The following list identifies the eight states offering an amnesty program in 2015, the amnesty period duration and the percentage of penalties and interest that would be waived:
1. Arizona: 9/1/2015 – 10/31/2015 (100% penalty/100% interest)
2. Indiana: 9/1/2015 – 11/16/2015 (100% penalty/100% interest)
3. Kansas: 9/1/2015 – 10/15/2015 (100% penalty/100% interest)
4. Louisiana: To be determined but before the end of 2015 (33% penalty/17% interest)
5. Maryland: 9/1/2015 – 10/30/2015 (100% penalty/50% interest)
6. Missouri: 9/1/2015 – 11/30/2015 (100% penalty/100% interest)
7. Oklahoma: 9/14/2015 – 11/13/2015 (100% penalty/100% interest)
8. South Carolina: TBD
Taxpayers should be careful before moving forward with an amnesty request. On one hand, these programs generally only last for a few months so it is important to act quickly. Some states will even impose greater penalties on taxpayers who fail to take advantage of their amnesty program. On the other hand, states typically require full payment of any amount due, so taxpayers should consider whether they can afford to make such potential payments (some states offer installment payment plans). Similar relief may be available under a voluntary disclosure agreement, minimizing the benefit of an amnesty program.
Under the right circumstances, amnesty programs offer great benefits to taxpayers who have not previously been in proper compliance. Please contact Jon Wellington at LGT for more details at (214) 461-1430 or firstname.lastname@example.org.
Seek the services of a legal or tax adviser before implementing any ideas contained in this blog. To reach a financial advisor at Lane Gorman Trubitt PLLC, call (214) 871.7500 or email email@example.com.