Publication 103, Penalties and Interest for Illinois Taxes

Taxpayer Bill of Rights

You have the right to call the Department of Revenue for help in resolving tax problems.

You have the right to privacy and conﬁdentiality under most tax laws.

You have the right to respond, within speciﬁed time periods, to Department notices by asking questions, paying the

amount due, or providing proof to refute the Department’s ﬁndings.

You have the right to appeal Department decisions, in many instances, within speciﬁed time periods, by asking for

Department review, by ﬁling a petition with the Illinois Independent Tax Tribunal, or by ﬁling a complaint in circuit court.

If you have overpaid your taxes, you have the right, within speciﬁed time periods, to ﬁle for a credit (or, in some cases,

a refund) of that overpayment.

For more information about these rights and other Department procedures, you may write us at the following address:

Problems Resolution Ofﬁce

Illinois Department of Revenue

PO Box 19014

Springﬁeld, IL 62794-9014

Publication 103

Penalties and Interest for Illinois Taxes

The information in this publication is

current as of the date of the publication.

Please visit our website at

tax.illinois.gov to verify you have the

most current revision.

This publication is written in the plain

English style so the tax information is

easier to understand. As a result, we

do not directly quote Illinois statutes

or the Illinois Administrative Code.

The contents of this publication are

informational only and do not take

the place of statutes, rules, and court

decisions.

About this publication

The purpose of this publication is to explain penalties and interest assessed on returns

due on or after January 1, 1994. If you need penalty or interest information for earlier

liabilities, see the appropriate tax act. The objectives of this publication are to

answer general questions about penalty and interest,

identify and deﬁne each penalty,

explain how each penalty is calculated and assessed,

explain how interest is calculated, and

provide penalty and interest rates.

We encourage you to let us calculate your penalties and interest and bill you. However,

if you annualize your income to compute your estimated income tax installments, you

must complete and attach to your return Form IL-2210, Computation of Penalties for

Individuals, or Form IL-2220, Computation of Penalties for Businesses, to show when

your income was earned.

This publication does not cover penalties and interest assessed through the Racing

Privilege Tax Act, the Property Tax Code, or the Real Estate Transfer Tax Act. For

information on these taxes, see the appropriate tax acts.

Get Illinois Department of Revenue forms and information at tax.illinois.gov

Visit our website at tax.illinois.gov

Call 1 800 732-8866 or 217 782-3336

Call our TDD (telecommunications

device for the deaf) at 1 800 544-5304

For information or forms

Illinois Department of Revenue

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Penalties and Interest for Illinois Taxes

Page 2 of 13

Contents

General Information

Deﬁnitions .............................................................................................................................................3

Processable return ......................................................................................................................3

Due dates ....................................................................................................................................3

Tax shown due .............................................................................................................................3

Tax required to be shown due......................................................................................................3

Unadmitted liability ......................................................................................................................3

Trust tax .......................................................................................................................................3

Amnesty .......................................................................................................................................3

What penalties can be assessed? ........................................................................................................3

How is interest calculated? ...................................................................................................................3

Penalty Information

What are the most common penalties and when do they apply? ........................................................ 4

Late-ﬁling (or nonﬁling) penalty .................................................................................................. 4

Late-ﬁling (or nonﬁling) penalty for transaction return ................................................................ 4

Late-payment penalty ................................................................................................................. 4

Bad check penalty ...................................................................................................................... 4

Cost of collection fee .................................................................................................................. 4

Failure to ﬁle correct information return penalty ......................................................................... 4

Fraud penalty .............................................................................................................................. 4

Frivolous return penalty .............................................................................................................. 4

Negligence penalty ..................................................................................................................... 5

Personal liability penalty ............................................................................................................. 5

What are the penalties for abusive tax avoidance transactions (abusive tax shelters)? ..................... 5

Participant penalties ................................................................................................................... 5

Material advisor penalties ........................................................................................................... 5

What if I believe I have a good reason for penalty abatement? ........................................................... 5

Penalty Rates ......................................................................................................................... 6 through 11

Penalties for Tax Avoidance Transactions .............................................................................. 12

Interest Rates ........................................................................................................................................13

Ofﬁce locations and phone numbers .................................................................................. Back

Penalties and Interest for Illinois Taxes

PUB-103 (R-10/19, R-07/20 Back reformatted)

Page 3 of 13

General Information

Deﬁnitions

Processable return

For a return to be considered “processable,” it must

be signed by the person authorized by law to sign it,

be in a format we have prescribed or approved, and

contain all information, schedules, and supporting

documents necessary to determine the correct tax and

to make allocations.

Due dates

“Due dates” for payments and ﬁling returns mentioned in this

publication are referred to as “original due date” and “extended

return due date.”

Original due date — This is the date the payment or

return is due without regard to extensions. Due dates

differ depending on the tax type. The due dates for each

tax type can be found in the instructions for the corre-

sponding tax type.

Extended return due date (income tax only, except

withholding tax) — Illinois Income Tax law provides for an

automatic “extended due date” for ﬁling only. All tax must

be paid by the original due date even if the return has not

been ﬁled.

In some cases, the Internal Revenue Service (IRS) gives an

additional extension of time to ﬁle income or withholding tax

returns. If the IRS grants you this extension, we will grant

you the same extension.

Tax shown due

This is the amount of tax you actually report on an original or

amended return.

Tax required to be shown due

This is the tax amount that is required to be shown due on an is required to be shown due on an

original or amended return. original or amended return.

Unadmitted liability

Tax found due that a taxpayer does not admit to owing.

Trust tax

A trust tax is a tax you are required to collect from your employee

or customer and remit to us, e.g., sales or withholding taxes.

Amnesty

The Illinois Tax Delinquency Amnesty Act has provided three

opportunities for taxpayers to pay outstanding tax liabilities

and to have eligible penalties and interest for taxes paid

during an amnesty period waived.

1) For periods ending after June 30, 1983, and prior to

July 1, 2002 — If your liability qualiﬁed for amnesty and

you did not pay that liability during the amnesty period

held October 1, 2003, through November 17, 2003, your

penalty and interest amounts may be doubled.

2) For periods ending after June 30, 2002, and prior to

July 1, 2009 — If your liability qualiﬁed for amnesty and

you did not pay that liability during the amnesty period

held October 1, 2010, through November 8, 2010, your

penalties and interest amounts may be doubled.

3) For periods ending after June 30, 2011, and prior to

July 1, 2018 — If your liability qualiﬁed for amnesty and

you did not pay that liability during the amnesty period

held October 1, 2019, through November 15, 2019, your

penalty and interest amounts will not be waived.

What penalties can be assessed?

If you do not ﬁle your return, pay your tax on time, fail to

provide correct information by the date requested, or do not

ﬁle a “processable” return, you may be assessed penalties.

Reference “What are the most common penalties and when

do they apply?”

How is interest calculated?

On January 1, 1994, a uniform interest rate was created.

This allows us to charge interest on underpayments and pay to charge interest on underpayments and pay

interest on overpaymentsinterest on overpayments at the same rate for most taxes we

administer. Interest is simple interest ﬁgured using a daily

rate. The rate is reviewed twice each year — on January 1

and July 1 — and adjusted according to the “underpayment

rate” or the “short term rate” established under the Internal

Revenue Code (IRC Section 6621).

Prior to January 1, 2004, the rate of interest payable on

overpayments and charged on charged on underpayments was the

“underpayment rate.” During the period from January 1, 2004,

through December 31, 2013, interest accrued at the “short

term federal rate” for the ﬁrst year that the overpayment or

underpayment accrued interest. This is 3 percent less than

the “underpayment rate.” After one year, interest would accrue

on any remaining balance at the “underpayment rate.” Interest

accruing after December 31, 2013, on an overpayment or

underpayment accrues at the “underpayment rate,” regardless

when the overpayment or underpayment arose. The following

formula is used to calculate interest

tax (+ penalty, if applicable) due x interest rate ÷ 365 =

daily interest amount x number of days = total interest due.

Interest charged to you: Interest begins to accrue the day after

the date the payment is due through the date you pay the tax.

Interest paid by us: Unless an overpayment is refunded or

a credit is approved within 90 days after the return due date,

interest will be paid to you from the due date of the original

return, the date a processable return is ﬁled, or the date of

overpayment (whichever date is latest).

Returns due on or after January 1, 2001: Interest is no

longer charged on penalties.

Interest is calculated using 366 days during leap years.

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What are the most common penalties

and when do they apply?

Late-ﬁling (or nonﬁling) penalty

You owe this penalty if

you do not ﬁle a return by the due date, including any

extended due date; or

you timely ﬁle a return that cannot be processed and

you do not correct it within 30 days (for returns due on

or after January 1, 1996) or 21 days (for returns due

on or after January 1, 1994 through December 31,

1995) of the date we notify you that we cannot process

your return.

Late-ﬁling (or nonﬁling) penalty for transaction

return

You owe this penalty if

you are a retailer required to ﬁle a transaction return

(ST-556, Sales Tax Transaction Return, or

ST-556-LSE, Transaction Return for Leases);

you do not ﬁle the transaction return by the due date as

required by the Retailers’ Occupation Tax Act and the

Use Tax Act; and

the transaction return, if it had been properly ﬁled,

would not have resulted in the imposition of a tax

(e.g., dealer trade or exempt sale).

Note: If you owe this late-ﬁling (or nonﬁling) penalty for a zero

liability transaction return, you are not subject to the

standard late-ﬁling (or nonﬁling) penalty.

Late-payment penalty

Regular tax due

You owe this penalty if you do not pay the tax due by the

due date of the payment or the original due date of the return

without regard to extensions. Due dates differ depending on

the tax type.

Note: Withholding income tax payment due dates are based

on the assigned payment schedule.

Late-payment penalty for underpayment of estimated or

quarter-monthly tax due

You owe this penalty if you were required to make estimated

or quarter-monthly tax payments and failed to do so, or if you

failed to pay the required amount by the payment due date.

Note: Estimated payments mean quarterly payments for

business and individual income tax. Quarter-monthly

payments include payments for sales and excise tax.

Additional liability due

In general, this penalty is assessed on changes made due

to audit functions and on unadmitted liabilities.

You owe this penalty if

the amount of tax shown on the return is less

than the correct amount of tax due, and you fail

to pay the full amount due within 30 days of the

date we send you a notice and demand, a notice of

math error, or a notice of ﬁnal assessment.

an additional liability is determined in a hearing, and

you do not pay the full amount due within 30 days after

— all proceedings in court to review the ﬁnal

assessment have ended; or

— the period for obtaining a court review of

the ﬁnal assessment has ended and the

review proceedings were never instituted.

we send you a notice of tax liability or a notice of

deﬁciency that becomes a ﬁnal assessment without

a protest and hearing, and you do not pay the full

amount due before the period for ﬁling a

protest expires.

Bad check penalty

You owe this penalty if you send any remittance to the

Department that is not honored by your ﬁnancial institution.

Cost of collection fee

You owe this fee if we send you a request for payment of ﬁnal

liability and you do not pay the full amount of tax, penalties,

and interest shown on the bill within 30 days of the date of the

bill.

Failure to ﬁle correct information return penalty

You owe this penalty if you do not ﬁle a correct information

return by the original due date of the return.

Fraud penalty

You owe this penalty if you ﬁle a return, an amended return,

or a claim for refund or credit with the intent to defraud.

Frivolous return penalty

You owe this penalty if you ﬁle Form IL-1040 and it does not

contain information needed to ﬁgure the correct tax or shows

a substantially incorrect tax because you are taking a frivolous

position or are trying to delay or interfere with the collection of

the tax.

Penalty Information

Penalties and Interest for Illinois Taxes

PUB-103 (R-10/19, R-07/20 Back reformatted)

Page 5 of 13

Negligence penalty

You owe this penalty if, in preparing a return or amended

return, you do not make a reasonable attempt to comply with

the provisions of any tax act, including showing careless,

reckless, or intentional disregard for the law or regulations.

Personal liability penalty

You owe this penalty if you have control, supervision, or

are responsible for ﬁling returns and making payment of the

amount of any trust tax we administer, and willfully do not ﬁle

the return or make the payment, or willfully attempt to evade

or defeat the tax.

What are the penalties for abusive tax

avoidance transactions (abusive tax

shelters)?

These penalties can be divided into two categories, participant

penalties and material advisor penalties.

Participant penalties

Participant penalties are imposed on people or businesses

who have participated in an abusive tax avoidance

transaction. The following three penalties may apply:

1) Failure to disclose participation in a reportable

transaction penalty

You owe this penalty if you fail to provide us with a copy

of the disclosure statement that you were required to

ﬁle with the IRS regarding your participation in a

reportable transaction.

2) Reportable transaction understatement penalty

You owe this penalty on any deﬁciency of Illinois

Income Tax that is caused by participating in any

reportable transaction, if a signiﬁcant purpose of the

transaction is the avoidance or evasion of federal income

tax, or by participating in any “listed transaction.”

3) 100 percent interest penalty

You owe this penalty if you have been contacted by

the IRS or us regarding the use of a potential tax

avoidance transaction and you have a deﬁciency from

that transaction. This penalty is equal to 100 percent of

the amount of interest assessed on the deﬁciency from

the payment due date through the date that a notice of

deﬁciency is issued.

Material advisor penalties

Material advisor penalties are imposed on people or

businesses who have organized, promoted, or sold a

potentially abusive tax shelter. The following three penalties

may apply:

1) Failure to register tax shelter penalty

You owe this penalty if you fail to register a listed

transaction with us.

2) Failure to maintain a list of investors penalty

You owe this penalty if you fail to submit a copy of the

list of your investors to us. As an organizer or material

advisor, you are required to maintain and submit to us a

list of your investors in a listed transaction.

3) Promoting tax shelters penalty

You owe this penalty if you are an organizer or seller of

any plan or arrangement who has knowingly furnished a

false statement about any tax deduction, credit, or other

tax beneﬁt that is obtainable by that plan or arrangement.

For more information about reportable transactions,

listed transactions and tax shelters, visit the IRS website at

www.irs.gov.

What if I believe I have a good reason for

penalty abatement?

If you ﬁled or paid late or your remittance was not honored by

your ﬁnancial institution, and you believe you made a good

faith effort to comply with the law, you may be entitled to an

abatement of late-ﬁling penalty or late-payment penalty due to

“reasonable cause.” To request a waiver of late-ﬁling penalty

or late-payment penalty, you must provide us with a detailed

explanation of the cause of the delay and any documentation

you have to support your request.

Penalty Information

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Penalties and Interest for Illinois Taxes

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Penalty rates for returns due on or after:

January 1, 1994 — January 1, 1996 — January 1, 1998 —

December 31, 1995 December 31, 1997 December 31, 2000

Late-ﬁling (or nonﬁling)

penalty

Late-payment penalty

(for unpaid tax shown

due on an original or

amended return)

5% of tax required to be shown due

on the return without regard to timely

payments made.

If the return is timely ﬁled but cannot

be processed, you will have 21 days

to correct the return before penalty

is due.

Exceptions

Motor Fuel Use Tax — 10% of the

tax or $50, whichever is greater.

Coin-Operated Amusement Device

Tax— 30% for failure to obtain a

decal.

15% of tax shown due on the return

or required to be shown due on the

return and not paid by the due date.

Note: If penalty for underpayment

of estimated or accelerated tax

payments 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 Device

Tax— 30% for failure to obtain a

decal.

Tier 1 — the lesser of $250 or 2%

of the tax required to be shown due

on the return without regard to 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

notice 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 Device

Tax— 30% for failure to obtain a

decal.

15% of tax shown due on the return

or required to be shown due on the

return and not paid by the due date.

Note: If penalty for underpayment

of estimated or accelerated tax

payments 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 Device

Tax— 30% for failure to obtain a

decal.

Tier 1 — the lesser of $250 or 2%

of the tax required to be shown due

on the return without regard to 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

notice 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 Device

Tax— 30% for failure to obtain a

decal.

20% of tax shown due on the return

or required to be shown due on the

return and not paid by the due date.

Note: If penalty for underpayment

of estimated or accelerated tax

payments 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 Device

Tax— 30% for failure to obtain a

decal.

Penalties and Interest for Illinois Taxes

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Penalty rates for returns due on or after:

January 1, 2001 — January 1, 2004 —

December 31, 2003 December 31, 2004

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 pay-

ments 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 notice 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 Device Tax— 30% for

failure to obtain a decal.

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 accel-

erated tax payments 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 Device Tax— 30% for

failure to obtain a decal.

Tier 1 — the lesser of $250 or 2% of the tax required to

be shown due on the return and reduced by timely pay-

ments 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 notice 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 Device Tax — 30% for

failure to obtain a decal.

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 accel-

erated tax payments 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 Device Tax— 30% for

failure to obtain a decal.

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Penalties and Interest for Illinois Taxes

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Penalty rates for returns due on or after:

January 1, 2005 —

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

notice 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 Device

Tax — 30% for failure to obtain a

decal.

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, However, the penalty is 15% of

any amount that is not paid until

after the initiation of an audit or

investigation of your liability and 20%

of any amount that is not paid within

30 days after the issuance of an

audit-prepared amended return or

Form IL-870, Waiver of Restrictions,

at the conclusion of the audit or

investigation. The 20% penalty rate

also applies to any amount paid

within the 30-day period if you fail to

sign and return the amended return

within that period or if you pay the

liability under protest or subsequently

ﬁle a claim or refund of the payment.

Note: If penalty for underpayment

of estimated or accelerated tax

payments 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 Device

Tax— 30% for failure to obtain a

decal.

Withholding Income Tax — Late

payment penalty is based upon the

payment due date, not the return due

date (effective January 1, 2008).

Penalties and Interest for Illinois Taxes

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Page 9 of 13

Late-payment penalty -

additional liability due

Late-payment penalty -

estimated or quarter-

monthly tax due

Penalty for failure

to ﬁle correct

information return

Penalty for negligence

Penalty for fraud

Penalty for

personal liability

Penalty for bad check

Cost of collection fee

Penalty for

frivolous return

Late-ﬁling (or nonﬁling)

penalty for transaction

return

15% of additional tax required to be

shown due on the return not paid

within 30 days of the date of a notice

and demand for payment or notice of

tax liability.

15% of any amount that is not timely

paid.

$5 for each return or statement not

timely ﬁled up to a total of $25,000

during any calendar year. If a return

is ﬁled within 60 days of the due

date, the penalty may be reduced by

50 percent.

20% of the deﬁciency attributable to

the negligent act or omission.

50% of the deﬁciency attributable to

the fraudulent act or omission.

An amount equal to the total amount

of unpaid tax, penalties, and interest.

Not applicable.

$500

Not applicable.

15% of additional tax required to be

shown due on the return not paid

within 30 days of the date of a notice

and demand for payment or notice of

tax liability.

20% of any amount that is not timely

paid.

$5 for each return or statement not

timely ﬁled up to a total of $25,000

during any calendar year. If a return

is ﬁled within 60 days of the due

date, the penalty may be reduced by

50 percent.

20% of the deﬁciency attributable to

the negligent act or omission.

50% of the deﬁciency attributable to

the fraudulent act or omission.

An amount equal to the total amount

of unpaid tax, penalties, and interest.

Not applicable.

$500

Not applicable.

20% of additional tax required to be

shown due on the return not paid

within 30 days of the date of a notice

and demand for payment or notice of

tax liability.

Penalty is based on the number of

days the payment is late.

1 - 30 days: 2%

31 - 90 days: 5%

91 - 180 days: 10%

181 + days: 15%

$5 for each return or statement not

timely ﬁled up to a total of $25,000

during any calendar year. If a return

is ﬁled within 60 days of the due

date, the penalty may be reduced by

50 percent.

20% of the deﬁciency attributable to

the negligent act or omission.

50% of the deﬁciency attributable to

the fraudulent act or omission.

An amount equal to the total amount

of unpaid tax, penalties, and interest.

$25 for each remittance not honored

by the ﬁnancial institution.

Returns due on or after

July 1, 2003 —

if the total unpaid amount is

• less than $1,000, penalty is $30

• $1,000 or more, penalty is

$100

$500

Not applicable.

Penalty rates for returns due on or after:

January 1, 1994 — January 1, 1998 — January 1, 2001 —

December 31, 1997 December 31, 2000 December 31, 2003

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Page 10 of 13

Late-payment penalty -

additional liability due

Late-payment penalty -

estimated or quarter-

monthly tax due

Penalty for failure

to ﬁle correct

information return

Penalty for negligence

Penalty for fraud

Penalty for

personal liability

Penalty for bad check

Cost of collection fee

Penalty for

frivolous return

Late-ﬁling (or nonﬁling)

penalty for transaction

return

Not applicable.

Penalty is based on the number of

days the payment is late.

1 - 30 days: 2%

31 - 90 days: 10%

91 - 180 days: 15%

181 + days: 20%

$5 for each return or statement not

timely ﬁled up to a total of $25,000

during any calendar year. If a return

is ﬁled within 60 days of the due

date, the penalty may be reduced by

50 percent.

20% of the deﬁciency attributable to

the negligent act or omission.

50% of the deﬁciency attributable to

the fraudulent act or omission.

An amount equal to the total amount

of unpaid tax, penalties, and interest.

$25 for each remittance not honored

by the ﬁnancial institution.

If the total unpaid amount is

• less than $1,000, penalty is $30

• $1,000 or more, penalty is $100

$500

Not applicable.

Penalty rates for returns due on or after:

January 1, 2004 — January 1, 2005 — August 16, 2013 —

December 31, 2004 August 15, 2013 to August 9, 2015

Not applicable.

Penalty is based on the number

of days the payment is late.

1 - 30 days: 2%

31 + days: 10%

$5 for each return or statement not

timely ﬁled up to a total of $25,000

during any calendar year. If a return

is ﬁled within 60 days of the due

date, the penalty may be reduced by

50 percent.

20% of the deﬁciency attributable to

the negligent act or omission.

50% of the deﬁciency attributable to

the fraudulent act or omission.

An amount equal to the total amount

of unpaid tax, penalties, and interest.

$25 for each remittance not honored

by the ﬁnancial institution.

If the total unpaid amount is

• less than $1,000, penalty is $30

• $1,000 or more, penalty is $100

$500

Not applicable.

Penalty is based on the number

of days the payment is late.

1 - 30 days: 2%

31 + days: 10%

$5 for each return or statement not

timely ﬁled up to a total of $25,000

during any calendar year. If a return

is ﬁled within 60 days of the due

date, the penalty may be reduced by

50 percent.

20% of the deﬁciency attributable to

the negligent act or omission.

50% of the deﬁciency attributable to

the fraudulent act or omission.

An amount equal to the total amount

of unpaid tax, penalties, and interest.

$25 for each remittance not honored

by the ﬁnancial institution.

If the total unpaid amount is

• less than $1,000, penalty is $30

• $1,000 or more, penalty is $100

$500

$100

Penalties and Interest for Illinois Taxes

PUB-103 (R-10/19, R-07/20 Back reformatted)

Page 11 of 13

Late-payment penalty -

additional liability due

Late-payment penalty -

estimated or quarter-

monthly tax due

Penalty for failure

to ﬁle correct

information return

Penalty for negligence

Penalty for fraud

Penalty for

personal liability

Penalty for bad check

Cost of collection fee

Penalty for

frivolous return

Late-ﬁling (or nonﬁling)

penalty for transaction

return

Not applicable.

Penalty is based on the number

of days the payment is late.

1 - 30 days: 2%

31 + days: 10%

$5 for each return or statement not

timely ﬁled up to a total of $25,000

during any calendar year. If a return

is ﬁled within 60 days of the due

date, the penalty may be reduced by

50 percent.

20% of the deﬁciency attributable to

the negligent act or omission.

50% of the deﬁciency attributable to

the fraudulent act or omission.

An amount equal to the total amount

of unpaid tax, penalties, and interest.

$25 for each remittance not honored

by the ﬁnancial institution.

If the total unpaid amount is

• less than $1,000, penalty is $30

• $1,000 or more, penalty is $100

$500

$100, when the return, if it had

been properly ﬁled, would not have

resulted in the imposition of a tax.

Note: If you owe this late-ﬁling (or

nonﬁling) penalty for a zero liability

transaction return, you are not

subject to the standard late-ﬁling (or

nonﬁling) penalty.

Penalty rates for returns due on or after:

August 10, 2015 —

to current

PUB-103 (R-10/19, R-06/22 back page updated)

Penalties and Interest for Illinois Taxes

Page 12 of 13

Penalties for Tax Avoidance Transactions

Participant Penalties

Failure to disclose participation in a reportable

transaction penalty

Reportable transaction understatement penalty

100 percent interest penalty

Material Advisor Penalties

Failure to register tax shelter penalty

Failure to maintain a list of investors penalty

Promoting tax shelters penalty

$15,000 for each undisclosed reportable transaction or $30,000

for each “listed transaction.” The total penalty imposed shall not

exceed 10% of the increase in net income or reduction in loss that

would result if the taxpayer had not participated in the reportable

transaction.

20% of deﬁciency or 30% if the transaction was not disclosed.

100% of interest assessed on the tax avoidance transaction

deﬁciency from payment due date through date a notice of deﬁciency

is issued.

$15,000 for each transaction or $100,000 for each unregistered

“listed transaction.”

$15,000 for each failure or $100,000 if the failure involves a “listed

transaction.”

The greater of $10,000 or 50% of the gross income received (or to be

received) from anyone required to ﬁle an Illinois return and to whom

you furnished a false statement.

Penalties and Interest for Illinois Taxes

PUB-103 (R-10/19, R-07/20 Back reformatted)

Page 13 of 13

Interest Rates

After December 31, 2013, interest accrues at the “underpayment rate,” regardless of when the underpayment arose.

During the period covering January 1, 2004, through December 31, 2013, interest accrued on on the “short term federal rate”

for the ﬁrst year. This is 3 percent less than the “underpayment rate.” After one year, interest would accrue on any remaining

balance at the “underpayment rate.”

Prior to January 1, 2004, interest accrued at the “underpayment rate.”

Interest rates are available on our website at tax.illinois.gov.

Abusive Tax Shelter —

If you are found to have participated in an abusive tax shelter transaction and did not report and pay any liability associated with that

transaction before you were contacted by the IRS or us, interest on that liability will be assessed at 150 percent of the rate in effect at that

time.

Printed by authority of the State of Illinois. Web only — one copy.

PUB-103 (R-10/19, R-06/22 back page updated)

Visit our website at tax.illinois.gov. For speciﬁc phone number and email contacts see our

Call us at 1 800 732-8866 or 217 782-3336.

Call our TDD (telecommunications device for the deaf) at 1 800 544-5304.

Write us at Illinois Department of Revenue, PO Box 19001, Springﬁeld, IL 62794-9001.

Call our 24-hour Forms Order Line at 1 800 356-6302.

Contact Information

15 Executive Drive

Business Center One, Suite 2

Fairview Heights, Illinois 62208-1331

200 South Wyman Street

Rockford, Illinois 61101-1237

Ofﬁce Locations

Suburban North Regional Building

9511 Harrison Street FA 203

Des Plaines, Illinois 60016-1563

555 West Monroe Street

Suite 1100

Chicago, Illinois 60661

Willard Ice Building

101 West Jefferson

Springﬁeld, Illinois 62702-5145

2309 W. Main, Suite 114

Marion, Illinois 62959-1196

Penalties and Interest for Illinois Taxes