“Tax amnesty: Righting tax wrongs”
Posted on 09.07.17
Virginia Tax Amnesty Starting Soon!
The Virginia Department of Taxation has announced the dates of its tax amnesty program – September 13, 2017 through November 14, 2017. Generally, taxpayers will be entitled to waiver of penalties and one-half the interest for amnesty-eligible liabilities paid during this period.
Terry Barrett, Keiter Senior Tax Manager, recently wrote an article published in Virginia Society of CPAs' Disclosures Magazine which summarizes most of the amnesty provisions – the article was based on draft guidelines for the program and little has changed in the release of the final guidelines.
Taxes and eligible periods for amnesty:
Periods Eligible for Amnesty
|Aircraft Sales and Use Tax (Dealers)||Month of April 2017 and prior|
|Aircraft Consumer Use Tax||Returns due June 15, 2017 and prior|
|Bank Franchise Tax||Taxable Year 2016 and prior|
|Business Consumer's Use Tax||Month of April 2017 and prior|
|Communications Sales and Use Tax||Month of April 2017 and prior|
|Corporate Income Tax||Taxable Year 2015 and prior|
|Direct Payment Permit sales and Use Tax||Month of April 2017 and prior|
|Employer Income Tax Withholding||Month of April 2017 and prior|
|Estate Tax||Returns due by March 30, 2008 and prior|
|Fiduciary Income Tax||Taxable Year 2015 and prior|
|Individual Consumer's Use Tax||Returns due by May 1, 2017 and prior|
|Individual Income Tax||Taxable Yar 2015 and prior|
|Inheritance Tax||Remainder interests that come into possession before September 15, 2016|
|Insurance Premiums License Tax||Taxable Years 2013 through 2016|
|Litter Tax||Taxable Year 2016 and prior|
|Motor Vehicle Rental Tax and Fee||Month of April 2017 and prior|
|Pass-Through Entity Information Return||Taxable Year 2015 and prior|
|Recordation Tax||Filings due by June 15, 2017 and prior|
|Retail Sales and Use Tax||Month of April 2017 and prior|
|Out-of-State Dealer's Use Tax||Month of April 2017 and prior|
|Watercraft Sales Tax||Month of April 2017 and prior|
|Watercraft Consumer Use Tax||Returns due by June 15, 2017 and prior|
*The table above does not include all taxes that are eligible. For the complete list, refer to the guidelines on Virginia.gov.
The final guidelines also explain that the following are not eligible for amnesty:
- Bills and accounts paid before September 13, 2017;
- Federal and local tax assessments;
- Bills with an assessment date after June 15, 2017, with certain exceptions;
- All obligations of a taxpayer under criminal investigation or prosecution for filing a fraudulent return or failing to file a return with the intent to evade the tax;
- All obligations of a taxpayer with an active jeopardy or fraud assessment; and
- Any tax liability attributable to an issue that is the subject of a decision of a Virginia court rendered on or after January 1, 2016.
One of the key facts to remember is that no applications for amnesty are required to be filed but taxpayers must file all tax returns and related documentation, the same as they would have if the returns were timely filed. Payment of any tax due must accompany the return.
Now is a great time to think about Virginia taxes – known liabilities as well as potential unknown liabilities (e.g., use tax as explained in the Disclosures article). Another Virginia amnesty program may not be offered for another several years, if then.