Key takeaways
- Illinois' Remote Retailer Tax Amnesty ran from August 1 to October 31, 2026 and has closed.
- It covered Retailers' Occupation Tax on remote sales from January 1, 2021 to June 30, 2026, at simplified rates of 9% or 1.75%.
- Sellers who missed it can use IDOR's Voluntary Disclosure Program with Form BOA-2, before IDOR starts an audit.
- The VDP limits the lookback to four years and eliminates penalties, but interest is due.
- Since January 1, 2026, Illinois economic nexus is $100,000 in gross receipts only; the 200-transaction test is gone.
- Missing delivery addresses can lead to tax at 15% of gross receipts in an audit.
In short: Illinois' Remote Retailer Tax Amnesty Program closed on October 31, 2026. It let out-of-state sellers pay unpaid Retailers' Occupation Tax on Illinois sales from January 1, 2021 to June 30, 2026 with penalties and interest waived. If you missed it, the main route now is IDOR's Voluntary Disclosure Program: file Form BOA-2 before IDOR contacts you, and penalties are waived but interest is due. Since January 1, 2026, the only nexus test is $100,000 in sales.
Updated November 2026: The amnesty window ran from August 1 to October 31, 2026 and has now closed, so this guide explains what remote sellers can do next (IDOR Bulletin FY 2026-28).
What was the Illinois Remote Retailer Tax Amnesty Program?
It was a one-time program for remote retailers that owed Illinois sales tax. Qualifying sellers paid the tax at a simplified rate, and IDOR waived the related penalties and interest.
The program was created by Public Act 104-0006, which added Section 2-13 to the Retailers' Occupation Tax Act (35 ILCS 120/2-13). It ran from August 1, 2026 through October 31, 2026, and IDOR has not announced an extension (IDOR Bulletin FY 2026-28). It is separate from Illinois' general 2025 Tax Amnesty Program, which ran in October and November 2025 and has ended (IDOR amnesty page).
What can remote sellers do now that the amnesty has closed?
If IDOR has not contacted you, apply to its Voluntary Disclosure Program. Then register and collect Illinois tax going forward. The simplified amnesty rates and the full penalty and interest waiver are no longer available (IDOR Bulletin FY 2026-28).
| Item | Remote Retailer Amnesty (closed) | Voluntary Disclosure Program (open) |
|---|---|---|
| Deadline | October 31, 2026 | Before IDOR starts an audit or investigation |
| Periods | January 1, 2021 to June 30, 2026 | Lookback limited to four years |
| Tax rate | Simplified 9% or 1.75% | Regular tax due for each period |
| Penalties | Waived (with some exceptions) | Eliminated once all tax and interest is paid |
| Interest | Waived | Due |
| Tax collected but not remitted | Pay the higher amount collected | Must be paid for all periods, even beyond four years |
To use the program, send Form BOA-2 to IDOR's Problems Resolution Division. You must also register, through MyTax Illinois or with Form REG-1 sent alongside the BOA-2. If IDOR approves, you get a signed BOA-2 and must file the returns and pay within 30 days. You can ask in writing for a 60-day extension within that first 30 days. After IDOR bills the interest, payment is due within 60 days (IDOR Voluntary Disclosure Program). See what a VDA is and whether you need one.
Sellers that do nothing may face an audit with additional penalties and interest (IDOR Bulletin FY 2026-28). The risk is higher where records are thin. If you cannot show where destination sales were delivered, IDOR assesses tax at 15% of gross receipts, and it can use that rate in audits of periods before 2026. Penalties and interest follow the Uniform Penalty and Interest Act and IDOR Publication 103 (IDOR Bulletin FY 2026-12).
Who qualified for the Illinois remote retailer amnesty?
Retailers that sold tangible personal property to Illinois customers, had no physical presence in Illinois, and owed sales tax on sales made between January 1, 2021 and June 30, 2026. They must also have met the Illinois tax remittance threshold for all or part of that period.
That threshold depends on the quarter (IDOR Bulletin FY 2026-28):
- Quarters ending from January 1, 2021 to December 31, 2025: $100,000 or more in gross receipts from Illinois sales, or 200 or more separate Illinois transactions, over the four preceding quarters.
- Quarters starting on or after January 1, 2026: only the $100,000 gross receipts test.
The statute also set limits. Amnesty did not cover tax already paid before the program. It was not available to taxpayers in pending criminal or civil litigation over nonpayment, delinquency or fraud on an Illinois tax, or to anyone who commits fraud or intentional misrepresentation in their amnesty filings. It only covered Retailers' Occupation Tax owed as a remote retailer, not other taxes (35 ILCS 120/2-13).
A retailer that ships any order from Illinois inventory is not a remote retailer (IDOR Bulletin FY 2026-12). If you are under audit, the Voluntary Disclosure Program is not available, so work with your auditor.
What did the amnesty cover, and at what rate?
It covered State Retailers' Occupation Tax and the local retailers' occupation taxes IDOR administers, at two simplified flat rates. Sellers reported statewide totals instead of local jurisdiction detail. These rates are no longer available for new filings.
- 9% of gross receipts for general merchandise (items taxed at the 6.25% State rate).
- 1.75% for items taxed at the 1% State rate, such as qualifying food for off-premises consumption, medicines, drugs and medical appliances.
Without records supporting the 1.75% rate, sales were treated as general merchandise at 9%. Sellers that collected more than the simplified rate from customers had to pay the higher amount they collected (IDOR Bulletin FY 2026-28). Sales were taxed at the simplified rate unless the seller held a valid exemption number, resale certificate or direct pay permit on file (35 ILCS 120/2-13).
IDOR did not waive everything. Lien fees, books and records penalties, bad check penalties, collection agency fees and certain audit penalties stayed due.
What if you applied for the amnesty or have a payment plan?
Applications were filed electronically through MyTax Illinois, from the ST-1 account, with full payment or a payment plan request by October 31, 2026 (IDOR amnesty page). Liabilities could not be edited once IDOR processed them.
Payment plans were for financial hardship. They run 6, 12, 18 or 24 months, need a down payment, and start automatic withdrawals on December 1, 2026. Interest accrues from November 1, 2026. If you miss plan payments, you lose the amnesty and the liability is recalculated at regular rates (IDOR Bulletin FY 2026-28).
What changed in Illinois economic nexus on January 1, 2026?
Illinois dropped its 200-transaction test. From January 1, 2026, a remote retailer or marketplace facilitator has to collect Illinois tax only if its cumulative gross receipts from sales to Illinois buyers reach $100,000 in a 12-month lookback period (IDOR Bulletin FY 2026-12).
| Item | Before January 1, 2026 | From January 1, 2026 |
|---|---|---|
| Nexus test | $100,000 gross receipts or 200 transactions | $100,000 gross receipts only |
| Lookback | 12 months (four preceding quarters) | 12 months, tested on a rolling quarterly basis |
| Missing location data on destination sales | Unprocessable-return penalty | Tax assessed at 15% of gross receipts |
| Sellers that met only the 200-transaction test | Collect State and local ROT | Stop collecting; registration changed to voluntary use tax |
Sellers that met only the transaction test had to review their sales for the 12 months ending December 31, 2025. If they stayed under $100,000, they stop remitting Retailers' Occupation Tax on remote sales from January 1, 2026. For quarters starting after March 31, 2026, they must retest each quarter and resume if they cross $100,000 (IDOR Bulletin FY 2026-12). Alaska made a similar move; see Alaska removes its sales tax transaction threshold. For other states, see our guide to economic nexus by state.
Is it Retailers' Occupation Tax or use tax?
For remote sellers over the threshold, it is Retailers' Occupation Tax (ROT). Since January 1, 2021, under the Leveling the Playing Field for Illinois Retail Act, those sellers collect State and local ROT at the rate of the buyer's Illinois destination (IDOR Bulletin FY 2024-08).
Sales shipped from outside Illinois to Illinois buyers use the rate in effect where the goods are delivered. Sales sourced inside Illinois use the local rate at the inventory or selling location. You need the customer's full delivery address and proof of shipping origin (IDOR Bulletin FY 2026-12).
Sellers under the threshold do not owe ROT, but their buyers still owe use tax. They may choose to collect and remit use tax if they notify IDOR (IDOR Bulletin FY 2024-08). A seller under the threshold that collects destination ROT after January 1, 2026 should refund the customer or remit it as use tax on Form ST-1 (IDOR Bulletin FY 2026-12). IDOR keeps its resources for this regime on its Leveling the Playing Field resource page.
How do marketplace facilitator rules apply?
Marketplace facilitators that meet the threshold collect Illinois ROT on all retail sales to Illinois buyers, including their sellers' sales. A marketplace seller is not liable for those sales if it got a certification from the facilitator before selling (IDOR Bulletin FY 2024-08).
Sales through a certifying marketplace are left out of the seller's own threshold calculation. The facilitator counts both its own sales and its sellers' sales. A platform that only advertises, without collecting and passing on payment, is not a facilitator (IDOR Bulletin FY 2026-12). Read more on marketplace facilitator laws.
Key dates for Illinois remote sellers
These are the dates that mattered in 2026, and the ones that still apply.
| Date | What happens |
|---|---|
| January 1, 2021 | Destination-based ROT for remote retailers and marketplace facilitators begins; start of amnesty eligibility period |
| January 1, 2026 | 200-transaction test removed; $100,000 test only; 15% rate for undetermined locations |
| June 30, 2026 | End of amnesty eligibility period |
| August 1, 2026 | Amnesty application window opened |
| August 20, 2026 | Form ST-1 due for July 2026 |
| October 31, 2026 | Amnesty closed: last day to apply and pay, or request a payment plan |
| November 1, 2026 | Interest starts on amnesty payment plans |
| December 1, 2026 | First automatic payment plan withdrawal |
| Ongoing | Voluntary Disclosure Program available until IDOR starts an audit or investigation |
What should remote sellers do now?
Check your exposure first, then pick the route that fits your situation.
- Measure Illinois sales for each quarter since 2021 against the threshold that applied then.
- Exclude marketplace sales covered by a facilitator certification.
- If you applied: keep enough funds for payment plan withdrawals from December 1, 2026, and file every return on time.
- If you missed the amnesty: register with IDOR and file Form BOA-2 before IDOR contacts you. Budget for four years of tax plus interest.
- Going forward: test the $100,000 threshold every quarter, keep full delivery addresses and file Form ST-1 on time.
To keep Illinois and other states current, read how to automate US sales tax filing in every state.
Sources
- IDOR Informational Bulletin FY 2026-28: 2026 Illinois Remote Retailer Tax Amnesty Program
- IDOR: 2026 Illinois Remote Retailer Tax Amnesty Program page
- IDOR news release: 2026 Remote Retailer Amnesty Program
- Illinois General Assembly: 35 ILCS 120/2-13 (P.A. 104-6)
- IDOR Informational Bulletin FY 2026-12: Changes to destination-based Retailers' Occupation Tax
- IDOR Informational Bulletin FY 2024-08: Remote retailers and marketplace facilitators
- IDOR: Leveling the Playing Field for Illinois Retail Act resource page
- IDOR: Voluntary Disclosure Program
How Taxually handles this
Taxually's LumaTax runs a nexus analysis on your sales, helps you register in states such as Illinois, and prepares and files multi-state sales tax returns. LumaTax is currently available to enterprises and service providers such as accounting firms; e-commerce sellers can join the waiting list.
Related guides:
Frequently asked questions
When did the Illinois tax amnesty for remote retailers end?
On October 31, 2026. The application window opened on August 1, 2026, and IDOR has not announced an extension.
Can I still apply for the Illinois remote retailer amnesty?
No. Applications with payment, or payment plan requests, had to be filed in MyTax Illinois by October 31, 2026. The main option now is the Voluntary Disclosure Program.
Which periods did the Illinois remote retailer amnesty cover?
Sales made from January 1, 2021 through June 30, 2026.
What rate applied under the amnesty?
A simplified 9% of gross receipts for general merchandise, or 1.75% for items taxed at the 1% State rate, such as qualifying food and medicines. These rates are no longer available.
What is the Illinois economic nexus threshold in 2026?
$100,000 in cumulative gross receipts from sales to Illinois buyers in a 12-month lookback period. The 200-transaction test was removed from January 1, 2026.
What can I do if I missed the Illinois amnesty?
Apply to IDOR's Voluntary Disclosure Program with Form BOA-2 before an audit or investigation starts, and register with IDOR. The lookback is limited to four years and penalties are eliminated once tax and interest are paid, but interest is still due.
What happens to amnesty payment plans?
Automatic withdrawals start on December 1, 2026, and interest accrues from November 1, 2026. If you miss payments, you lose the amnesty and the liability is recalculated.
Do marketplace sellers owe Illinois sales tax on marketplace sales?
Not if the marketplace facilitator certified before the sales that it assumes the retailer's duties. Those sales are also left out of the seller's own threshold calculation.
