Tax amnesty programs are limited duration programs where a state provides taxpayers with an opportunity to come clean and pay back taxes with interest and/or penalties reduced or waived.  These benefits are available for individuals, businesses or both depending on the particular program.  Amnesty programs are usually of benefit to both sides; they provide the taxpayer with a way to reduce their exposure to unpaid taxes and the taxing authority generates revenue it might not otherwise collect.

For the latter half of 2016 several states have enacted legislation to provide tax amnesty programs for several types of taxes (not all types of taxes are always covered).  Here are several of the programs planned for later this year:

State

Business Taxes Covered

Personal Taxes Covered

Other Taxes Covered

Duration

AL Most Most Some 6/30/16-8/30/16
CA Some Some Real Estate Ongoing Since 2013
CA Penalties & Interest 3 Months, not yet determined
GA Most Most Most 10/31/16-12/31/16
KS Most Most Most 60 Days, not yet determined
NC Sales & Withholding No Trust Ongoing Since 2014
SC Undetermined Undetermined Undetermined 3 Months, not yet determined
WA     Unclaimed Property 7/1/16-11/1/16

 

Each of these programs has specific caveats and exceptions for what qualifies and particular compliance rules for their application process.  Merely filing a tax return will rarely constitute compliance.

If you would like to know more about an upcoming tax amnesty program please feel free to contact us for a consultation.

Written by Damien Falato, CPA, MST, CGMA, Tax Director

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