Upcoming state tax amnesty programs present great opportunity.

• Author: Boucher, Karen J.

During the 2001 legislative sessions, Louisiana, Maryland and Ohio enacted limited tax amnesty programs. Such programs present a great opportunity for taxpayers to eliminate penalties and in some cases interest on past-due state tax liabilities, and for tax practitioners to assist clients in determining their prior tax liabilities and filing the required applications and returns within the program time frame.

The enacted amnesty programs vary in length of time, eligible taxpayers and the benefits that result from using the programs. While Louisiana and Maryland will offer amnesty programs of approximately two months, Ohio's program will run for three months. Louisiana will waive penalties and interest for eligible taxpayers applying within its amnesty program. Ohio's program provides for waiver of penalties and half of the interest, while Maryland's program only waives penalties.

Louisiana

Louisiana HB 992, which was signed into law as Act 136, allows a 60-day tax amnesty period between Sept. 1-Oct. 31, 2001.The program covers taxes imposed by reason of or pursuant to authorization by Louisiana law and collected by the Department of Revenue (DOR).

Amnesty will be granted to those taxpayers applying during the amnesty period, who have filed a tax return for each tax period for which amnesty is requested, complied with the terms and provisions of Act 136 and paid the entire amount due. Amnesty may be granted even for those taxpayers who have been previously notified by the DOR in writing of a failure to file a timely return or of existing tax liabilities for any tax period. In addition, amnesty may be granted even if a lien exists against the taxpayer's property; the DOR has initiated proceedings under an assessment and distraint procedure; or the DOR has entered into an installment agreement with the taxpayer.

Amnesty will not be granted:

* To taxpayers who are a party to any criminal investigation or to any civil or criminal litigation pending in court;

* For the tax period of any tax involved in an ongoing or unresolved review or examination of the taxpayer's return or books and records if the DOR has notified the taxpayer in writing of the review or examination prior to the application for amnesty; or

* If the taxpayer has paid under protest and filed suit.

For taxpayers that are granted amnesty, all interest and penalties on qualifying delinquent accounts will be waived. In addition, the DOR will not seek civil or criminal prosecution...