be imposed equal to the greater
of $250 or 2% of the tax shown due
on the return without regard to timely
payments. The additional penalty
may not exceed $5,000. The penalty
will be assessed even if there is no
tax due.
Exceptions
Motor Fuel Use Tax — 10% of the
tax or $50, whichever is greater.
Coin-Operated Amusement — 30%
for failure to obtain a sticker.
Penalty is based on the number of
days the tax required to be shown
due on the return is late.
1 - 30 days: 2%
31 - 90 days: 10%
91 - 180 days: 15%
181 + days: 20%
Note: If penalty for underpayment
of estimated or accelerated tax pay-ments
is assessed, the tax amount
that this penalty is assessed on is
subtracted from the total tax. The
remainder is the tax base on which
the late-payment penalty may be
assessed.
Exceptions
Motor Fuel Use Tax — 10% of the
tax or $50, whichever is greater.
Coin-Operated Amusement — 30%
for failure to obtain a sticker.
Page 7 of 12
Tier 1 — the lesser of $250 or 2%
of the tax required to be shown due
on the return and reduced by timely
payments or credits. If the return is
timely filed but cannot be processed,
you will have 30 days to correct the
return before penalty is due.
Tier 2 — If you do not file a return
within 30 days after receiving a no-tice
of nonfiling, an additional penalty
will be imposed equal to the greater
of $250 or 2% of the tax shown due
on the return without regard to timely
payments. The additional penalty
may not exceed $5,000. The penalty
will be assessed even if there is no
tax due.
Exceptions
Motor Fuel Use Tax — 10% of the
tax or $50, whichever is greater.
Coin-Operated Amusement — 30%
for failure to obtain a sticker.
Penalty is based on the number of
days the tax required to be shown
due on the return is late.
1 - 30 days: 2%
31 + days: 10%
However, after the initiation of an
audit or investigation, you will owe
a late-payment penalty as follows:
15% if the tax is paid within 30 days
and 20% if tax is paid more than
30 days after the issuance of the
audit-prepared amended return or
Form IL-870, Waiver of Restrictions,
at the conclusion of the audit. The
20% penalty rate also applies to an
amount paid before the expiration
of the 30-day period if paid under
protest or if you subsequently file
a claim for credit or refund of that
amount.
Note: If penalty for underpayment
of estimated or accelerated tax pay-ments
is assessed, the tax amount
that this penalty is assessed on is
subtracted from the total tax. The
remainder is the tax base on which
the late-payment penalty may be
assessed.
Exceptions
Motor Fuel Use Tax — 10% of the
tax or $50, whichever is greater.
Coin-Operated Amusement — 30%
for failure to obtain a sticker.
