Delinquent Illinois taxpayers have five weeks to pay up, avoid penalties

[Guest guest]

http://newsblogs.chicagotribune.com/clout_st/2010/10/delinquent-illinois-taxpaye\

rs-have-five-weeks-to-pay-up-avoid-penalties.html

October 02, 2010

Delinquent Illinois taxpayers have five weeks to pay up, avoid penalties

Posted by at 1:35 p.m.; updated at 3:17 p.m.

People and businesses who owe back taxes to the state have until Nov. 8 to pay

up without facing fees and fines under a program officials estimate will bring

in hundreds of millions of dollars to help Illinois' struggling pocketbook.

Under the tax amnesty program, anyone owing money for the tax periods between

June 30,2002 and June 30,2009 can pay off debts " without penalty, without

interest, no questions asked, " said Gov. Pat Quinn today.

The state has sent letters to about 250,000 people who owe taxes, including some

individuals the state is planning to audit. The idea is to give people an

incentive to make good by waiving penalties that can range from 10 percent to 40

percent of the amount that is owed.

If delinquent taxpayers don't settle their debts in the next five weeks, those

fines will double. The penalty waiver does not apply to filing fees or penalties

for writing bad checks, and those under criminal investigation or with pending

court cases do not qualify.

A legislative analysis found the state could bring in about $250 million under

the program, though Quinn said an exact number is hard to estimate.

" This is a way in which we can generate revenue and funds for the state to help

us pay our bills, keep people employed, and without further burdening

taxpayers, " said Sen. Dan Kotowski, a Democrat from Park Ridge who sponsored the

measure.

The governor was reluctant to support the proposal in the spring because he felt

it was rewarding those who skirt the law, but Quinn said he came around to the

idea because the state is desperate for funds. But Quinn noted this is not

something the state will do regularly, and those who don't pay during the

amnesty period will faces stepped up collection efforts by the state's revenue

department.

" I think it's safe to say that nobody wants to hear from the Illinois Department

of Revenue, " said agency director Hamer. " Pay by Nov. 8 and sleep easier

at night. "

Quinn's Republican opponent for governor, state Sen. Bill Brady, cast the lone

vote against the tax amnesty program in the Senate this year.

" The state just recently offered a tax amnesty program. By repeating it again so

soon, it almost becomes an incentive for tax cheats to just wait around for the

next one, " said Brady spokeswoman Patty Schuh.

The last tax amnesty program was in 2003 and brought in $530 million for the

state, according to the revenue department.