“Tax amnesty: Righting tax wrongs”

Posted on 09.07.17

“Tax amnesty: Righting tax wrongs”

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 TaxReturns due June 15, 2017 and prior
Bank Franchise TaxTaxable Year 2016 and prior
Business Consumer's Use TaxMonth of April 2017 and prior
Communications Sales and Use TaxMonth of April 2017 and prior
Corporate Income TaxTaxable Year 2015 and prior
Direct Payment Permit sales and Use TaxMonth of April 2017 and prior
Employer Income Tax WithholdingMonth of April 2017 and prior
Estate TaxReturns due by March 30, 2008 and prior
Fiduciary Income TaxTaxable Year 2015 and prior
Individual Consumer's Use TaxReturns due by May 1, 2017 and prior
Individual Income TaxTaxable Yar 2015 and prior
Inheritance TaxRemainder interests that come into possession before September 15, 2016
Insurance Premiums License TaxTaxable Years 2013 through 2016
Litter TaxTaxable Year 2016 and prior
Motor Vehicle Rental Tax and FeeMonth of April 2017 and prior
Pass-Through Entity Information ReturnTaxable Year 2015 and prior
Recordation TaxFilings due by June 15, 2017 and prior
Retail Sales and Use TaxMonth of April 2017 and prior
Out-of-State Dealer's Use TaxMonth of April 2017 and prior
Watercraft Sales TaxMonth of April 2017 and prior
Watercraft Consumer Use TaxReturns 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:

  1. Bills and accounts paid before September 13, 2017;
  2. Federal and local tax assessments;
  3. Bills with an assessment date after June 15, 2017, with certain exceptions;
  4. 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;
  5. All obligations of a taxpayer with an active jeopardy or fraud assessment; and
  6. 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.

Please reach out to Keiter’s State and Local Tax Group or your Keiter advisor with questions or for more information: 804.747.0000 | Contact us


The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.

Posted by: Terry Barrett, CPA

Terry Barrett specializes in state and local tax concerns for her clients. She has over 30 years of experience working in the public and private accounting sector. She is a graduate of Virginia Commonwealth University. You can read more of Terry’s state and local tax insights here.

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