Illinois Supreme Court – Amnesty double interest penalty upheld on tax liability assessed following an IRS audit

June 2013


On June 20, 2013, the Illinois Supreme Court ruled in a 4-2 decision that a taxpayer failing to pay a tax liability under the state’s 2003 amnesty program was subject to a 200% interest penalty even though the tax liability arose following the completion of a federal audit that concluded after the end of the amnesty reporting period. The court also found that the double interest penalty did not violate the taxpayer’s due process rights. [Metropolitan Life Insurance Company v. Hamer, Il. Sup. Ct. # 114243 (6/20/13)]

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