Tax Overview: Illinois
Illinois tax debts are handled by the Department of Revenue and can trigger liens, levies, and wage garnishments at 15% of gross wages with only 10 days' notice. The state offers an OIC through the Board of Appeals, but decisions are final with no appeal. A powerful strategy exists: filing a Board of Appeals petition allows requesting a Temporary Restraining Order that freezes all collection activity for years while the case is pending. Illinois uses private collection agencies including Linebarger Goggan Blair & Sampson.
Key Tax Facts
- OIC available via Form BOA-1 filed with the Board of Appeals — only considers 'uncertainty as to collectibility'
- Board of Appeals decisions are FINAL — no appeal available
- Installment agreements 12-24 months without financials
- Over 24 months or balances over $10K require full financials (Forms EG-13i or EG-13b & CPP-1) regardless of term
- Wage garnishments are 15% of gross wages with only 10 days' notice
- Garnishment reduction requires letter of hardship, last 3 pay stubs, completed EG-13i, and full compliance
- TRO Strategy: Filing a BOA petition allows requesting a Temporary Restraining Order that freezes ALL collection activity — cases take years, collections paused during that time
- Liens filed in public Tax Lien Registry (searchable online) and last 20 years
- Uses Linebarger Goggan Blair & Sampson (LGBS) as collection agency
- LGBS terms: 6-12 month IA without financials, extended plans require most current 1040 and last 2 pay stubs
Common Tax Issues
The 10-day garnishment notice window is one of the shortest nationally — rapid response is critical
Balances over $10K require full financials regardless of the requested payment plan length
BOA decisions are final with no appeal — the OIC application is essentially a one-shot opportunity
The TRO strategy is powerful but requires understanding the Board of Appeals process
Once a debt is with LGBS, a 1/3 down payment is recommended — lower DP requires a letter explaining desired terms
Resolution Options in Illinois
Payment Plans (Installment Agreements)
Without financials: Up to 24 months
With financials: Up to 36 months
12-24 months without financials. Over 24 months or over $10K requires financials (Forms EG-13i or EG-13b & CPP-1).
Offer in Compromise (OIC)
Available: Yes
Does NOT stop collections while pending
Form: Form BOA-1
Filed with Board of Appeals. Only considers 'uncertainty as to collectibility.' Decisions are FINAL — no appeal. Oral hearing available but not required.
Wage Garnishment
Rate: 15% of gross
Can lift with payment plan: No
Can reduce amount: Yes
Only 10-day notice before garnishment starts. Reduction requires: letter of hardship, last 3 pay stubs, completed EG-13i, and full compliance.
Penalty Abatement
Available: Yes
Via Board of Appeals (Form BOA-1). Sales tax penalties typically NOT eligible.
Bank Levy
Can release: No
Bank holds funds 20 days before remitting.
Recent Tax Changes
- Rate unchanged at 4.95%
- Increased enforcement on gig workers and online sellers
Official Resources
How Tax Advocate Group Helps Illinois Taxpayers
Whether you're dealing with the IRS, the Illinois Department of Revenue, or both — we provide comprehensive tax resolution services to Illinois residents and businesses.