Sales Tax
SALT News – State Tax Amnesty Programs
Many states use tax amnesty programs as a way of bringing in additional revenue and, more importantly, get some former taxpayers back on active tax payment duty.
Mar. 13, 2015
Many states use tax amnesty programs as a way of bringing in additional revenue and, more importantly, get some former taxpayers back on active tax payment duty.
In Massachusetts, the governor has proposed an amnesty program slated to bring in $100 million. This program is for taxpayers of all tax types who have not previously filed in Massachusetts (non-registrants), plus taxpayers known to Department of Revenue (DOR) who have not filed and have not yet been assessed by the DOR for failing to file. If approved, the program will run for the entire year of 2016.
In addition, Massachusetts has enacted an amnesty program specifically for corporate excise taxpayers. Amnesty participants will be granted relief from penalties associated with late payments. All payments will be required to be made in full by June 30, 2015. The penalty waiver applies to taxpayers who have either an unpaid self-assessed liability or who have an unpaid tax liability resulting from an assessment either before or after the filing of a return.
This is good news for taxpayers who want to get back in good stead with the state and bring their late tax liabilities up-to-date.
North Carolina is still offering its Trust Tax Recovery Program which was launched in 2014. Under the terms of this program, businesses have the opportunity to pay any unpaid or non-filed based on a predetermined installment agreement. Once the tax and interest has been paid in full, penalties and collection fees will be waived. Taxes covered in this program include employee income tax withholding, sales and use tax, motor vehicle lease and rental tax, scrap tire disposal tax, and white goods disposal tax.
California withholding agents are eligible to participate in the Withholding Voluntary Compliance Program (WVCP), a voluntary program which entitles withholders to remit past-due nonwage withholding for the previous two years, plus interest, in exchange for a penalty waiver.
Nine states and Puerto Rico offered various tax amnesty programs during 2014.
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