Tax Amnesty Program

Recently many states have offered tax amnesty programs to encourage taxpayers to voluntarily file past due returns and pay the taxes due on those returns.  This is a great opportunity for taxpayers to become compliant because interest and penalties are either reduced or waived.  In many instances, the interest and penalties can be so high that they exceed the actual tax due.

The Delaware legislature just passed a bill which creates this sort of program.   It applies to taxpayers that did not file a return or pay taxes that were due for periods prior to January 1, 2009.  Taxpayers must voluntarily file the tax return between September 1, 2009 and October 30, 2009 and pay the outstanding tax or enter into payment plans to pay the outstanding tax prior to June 30, 2010.  If a taxpayer complies with these rules then the State will be authorized to waive penalties, interest and other fees assessed on the outstanding taxes, and the state shall not assess any tax, interest or penalty for any voluntary tax return reporting tax under the initiative for periods before January 1, 2004.

Maryland is also offering amnesty during the same period but the details of the program are not the same.  Pennsylvania is also proposing their own tax amnesty but nothing has passed the legislature.

For more information, please contact:
Marie Holliday CPA,

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