Don’t Overlook State Tax Amnesty Programs…
Heidi D. Ragland | January 12, 2022
As the holiday season fades and we embark on a new year, several states are still in the gift-giving mood—in the form of tax amnesty. What is tax amnesty? It is an opportunity for businesses and individuals to pay delinquent taxes in exchange for forgiveness (or reduction) of interest and penalties due. Current tax amnesty programs are being offered (or are pending) in the following states:
Article Continues Below
- Remote Employees?: It’s Time to Revisit Business Tax Nexus for Your Remote Employees
- Investments: Breaking Down the New Inflation
- Tax Bracket History: Highest U.S. Tax Bracket Varies Less than You Think
Subscribe to our quarterly State and Local Tax Newsletter
Connecticut’s tax amnesty program began November 1, 2021 and extends to January 31, 2022. The program provides a 75% reduction in interest and waives the penalty (and any possible criminal prosecution) related to unfiled, underreported, or existing tax liabilities for any tax period before or ending on December 31, 2020. Taxpayers seeking amnesty in the state of Connecticut can access program information at GetRightCT.com. Applications must be electronically filed, and payments must be made in full, by the January 31, 2022, deadline.
Tennessee only offers amnesty for sales and use tax. Under the amnesty program, current unregistered sellers who register through the Streamlined Sales and Use Tax Central Registration System may receive amnesty on any uncollected or unpaid sales and use taxes for periods prior to registration.
South Carolina has passed a bill that authorizes its Department of Revenue to create an amnesty period, during which penalties and interest, or a portion of both, will be waived for taxpayers who voluntarily file and pay all taxes owed. The dates for South Carolina’s amnesty period have not yet been announced but should be determined in the near future.
Meet Your Deadlines with Trusted REDW Advisors
These tax programs provide welcome relief; however, they are being offered for a limited time and contain specific criteria to participate. To discuss your business’ eligibility for a tax amnesty program, and for assistance in identifying your best tax-saving options, please contact the trusted advisors from the REDW State and Local Tax team. We welcome your questions.