The Illinois Secretary of State’s Department of Business Services has announced a new Franchise Tax and License Fee Amnesty Program. This limited-time program gives eligible corporations the opportunity to avoid penalties and interest on unpaid or underreported franchise taxes.
If your business is incorporated or authorized to do business in Illinois, you’ll want to review the details below.
✅ Who’s Eligible
- Illinois (domestic) corporations
- Foreign corporations authorized to transact business in Illinois
- Foreign corporations transacting business in Illinois without authority
Note: Corporations currently involved in litigation or investigation with the Department of Business Services are not eligible.
🚫 Who’s Not Eligible
Amnesty does not apply to corporations involved in any civil, administrative, or criminal investigation or litigation related to nonpayment, delinquency, or fraud in connection with Illinois franchise tax obligations.
📅 Program Timeline
- Amnesty period: October 1 – November 15, 2025
- Final submission deadline: Monday, November 17, 2025 (due to weekend extension)
- Correction window: 30 days to fix and resubmit if your application is rejected (one-time extension)
💸 Tax Relief Includes
Cancellation of penalties and interest on:
- Unreported increases to paid-in capital
- Annual franchise tax
- Increases under Sections 14.30 or 14.35 (for mergers or issued shares)
- Initial franchise tax
Note: All franchise taxes and filing fees must still be paid. Amnesty applies only to penalties and interest.
📝 How to Apply
- Complete Form C 373 (Franchise Tax and License Fee Amnesty Petition – effective July 1, 2025).
- Attach required documentation (e.g., 14.30 forms for 2023 and 2024 with applicable fees and taxes).
- Submit your documents:
- In person at an Illinois Business Services location (Chicago, Springfield, or DMV+ sites), or
- By mail or courier (FedEx/UPS recommended)
⚠️ Why This Matters
If your corporation owes franchise tax or has unreported changes in paid-in capital, this program is a valuable opportunity to get compliant without added penalties or interest.
Now’s the time to review your filings and determine whether you qualify.
This article is intended to serve as a general summary of the issues outlined therein. While this article may include general guidance, it is not intended as, nor is a substitute for, qualified legal advice. Your review or receipt of this article by Lexern Law Offices, Ltd. (the “LLG”) or any of its attorneys does not create an attorney-client relationship between you and the LLG. The opinions expressed in this article are those of the authors of the article and do not reflect the opinion of the LLG. Please note that this article may have been generated using AI technology.