Amnesties Across America - Part 2

June 8, 2016

En Español

As discussed in our Amnesties Across America blog post earlier this year, Indiana was one of many states to conduct a tax amnesty program in fall 2015. In fact, Arizona, Kansas, Maryland, Missouri, and Oklahoma all launched tax amnesty programs around the same time. Let’s take a look at the outcomes of each of these tax amnesty programs.

Arizona

According to the 2015 Tax Recovery Program Report, Arizona’s 2015 Tax Recovery Program collected more than $55 million in outstanding taxes, representing more than 2,000 participating Arizona taxpayers. Individual income tax, corporate income tax, transaction privilege (sales), and use tax all were included in the program.

Kansas

Kansas’s tax amnesty program collected $23 million last year, falling short of lawmakers’ $30 million expectation according to The Topeka Capital-Journal. The Kansas tax amnesty program ran from September 1 through October 15, 2015.

Maryland

Maryland conducted the 2015 Tax Amnesty Program from September 1 through October 30, 2015. The program waived all civil penalties (except for previously assessed fraud penalties) and 50 percent of the interest for delinquent taxpayers who applied and were approved. Maryland previously conducted amnesty programs in 2001 and 2009. Final results are not publically available.

Missouri

Missouri conducted a tax amnesty program from September 1 through November 30, 2015. According to centralmoinfo.com, the program brought in about $35 million, falling short of the $40 million projection. Budget drafters planned on $40 million to expand dental care and increase how much Medicaid pays health care providers.

Oklahoma

Oklahoma’s voluntary compliance initiative, PAYRight OK was conducted from September 14, 2015 through November 13, 2015. According to the PAYRight OK final report, the Oklahoma Tax Commission estimated total collections to be as high as $153.6 million. More information about Oklahoma’s program can be found here.

Indiana

Last, but not least - Indiana! How does Tax Amnesty 2015 compare to other states’ tax amnesty programs? From September 15 through November 16, 2015, the department offered Tax Amnesty 2015, a limited-time opportunity for individual and business taxpayers to pay past-due taxes, from periods ending prior to January 1, 2013, without penalty, interest, or collection fees. The department collected $180.2 million in cash payments as of May 25, 2016, with an additional $7.8 million commitment via payment plans. Tax Amnesty 2015 payment plans must be satisfied by June 15, 2016. Stay tuned for the Tax Amnesty 2015 Final Report.