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Sales & Use Tax Tips for January 2011
Some States Have Already Announced Amnesty Programs To Take Place In 2011
Would a state sales/use tax amnesty program benefit your company?
Many states are struggling financially and are constantly devising additional ways to increase revenue. One alternative method can be a benefit to both taxpayers and the government. It is called amnesty. Amnesty programs allow taxpayers who have past tax liabilities to come forward voluntarily and pay off their debts; in exchange the states generally waive penalties. Some states even reduce or waive interest.
Reduced paperwork requirements is another potential benefit. For example, a state may not require the taxpayer to file each return individually, but may allow submission of a spreadsheet of liabilities instead. Amnesty programs are generally limited to non-filing taxpayers or taxpayers who have not yet been identified by the state. Taxpayers who are currently under audit or have previously received a nexus questionnaire are often denied participation in such programs.
Don't wait too long to apply. Amnesty programs are generally only available for limited time periods, generally between a two month and six month period. Additionally, many state amnesty programs subsequently penalize taxpayers for not taking advantage of the amnesty. This can lead to additional penalties and interest. Some states have gone so far as doubling the amount of penalties and charging 50% more in interest.
Even if a state is not offering amnesty or your company does not qualify, there may still be ways your company can pay off its debt without paying penalties. See also Exposure Resolution.
To learn more about these or other services or should you have any other questions or require assistance please Contact us today. Or call 1-888-466-2829 to speak with an Olivier &
Associates Sales and Use Tax professional for a no-obligation consultation about your Sales & Use Tax issues.
Please click here for more Sales Tax Tips or visit our website at www.oatax.com for information. For additional insight on common sales tax concerns, please see the Did You Know? section of our website.
* This tip is intended to provide general information only and is not to be considered as a substitute for professional advice.
