Tax News Highlights

Upcoming State Amnesty Programs

June 25, 2015


Arizona

The Arizona tax amnesty program will run from Sept. 1, 2015, through Oct. 31, 2015. The amnesty applies to taxes administered by the Arizona Department of Revenue, except for luxury and withholding taxes. Taxpayers who are a party to any criminal investigation, administrative proceeding, or litigation pending as of Jan. 1, 2015, in any federal or Arizona court for failure to pay or for fraud with respect to any tax imposed by the Department of Revenue are ineligible for amnesty.

Amnesty is available for all periods during which tax was due and payable on or before Dec. 31, 2014, for annual filers, and on or before Feb. 1, 2015, for all other filers. Under the amnesty program, penalties and interest will be waived. Taxpayers participating in the program waive any right to protest or initiate judicial proceedings for assessments waived or abated.

To qualify, taxpayers must submit an application that identifies the tax, the qualifying taxable period, and the tax liability amount and attach any returns and reports, including amended returns and reports for the tax and taxable periods. Additional details will be provided on the state’s website.

Maryland

The Maryland tax amnesty program will run from Sept. 1, 2015, through Oct. 30, 2015. The amnesty includes income, withholding, sales and use, and admissions and amusement taxes. Those participating in the amnesty program will have all civil penalties and half of the interest waived. Taxpayers under audit are not excluded from the program. The program does not apply to taxpayers granted amnesty under a previous program held between calendar years 1999 and 2014. 

Amnesty is available for all periods during which tax was due and payable on or before Dec. 31, 2014. The Comptroller has discretion to decide whether an installment agreement may be made with the taxpayer for payments that will occur after the amnesty period is over but no later than Dec. 31, 2016. Additional details can be found on the state’s website.

Missouri

The Missouri tax amnesty program will run from Sept. 1, 2015, through Nov. 30, 2015. The program provides amnesty from the assessment or payment of all penalties, additions to tax, and interest with respect to unpaid taxes or taxes due and payable on or before Dec. 31, 2014. 

Taxpayers are required to file a written application, pay the balance in full by Nov. 30, 2015, and remain in compliance for the eight years following the date of the agreement. Taxpayers granted amnesty under the program are ineligible to participate in any future Missouri amnesty for the same type of tax. Additional details will be provided on the state’s website.

Indiana, Louisiana, and South Carolina also have upcoming amnesty programs, but the dates have not been announced.

It is important to note that amnesty programs are not the sole option for taxpayers seeking a reprieve from their tax bills or associated penalties. Voluntary disclosure programs exist in several states and might provide broader benefits than those offered under amnesty programs.

 

For More Information

Mike Hollowell
+1 574 236 8672 
michael.hollowell@crowehorwath.com
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Chris Hopkins
+1 212 572 5592 
chris.hopkins@crowehorwath.com
   LinkedIn Profile

Shawn Kane
+1 630 586 5250
shawn.kane@crowehorwath.com
   LinkedIn Profile


Authors
Michael Hollowell - 150
Michael A. Hollowell
Partner, Tax Services Leader, West Region
hopkins-christ-150
Chris J. Hopkins
Partner
Shawn Kane - 150
Shawn Kane
Partner, State and Local Tax Services Leader