Starting this autumn, nine states are instituting tax amnesty programmes for reporting unpaid taxes. Taxand USA discusses this further.
States view this as an opportunity to increase tax collections without the political perils of changing tax laws. While tax amnesties are not new, there are an inordinately high number of amnesty programs in 2015. Taking advantage of an amnesty programme is helpful when a company has a known tax liability related to a prior period.
Amnesty opportunities materialise quickly, and the programmes are typically open for a relatively short amount of time. Departments of revenue may not advertise amnesty programmes sufficiently because of the short time period between the enactment of the law and the amnesty program window.
Discover more: State tax amnesty season
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Make sure you understand all of the procedures required by an amnesty programme prior to beginning the process. You typically cannot negotiate more favorable terms under an amnesty programme. Pay close attention to the types of taxes included in the amnesty programme, as all tax types may not be covered. Make sure that your federal tax returns reflect any changes amnesty may trigger in your state income tax returns.
