Tax Amnesty Period Set to Begin September 1

A “Tax Amnesty” period is set to begin on September 1 for individuals and corporations who owe back taxes.  Those who come forward during the amnesty period, September 1 through October 30, 2015, would not be required to pay penalties and one-half of the interest due on taxes attributable to the nonpayment, nonreporting, or underreporting of income taxes, withholding taxes, sales and use taxes, or admissions and amusement taxes that are paid during the amnesty period.

As reported by the Daily Record (subscription required), the state is expected to bring in an estimated $11.4 million in fiscal year 2016 from the program. According to the fiscal note that accompanied the legislation that passed during the 2015 session authorizing the program, local governments will receive an estimated $3.2 million in revenue.

The state last offered a tax amnesty program in 2009, which brought in $38.9 million. The 2001 program brought in $39.4 million, and the first program, in 1987, brought in $34.6 million.