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Amnesty Program Update for Oklahoma, Ohio, Virginia and Washington

August 01, 2017

Do you owe back taxes in Oklahoma, Ohio, Virginia or Washington?  If the answer is yes, you could benefit from participating in an amnesty program.

Amnesty programs are occasionally offered by states and generally provides a waiver of tax or reduced penalties. Read the information or reference the table below to learn more about the specifics of these states’ current amnesty programs.

Contact your Eide Bailly professional or a member of our state and local tax team with questions or for more information.

Oklahoma Amnesty Program

Oklahoma has enacted legislation that directs the Oklahoma Tax Commission to establish a voluntary compliance program. Eligible taxpayers must not have entered into an Oklahoma Voluntary Disclosure Agreement within the last three years. Eligible taxpayers include non-residents, part-year residents and out-of-state businesses. If the taxpayer voluntarily files returns and pays the taxes due during the compliance program period of Sept. 1 – Nov. 30, 2017, the taxpayer would be entitled to a waiver of penalty, interest and other collection fees due. The Oklahoma Tax Commission will limit the lookback period to three taxable years for annual filers or 36 months for non-annual filers.

Ohio Amnesty Program

Ohio has enacted legislation in 2017 to establish the amnesty program for taxes owed to the Department of Taxation. Individuals, businesses and other entities with Ohio tax delinquencies as of May 1, 2017, are generally eligible to participate. Qualifying delinquent taxes may include non-filed tax returns, unpaid, underreported or unestablished taxes. One-half of the interest may be waived in addition to penalties.  Filing and payment of amnesty program taxes and one-half of the interest is due between Jan. 1 and Feb. 15, 2018.      

Virginia Amnesty Program

Virginia has enacted legislation to establish the amnesty program for taxes owed to the Department of Taxation. Individuals, businesses and other entities with Virginia tax delinquencies are generally eligible to participate. Taxpayers that voluntarily participate in the program will be eligible to have all civil and criminal penalties waived as well as half of the interest. Future amnesty update to follow when the dates of the program are announced. 

Washington Unclaimed Property

Washington has enacted legislation that requires the department to waive all penalties and interest on unclaimed property amounts payable or property deliverable, when certain criteria is met. The waiver is only applicable to previously unreported unclaimed property that will be reported and delivered to the state by November 1, 2017. Unclaimed property that is reported late is subject to interest from the due date until paid and is not eligible for waiver. Also any unclaimed property audit assessments issued by the state are not eligible for waiver under this program.

 

State

Amnesty Filing Dates

Amnesty Inclusion Periods

Tax Types and Conditions

Amnesty Benefits

OK

Sept. 1 – Nov. 30, 2017

Annual Filers –

Limit lookback period tothree taxable years;

 

All Other Taxpayers –

Limit lookback period to 36 months

Includes individual income, corporate income, and sales and use taxes.

Other eligible taxes include personal withholding or payroll tax, gross production and petroleum excise tax.

Waiver of all penalties and interest.

OH

Jan. 1– Feb. 15, 2018

Any tax delinquencies as of May 1, 2017

Unfiled tax returns

Underreported and unpaid taxes

Most all tax types are eligible, including, but not limited to: Sales and use tax, income tax, financial institutions, commercial activity tax, and school district tax

 

Noted tax types not included: municipal or township lodging tax and resort area tax.

Waiver of all penalties and half of the interest.

VA

Dates to be Announced

 

Will be implemented before June 30, 2018

Guidelines are still being

developed

 

Tax liabilities due to nonpayment, underpayment, non-reporting or underreporting.

Waiver of all penalties and half of the interest.

WA

Unreported Periods

Unclaimed property that

has not been reported and delivered to the state.

Periods through

Nov. 1, 2017

Unclaimed property holders may get a waiver of penalty and interest for prior unreported periods if they report and pay outstanding unclaimed property prior to Nov. 1, 2017

May waive all penalties and interest