Insights: Article

Current State Tax Amnesty Programs

November 29, 2018

Do you owe tax in Connecticut, Indiana, New Jersey or New Mexico? If so, you should consider participating in an available amnesty program. Amnesty programs are occasionally offered by states and generally offer reduced or waived penalties and other reductions.

Please review the chart below and contact your Eide Bailly professional or a member of our state and local tax team to determine if you are eligible and to discuss if the amnesty program is right for you.

 

State Amnesty Filing Dates Amnesty Inclusion Periods Tax Types and Conditions Amnesty Benefits
CT October 31, 2017 – November 30, 2018 Tax returns due on or before December 31, 2016 with limited three year look back Most all tax types for individuals and businesses are included in the Fresh Start program Excludes Connecticut payroll taxes, Secretary of State fees, and local property taxes Waiver of all penalties and half of the interest.
IN Currently – December 31, 2018 Look-back is limited to one calendar year (2017) plus current period for sales/use tax; Calendar or fiscal year 2017 for income tax Online Sellers Voluntary Disclosure Initiative is being offered to out-of-state retailers with inventory located in third-party IN warehouses and sell to IN customers. Applies to sales and use tax and income tax. Waiver of typical look-back period and penalties.
NJ November 15, 2018 – January 15, 2019 Any tax delinquencies for periods due on or after February 1, 2009 through September 1, 2017. Delinquent taxpayers who have New Jersey tax liabilities due to nonpayment, underpayment, nonreporting, or underreporting may qualify. Taxpayers who are currently under audit or who have an established tax liability will not qualify. If a qualifying taxpayer does not participate, an additional 5% penalty will be assessed. Waiver of penalty, referral cost recovery fees, or cost of collection fees and half interest.
NM Currently – December 31, 2018 All tax periods. This program is for personal income and gross receipts tax. This program does not encompass corporate income tax. All tax periods qualify under this program except those periods that are under audit, in legal dispute with the Department regarding the taxability of a taxpayer’s transactions, or that have been investigated for criminal activities. However, tax periods outside of these limitations are eligible for this program. Furthermore, tax liabilities that have been previously assessed do not qualify for this program. Waiver of all penalties and interest.

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