The Illinois Department of Revenue (IDOR) is more difficult to deal with than the IRS.  While the state tax rate is currently much lower than federal, Illinois uses more aggressive collection tactics.  Illinois has also begun farming out collections to private collection agencies, who tack on a 25-30% collection fee, and aggressively pursue taxpayers with the additional motivation of self-interest.   

Despite the difficulty, Tom Ryder has over fourteen years’ experience negotiating with IDOR and has achieved many spectacular results.  Just like the IRS, Illinois also has a lot of wonderful employees, who can be pleasant.  But taxpayers should not expect the same degree of leniency and attitude of “let bygones be bygones” oftentimes experienced with the IRS.  While the IRS is interested in giving taxpayers a fresh start and opportunity to get right next time, Illinois wants to get paid, pure and simple.

For example, a taxpayer might have individual income taxes discharged in bankruptcy.  While the IRS oftentimes releases their tax lien, Illinois oftentimes does not; but rather claims that their lien attaches to the taxpayer’s exempt assets.  Thus, Illinois oftentimes gets paid, even if the underlying taxes were discharged in bankruptcy.  Normal taxpayers will eventually want to resume their lives and purchase a house or something, which requires release of Illinois’ lien.  There are countless other examples; the bottom line is that Illinois negotiation tends to be more difficult than dealing with the IRS.