Press Room: Tax Release

June 12, 2013

Upcoming State and Local Tax Amnesty Programs - 2013

Due to the recession and budget issues, many states are turning to amnesty programs to generate additional revenues. Amnesty programs give those who owe back taxes a chance to pay off their debt without all the interest and penalties. States offer temporary interest and penalty waivers to encourage delinquent taxpayers to come forward. Below are the highlights of the upcoming state amnesty programs. Please follow the links to the specific state and local releases for additional detail.

Arkansas

  • The amnesty period is from September 1, 2013 through December 31, 2013.
  • Qualified taxes under the amnesty program are limited to franchise taxes.
  • With the completed application and payment of delinquent taxes, the state will waive penalties and interest owed on the delinquent tax debts.
  • For more information please click here.

Connecticut

  • The amnesty period will be from September 16, 2013 to November 15, 2013.
  • Included in the amnesty are all taxes imposed by the state (with the exception of the motor carrier road tax imposed on licensees) for any period ending on or before November 30, 2013.
  • The taxpayer would receive abatement of all civil penalties and criminal prosecution and a partial abatement interest if paid by the due date.
  • For more information please click here.

Delaware

  • Apply for DE VDA by June 30, 2013 and pay or enter into payment plan by June 30, 2015 and the look back period starts with 1996.
  • Apply for DE VDA after June 30, 2013 and by June 30, 2014 and pay or enter into payment plan by June 30, 2015 (the look back period starts with 1993).
  • Participants in Delaware’s unclaimed property VDA can limit the look back for reporting historical liabilities.  As such, a company can substantially reduce its exposure to very significant penalties and interest charges by filing under this program.
  • For more information please click here.

Iowa

  • The unclaimed property tax amnesty program enrollment period ends November 1, 2013.
  • In exchange for participation, all interest and penalties will be waived.
  • For more information please click here.

WTAS professionals can assist taxpayers in many ways during the amnesty period including, but not limited to, preparing the relevant amnesty applications, quantifying exposures, preparing tax returns and in some cases, attempting to settle issues directly with the respective states.