Beware of the State Tax Amnesty Rules

Cash-strapped state governments are offeringunder such an arrangement and liens and levies are
amnesty plans to encourage delinquent taxpayers tonot sought.
bring their tax debt up to date.If you are interested in participating in such a program,
These states are willing to reduce or eliminate somecontact your state’s department of Revenue and
tax penalties in order to get more funds into the stateinquire about any tax amnesty offers.  Be sure you
treasury.  This is a two-way win for states low onknow which taxes are included in the program,
funds.  First of all, when an amnesty offer works andbecause some are generally left out.  For example,
brings delinquent taxpayers forward to settle their debtthe amnesty program in Arizona applies to individual
with the state, the state receives a much-neededand corporate income taxes, use taxes, sales taxes,
infusion of money.  Secondly, the state does not havepartnership taxes, withholding taxes, luxury and
to go through the expense and time it takes to trackfiduciary taxes.  The program in Connecticut includes
these taxpayers down and prosecute them for theirmost of these plus trust and estate income taxes, gift
refusal to pony up the dough.taxes, and attorney occupational taxes.
Arizona, Wisconsin, Connecticut, and New Jersey areIf your state is not offering amnesty, you might still
among the states currently offering tax amnesty. have options.  Perhaps, the fines, penalties, and
The process has caught on in some large metropolitaninterest are negotiable if you kick up the taxes due in
cities such as Tucson and Los Angeles, where manyfull.  Just be careful because the state and federal
taxpayers are deficient with their city taxesgovernments often share income tax information.  If
Every government, whether it’s state or city, hasyour situation with your state taxes is going to cause
its own program with its own rules, but the outline isyou trouble with the Internal Revenue Service, your
the same.  The government offers an amnesty onanswer may be to hire a tax resolution team to help
some part or the entire tax penalty to delinquentyou get straight with all concerned parties.  Whether it
taxpayers who are willing to step forward, within ais the state, the federal govern, or both, living as a tax
prescribed time period, and pay off their tax debt. dodge will eventually catch up with you.
Any prosecution of the taxpayer is usually dropped