Amnesties Across America

October 5, 2015

Did you know Indiana isn’t the only state currently conducting a tax amnesty program?

Arizona, Kansas, Maryland, Missouri, and Oklahoma all launched tax amnesty programs in September. While specific details vary for each program, tax amnesties generally offer taxpayers a limited-time opportunity to catch up on past-due taxes without paying penalty or interest charges.

First, let’s take a look at the basics of Indiana’s Tax Amnesty 2015.

Indiana’s Tax Amnesty 2015

From September 15 through November 16, 2015, Indiana is offering Tax Amnesty 2015, an opportunity for individual and business taxpayers to pay past-due taxes for periods ending prior to January 1, 2013 without penalty, interest, or collection fees. All tax types managed by the Indiana Department of Revenue are included in the program, including individual income tax, corporate income tax, and sales tax. Taxpayers also may be eligible to have tax warrants expunged from their record.

More than $545 million is eligible for collection through Tax Amnesty 2015. Of the past-due taxes collected, the first $84 million will be allocated to the Indiana Economic Development Corporation to fund the Indiana Regional Cities Initiative. Up to the next $6 million will be allocated to the Indiana Department of Transportation to support operation of the Hoosier State Rail Line. Any additional funds collected will be deposited in the state general fund.

Tax Amnesty 2015 is Indiana’s second tax amnesty program. The program is authorized by the biennial budget in House Enrolled Act 1001, signed into law by Governor Mike Pence in May 2015.

Keep reading to see how other states’ amnesty programs compare.

Arizona

From September 1 through October 31, 2015, Arizona is offering Tax Recovery, an opportunity for Arizona taxpayers to pay back taxes without penalty, interest, or criminal prosecution. Tax types included in the program include individual income tax, corporate income tax, transaction privilege (sales), and use tax.

Kansas

From September 1 through October 15, 2015, Kansas is offering an amnesty program for tax periods ending on or before December 31, 2013. Tax types included in the program include individual, corporate, and fiduciary income tax, privilege tax, estate tax, withholding and estimated tax, sales tax (state and local), compensating use tax (sales and local), liquor enforcement tax, liquor drink tax, cigarette and tobacco products tax, and mineral severance tax.

Maryland

From September 1 through October 30, 2015, Maryland is conducting the 2015 Tax Amnesty Program. The program waives all civil penalties (except for previously assessed fraud penalties) and 50 percent of the interest for delinquent taxpayers who apply and are approved. Tax types included in the program include personal income tax, fiduciary income tax, pass-through entity nonresident income tax, corporate income tax, employer withholding tax, sales and use tax, and admissions and amusement tax. Taxpayers who participated in Maryland’s 2001 or 2009 amnesty programs are not eligible to participate in the 2015 Tax Amnesty Program.

Missouri

From September 1 through November 30, 2015, Missouri is conducting a tax amnesty program. Taxpayers with qualifying delinquencies can pay the amount of tax due in full without additional penalties and interest. Eligible tax types include consumer’s use tax, corporation franchise tax, corporation income tax, employer withholding tax, fiduciary tax, individual income tax, sales tax, and vendor’s use tax.

Oklahoma

From September 14 through November 13, 2015, Oklahoma is offering the Oklahoma Voluntary Compliance Initiative, which covers tax periods ending on or before December 31, 2014. Qualifying tax types include mixed beverage tax, gasoline and diesel tax, gross production and petroleum excise tax, sales and use tax, income tax, withholding tax, and privilege tax.