Massachusetts has enacted an amnesty program also. It's good for periods before January 2007. It only waives the penalty, but no interest. It expires June 30, 2009.
Here's the details from CCH:
Massachusetts Governor Deval Patrick has signed legislation authorizing a two-month tax amnesty program, during which penalties for failure to timely file or pay Massachusetts taxes will be waived if the taxpayer files all outstanding returns and pays, or at the Commissioner's discretion provides security for, all tax and interest due. The amnesty period will begin on a date to be determined by the Department of Revenue and will end no later than June 30, 2009. The amnesty program will not apply to any tax liability for a period that commenced on or after January 1, 2007. Also excluded are penalties that the Commissioner does not have the sole authority to waive, including penalties applicable to fuel taxes administered under the International Fuel Tax Agreement and local option portions of taxes collected for the benefit of cities, towns, or state governmental authorities. Any taxpayer who has been the subject of a tax-related criminal investigation or prosecution is not eligible for amnesty. Taxpayers who have delayed payment due to a pending abatement application or appeal must waive the right to delay payment, and pay all assessed tax and interest, in order to participate in the amnesty program. Payment of tax and interest will not affect the taxpayer's appeal rights.
Wednesday, May 27, 2009
WI is Hoping to Be Part of the SSTP -- Amnesty may be Available
Since WI has conformed its laws to the SSTP, then it should be admitted as a full member of the Agreement. Once that happens, then amnesty will be available for a one year period. The SSTP amnesty is pretty great because companies are not only forgiven penalty and interest but the tax also. However, the downside is significant. You also have to register with all SSTP states and those in the Agreement for over a year offer no amnesty at all.
Here's the details according to CCH: Wisconsin Gov. Jim Doyle has signed a budget repair and economic stimulus bill that enacts provisions conforming Wisconsin sales and use tax laws to the Streamlined Sales and Use Tax (SST) Agreement.
SST Conformity
Wisconsin sales and use tax laws are conformed to the SST Agreement, effective October 1, 2009. With the enactment of this legislation, the state may petition to become a full member of the Agreement. The state must be found in compliance with the Agreement by the SST Governing Board before it can become a full member of the Agreement.
Amnesty: A seller is not liable for uncollected and unpaid state and local sales and use taxes, penalties, and interest on previous sales made to Wisconsin purchasers if the seller registers with the Department of Revenue to collect and remit taxes on such sales in accordance with the SST Agreement. In order to receive amnesty, the seller must:
-- register within one year of the effective date of the state's participation in the Agreement; and
-- collect and remit state and local taxes on sales to purchasers in Wisconsin for at least three consecutive years after the date the seller registers.
Amnesty is not available to sellers that were already registered with the Department during the year immediately preceding the effective date of Wisconsin's participation in the Agreement; sellers that are being audited by the Department; or sellers that have committed or been involved in fraud or an intentional misrepresentation of a material fact.
Here's the details according to CCH: Wisconsin Gov. Jim Doyle has signed a budget repair and economic stimulus bill that enacts provisions conforming Wisconsin sales and use tax laws to the Streamlined Sales and Use Tax (SST) Agreement.
SST Conformity
Wisconsin sales and use tax laws are conformed to the SST Agreement, effective October 1, 2009. With the enactment of this legislation, the state may petition to become a full member of the Agreement. The state must be found in compliance with the Agreement by the SST Governing Board before it can become a full member of the Agreement.
Amnesty: A seller is not liable for uncollected and unpaid state and local sales and use taxes, penalties, and interest on previous sales made to Wisconsin purchasers if the seller registers with the Department of Revenue to collect and remit taxes on such sales in accordance with the SST Agreement. In order to receive amnesty, the seller must:
-- register within one year of the effective date of the state's participation in the Agreement; and
-- collect and remit state and local taxes on sales to purchasers in Wisconsin for at least three consecutive years after the date the seller registers.
Amnesty is not available to sellers that were already registered with the Department during the year immediately preceding the effective date of Wisconsin's participation in the Agreement; sellers that are being audited by the Department; or sellers that have committed or been involved in fraud or an intentional misrepresentation of a material fact.
MD has an Amnesty Program With Catches
If you have fewer than 500 employees and you didn't take advantage of Maryland's last amnesty offer back in 2001, then you might want to participate in this program.
It doesn't start til September 1, 2009 but everything must be done by October 30, 2009. Here's the details from CCH:
Maryland Gov. Martin O'Malley has signed legislation that provides an amnesty period from September 1 through October 30, 2009, for taxpayers who failed to file a return or pay personal income, corporate income, withholding, sales and use, or admissions and amusement taxes. The comptroller will waive civil penalties (except previously assessed fraud penalties) and half the interest due if a taxpayer files all delinquent returns and pays all tax and half the interest due, or enters into an agreement with the comptroller, during the amnesty period. Amnesty is not available to taxpayers who have more than 500 U.S. employees, who participated in the 2001 Maryland amnesty program, or who were eligible for the 2004 Delaware holding company settlement period. Taxpayers cannot be charged with a criminal tax offense arising out of any return filed or tax paid during the amnesty period, but amnesty does not apply to criminal charges that are already pending or under investigation.
It doesn't start til September 1, 2009 but everything must be done by October 30, 2009. Here's the details from CCH:
Maryland Gov. Martin O'Malley has signed legislation that provides an amnesty period from September 1 through October 30, 2009, for taxpayers who failed to file a return or pay personal income, corporate income, withholding, sales and use, or admissions and amusement taxes. The comptroller will waive civil penalties (except previously assessed fraud penalties) and half the interest due if a taxpayer files all delinquent returns and pays all tax and half the interest due, or enters into an agreement with the comptroller, during the amnesty period. Amnesty is not available to taxpayers who have more than 500 U.S. employees, who participated in the 2001 Maryland amnesty program, or who were eligible for the 2004 Delaware holding company settlement period. Taxpayers cannot be charged with a criminal tax offense arising out of any return filed or tax paid during the amnesty period, but amnesty does not apply to criminal charges that are already pending or under investigation.
CT Has an Amnesty Program -- Also Expiring in June, 09
Connecticut has also enacted an amnesty program that expires June 25, 2009.
Here's the details from CCH:
The Commissioner of Revenue Services is required to establish a tax amnesty program for persons who owe any tax for any affected taxable period to be conducted from May 1, 2009 to June 25, 2009, inclusive. "Tax" is defined as any tax imposed by any Connecticut law and required to be paid to the Connecticut Department of Revenue Services, as specified. "Affected taxable period" is defined as any taxable period ending on or before November 30, 2008, for which: (1) a tax return was required by law to be filed with the Commissioner and for which no return has been previously filed or made by the Commissioner on behalf of an affected person; or (2) a tax return was previously filed but not examined by the Department and on which the tax was underreported.
In addition, upon the filing of an amnesty application by the affected person during the tax amnesty period, and payment by that person of all taxes and interest due for affected tax periods, amnesty shall be granted and the Commissioner will waive any civil penalties that may be applicable and will not seek criminal prosecution. In the case of taxes due for an affected taxable period that is paid in full on or before June 25, 2009, interest is computed at the rate of 0.75% per month or fraction thereof from the date such taxes were originally due to the date of payment or June 25, 2009, whichever is earlier.
Any person who wilfully delivers or discloses to the Commissioner or the Commissioner's authorized agent any application, list, return, account, statement, or other document, known by that person to be fraudulent or false in any material matter, shall be ineligible for the tax amnesty program, and may, in addition to any other penalty provided by law, be fined not more than $5,000 or imprisoned not more than five years nor less than one year or both.
Here's the details from CCH:
The Commissioner of Revenue Services is required to establish a tax amnesty program for persons who owe any tax for any affected taxable period to be conducted from May 1, 2009 to June 25, 2009, inclusive. "Tax" is defined as any tax imposed by any Connecticut law and required to be paid to the Connecticut Department of Revenue Services, as specified. "Affected taxable period" is defined as any taxable period ending on or before November 30, 2008, for which: (1) a tax return was required by law to be filed with the Commissioner and for which no return has been previously filed or made by the Commissioner on behalf of an affected person; or (2) a tax return was previously filed but not examined by the Department and on which the tax was underreported.
In addition, upon the filing of an amnesty application by the affected person during the tax amnesty period, and payment by that person of all taxes and interest due for affected tax periods, amnesty shall be granted and the Commissioner will waive any civil penalties that may be applicable and will not seek criminal prosecution. In the case of taxes due for an affected taxable period that is paid in full on or before June 25, 2009, interest is computed at the rate of 0.75% per month or fraction thereof from the date such taxes were originally due to the date of payment or June 25, 2009, whichever is earlier.
Any person who wilfully delivers or discloses to the Commissioner or the Commissioner's authorized agent any application, list, return, account, statement, or other document, known by that person to be fraudulent or false in any material matter, shall be ineligible for the tax amnesty program, and may, in addition to any other penalty provided by law, be fined not more than $5,000 or imprisoned not more than five years nor less than one year or both.
Amnesty in NJ Has a Catch -- It Also Expires in June
NJ has an amnesty program in place that also expires soon -- June 15, 2009 to be exact. This from CCH:
Legislation has been enacted that requires the Director of the New Jersey Division of Taxation to establish a 45-day state tax amnesty period, to end no later than June 15, 2009.
The amnesty applies only to state tax liabilities for tax returns due on and after January 1, 2002 (the day following termination of the most recent amnesty period), and before February 1, 2009. During the amnesty period, a taxpayer who has failed to pay a state tax can pay the tax and one-half of the balance of interest that is due as of May 1, 2009, without the imposition of the remaining one-half of the balance of interest that is due as of that date, recovery fees, and civil or criminal penalties arising out of the tax obligation. The amnesty is not be available to a taxpayer who, at the time of payment, is under criminal investigation or charge for any state tax matter.
Now Here's the Catch -- If You Don't Take Advantage of This Amnesty, You'll Owe an Additional 5% Penalty Later!
If a taxpayer eligible for the amnesty fails during the amnesty period to pay taxes owed, that taxpayer will be subject to a 5% penalty that may not be waived or abated. The 5% penalty will be in addition to all other penalties, interest, or collection costs otherwise authorized by law.
Legislation has been enacted that requires the Director of the New Jersey Division of Taxation to establish a 45-day state tax amnesty period, to end no later than June 15, 2009.
The amnesty applies only to state tax liabilities for tax returns due on and after January 1, 2002 (the day following termination of the most recent amnesty period), and before February 1, 2009. During the amnesty period, a taxpayer who has failed to pay a state tax can pay the tax and one-half of the balance of interest that is due as of May 1, 2009, without the imposition of the remaining one-half of the balance of interest that is due as of that date, recovery fees, and civil or criminal penalties arising out of the tax obligation. The amnesty is not be available to a taxpayer who, at the time of payment, is under criminal investigation or charge for any state tax matter.
Now Here's the Catch -- If You Don't Take Advantage of This Amnesty, You'll Owe an Additional 5% Penalty Later!
If a taxpayer eligible for the amnesty fails during the amnesty period to pay taxes owed, that taxpayer will be subject to a 5% penalty that may not be waived or abated. The 5% penalty will be in addition to all other penalties, interest, or collection costs otherwise authorized by law.
Amnesty About to Expire in AZ on June 1, 2009
Believe it or not, amnesty offers don't come around all that often. From time to time we like to highlight the current states who are offering some type of amnesty program.
Arizona has a program that is just about to expire. You'll have to hurry to take advantage of it. But if you're under audit in AZ you might want to do something quick. Here's the details from CCH, and I quote:
"The Arizona Department of Revenue will conduct a tax amnesty program from May 1, 2009, through June 1, 2009, that covers personal income taxes, corporate income taxes, transaction privilege (sales ) taxes, tobacco taxes, and liquor taxes. The amnesty provides an opportunity for those who live, work, or do business in Arizona to pay any back taxes owed to the state without penalty or criminal prosecution. Additionally, a reduced interest rate will apply for those who qualify.
For taxes filed on an annual basis, amnesty is available for years beginning on or after January 1, 2002, and ending before January 1, 2008. Taxpayers who file taxes on a monthly or quarterly basis are eligible for tax periods beginning on or after January 1, 2003, and ending before January 1, 2008.
Amnesty tax returns must be submitted with the Amnesty Application form, and be filed or postmarked and paid in full by June 1, 2009, in order to qualify for the program. Amnesty program forms and applications are available on the Department's Web site under the Forms & Calculator section.
Tax amnesty is available to:
-- those who failed to file a tax return;
-- taxpayers who failed to report all income or all tax, interest and penalties that were due;
-- taxpayers who claimed incorrect credits or deductions;
-- taxpayers who misrepresented or omitted any tax due;
-- nonresidents or part-time residents who receive income that may be taxable in Arizona;
-- out-of-state and multi-state businesses; and
-- taxpayers who are under audit (not finalized).
Persons who are a party to any criminal proceeding with respect to any tax imposed by any law of Arizona and required to be collected by the Department that is pending on May 1, 2009, for failure to file, failure to pay, or fraud may not participate in the amnesty program. Additionally, persons under criminal investigation may not participate in the program. Tax amnesty does not apply to 2008 Arizona income tax due April 15, 2009."
Arizona has a program that is just about to expire. You'll have to hurry to take advantage of it. But if you're under audit in AZ you might want to do something quick. Here's the details from CCH, and I quote:
"The Arizona Department of Revenue will conduct a tax amnesty program from May 1, 2009, through June 1, 2009, that covers personal income taxes, corporate income taxes, transaction privilege (sales ) taxes, tobacco taxes, and liquor taxes. The amnesty provides an opportunity for those who live, work, or do business in Arizona to pay any back taxes owed to the state without penalty or criminal prosecution. Additionally, a reduced interest rate will apply for those who qualify.
For taxes filed on an annual basis, amnesty is available for years beginning on or after January 1, 2002, and ending before January 1, 2008. Taxpayers who file taxes on a monthly or quarterly basis are eligible for tax periods beginning on or after January 1, 2003, and ending before January 1, 2008.
Amnesty tax returns must be submitted with the Amnesty Application form, and be filed or postmarked and paid in full by June 1, 2009, in order to qualify for the program. Amnesty program forms and applications are available on the Department's Web site under the Forms & Calculator section.
Tax amnesty is available to:
-- those who failed to file a tax return;
-- taxpayers who failed to report all income or all tax, interest and penalties that were due;
-- taxpayers who claimed incorrect credits or deductions;
-- taxpayers who misrepresented or omitted any tax due;
-- nonresidents or part-time residents who receive income that may be taxable in Arizona;
-- out-of-state and multi-state businesses; and
-- taxpayers who are under audit (not finalized).
Persons who are a party to any criminal proceeding with respect to any tax imposed by any law of Arizona and required to be collected by the Department that is pending on May 1, 2009, for failure to file, failure to pay, or fraud may not participate in the amnesty program. Additionally, persons under criminal investigation may not participate in the program. Tax amnesty does not apply to 2008 Arizona income tax due April 15, 2009."
Thursday, May 14, 2009
Sales Tax Rate Changes in: HA, IL & NY
May 11, 2009: NO RATE CHANGES ANNOUNCED
May 12, 2009: SEE BELOW
Hawaii --Sales and Use Tax: Transient Accommodations Tax Rate Increased
The Hawaii transient accommodations tax rate will increase from 7.25% to 8.25% from July 1, 2009, through June 30, 2010, and will increase again from 8.25% to 9.25% from July 1, 2010, through June 30, 2015. Beginning July 1, 2015, the transient accommodations tax rate is scheduled to decrease to the current 7.25% rate. The tax rate increase was vetoed by Hawaii Gov. Linda Lingle, but the Legislature overrode her veto.
S.B. 1111, Laws 2009, effective as noted
Illinois --Sales and Use, Utilities Taxes: Chicago Wireless Retailers Must Collect Full 7% Rate as of June 1
Wireless telecommunications retailers currently paying a reduced Chicago simplified telecommunications tax rate of 6.5% must begin to collect and remit the full 7% rate beginning June 1, 2009. Pursuant to a 2005 class action settlement, a reduced 6.5% tax rate was to remain in effect until $30 million in savings for customers were realized. Because the agreed savings have been realized, the reduced rate will end. Retailers were notified of this rate change in an earlier release.
Simplified Telecommunications Tax Ruling 1A, Chicago Department of Revenue, May 5, 2009
New York --Sales and Use Tax: Notice Issued on Quarterly Cents-Per-Gallon Rate Adjustments
The New York Department of Taxation and Finance has issued a notice regarding the adjustment of the state and local cents-per-gallon rates of New York sales and use taxes on certain motor fuel and diesel fuel (together, "qualified fuel").
The commissioner of taxation and finance is required to establish an average price (not including sales tax or fuel excise tax) on motor fuel and diesel fuel during each quarter. Counties and cities that have elected a cents-per-gallon method of tax must multiply the average price by the local sales tax rate. If the result of this computation is less than the locality's effective cents-per-gallon rate, localities must drop their cents-per-gallon rate to the lower rate, rounded to the nearest cent. Adjustments to a cents-per-gallon rate due to a change in the average price must be published by the commissioner and will take effect on the first day of the next succeeding sales tax quarter.
The average price is also multiplied by the state percentage sales tax rate and the Metropolitan Commuter Transportation District (MCTD) percentage tax rate. If the result of this computation is a lower state or MCTD cents-per-gallon rate, the state or MCTD cents-per-gallon rate is also adjusted to the lower rate. The new rates would also take effect on the first day of the next succeeding sales tax quarter.
The commissioner has established the required average price applicable to the sales tax quarter beginning June 1, 2009. As a result, no local cents-per-gallon tax rate on qualified fuel is being adjusted effective June 1, 2009. Similarly, no adjustment is being made to the state cents-per-gallon rate effective June 1, 2009. However, the MCTD cents-per-gallon rate on qualified fuel will decrease from 0.75 cents to 0.7 cents effective June 1, 2009.
Important Notice N-09-10, New York Department of Taxation and Finance, May 2009
May 13, 2009: NO RATE CHANGES ANNOUNCED
May 14, 2009: SEE BELOW
New York --Sales and Use Tax: Publication Listing Local Rates on Qualified Fuel Revised
The New York Department of Taxation and Finance has revised a publication listing the local sales and use tax rates on qualified motor fuel, diesel motor fuel, and B20 biodiesel, effective June 1, 2009. The publication also lists the localities that have elected the cents-per-gallon method of computing local sales tax on qualified fuel, and the applicable local cents-per-gallon rates. It also lists those localities that continue to use the percentage rate method of computing sales tax on qualified fuel, and the applicable percentage rates.
The revised publication reflects that the state sales tax rate within the Metropolitan Commuter Transportation District (MCTD) will decrease from 8.75 cents to 8.7 cents, effective June 1, 2009.
Publication 718-F, New York Department of Taxation and Finance, May 2009
May 15, 2009: NO RATE CHANGES ANNOUNCED
Legal Disclaimer: This publication is designed to distribute general tax information. Applicable laws and regulations may vary by state and your specific facts or circumstances. Due to the ever-changing nature of laws and regulations, there may be omissions, delays or inaccuracies in the information contained in this newsletter. Therefore, the information herein is not to be considered tax advice nor a substitute for consulting with professionals who are familiar with your particular factual situation. No client, advisory, fiduciary or professional relationship is implied or established. Please contact a Peisner Johnson consultant to discuss the impact of this information on your particular situation. © 2008 Sales tax rate source: Used by permission from CCH INC Tax Research Network Subscription Service & RIA CHECKPOINT News Headlines Subscription Service. All Rights Reserved.
May 12, 2009: SEE BELOW
Hawaii --Sales and Use Tax: Transient Accommodations Tax Rate Increased
The Hawaii transient accommodations tax rate will increase from 7.25% to 8.25% from July 1, 2009, through June 30, 2010, and will increase again from 8.25% to 9.25% from July 1, 2010, through June 30, 2015. Beginning July 1, 2015, the transient accommodations tax rate is scheduled to decrease to the current 7.25% rate. The tax rate increase was vetoed by Hawaii Gov. Linda Lingle, but the Legislature overrode her veto.
S.B. 1111, Laws 2009, effective as noted
Illinois --Sales and Use, Utilities Taxes: Chicago Wireless Retailers Must Collect Full 7% Rate as of June 1
Wireless telecommunications retailers currently paying a reduced Chicago simplified telecommunications tax rate of 6.5% must begin to collect and remit the full 7% rate beginning June 1, 2009. Pursuant to a 2005 class action settlement, a reduced 6.5% tax rate was to remain in effect until $30 million in savings for customers were realized. Because the agreed savings have been realized, the reduced rate will end. Retailers were notified of this rate change in an earlier release.
Simplified Telecommunications Tax Ruling 1A, Chicago Department of Revenue, May 5, 2009
New York --Sales and Use Tax: Notice Issued on Quarterly Cents-Per-Gallon Rate Adjustments
The New York Department of Taxation and Finance has issued a notice regarding the adjustment of the state and local cents-per-gallon rates of New York sales and use taxes on certain motor fuel and diesel fuel (together, "qualified fuel").
The commissioner of taxation and finance is required to establish an average price (not including sales tax or fuel excise tax) on motor fuel and diesel fuel during each quarter. Counties and cities that have elected a cents-per-gallon method of tax must multiply the average price by the local sales tax rate. If the result of this computation is less than the locality's effective cents-per-gallon rate, localities must drop their cents-per-gallon rate to the lower rate, rounded to the nearest cent. Adjustments to a cents-per-gallon rate due to a change in the average price must be published by the commissioner and will take effect on the first day of the next succeeding sales tax quarter.
The average price is also multiplied by the state percentage sales tax rate and the Metropolitan Commuter Transportation District (MCTD) percentage tax rate. If the result of this computation is a lower state or MCTD cents-per-gallon rate, the state or MCTD cents-per-gallon rate is also adjusted to the lower rate. The new rates would also take effect on the first day of the next succeeding sales tax quarter.
The commissioner has established the required average price applicable to the sales tax quarter beginning June 1, 2009. As a result, no local cents-per-gallon tax rate on qualified fuel is being adjusted effective June 1, 2009. Similarly, no adjustment is being made to the state cents-per-gallon rate effective June 1, 2009. However, the MCTD cents-per-gallon rate on qualified fuel will decrease from 0.75 cents to 0.7 cents effective June 1, 2009.
Important Notice N-09-10, New York Department of Taxation and Finance, May 2009
May 13, 2009: NO RATE CHANGES ANNOUNCED
May 14, 2009: SEE BELOW
New York --Sales and Use Tax: Publication Listing Local Rates on Qualified Fuel Revised
The New York Department of Taxation and Finance has revised a publication listing the local sales and use tax rates on qualified motor fuel, diesel motor fuel, and B20 biodiesel, effective June 1, 2009. The publication also lists the localities that have elected the cents-per-gallon method of computing local sales tax on qualified fuel, and the applicable local cents-per-gallon rates. It also lists those localities that continue to use the percentage rate method of computing sales tax on qualified fuel, and the applicable percentage rates.
The revised publication reflects that the state sales tax rate within the Metropolitan Commuter Transportation District (MCTD) will decrease from 8.75 cents to 8.7 cents, effective June 1, 2009.
Publication 718-F, New York Department of Taxation and Finance, May 2009
May 15, 2009: NO RATE CHANGES ANNOUNCED
Legal Disclaimer: This publication is designed to distribute general tax information. Applicable laws and regulations may vary by state and your specific facts or circumstances. Due to the ever-changing nature of laws and regulations, there may be omissions, delays or inaccuracies in the information contained in this newsletter. Therefore, the information herein is not to be considered tax advice nor a substitute for consulting with professionals who are familiar with your particular factual situation. No client, advisory, fiduciary or professional relationship is implied or established. Please contact a Peisner Johnson consultant to discuss the impact of this information on your particular situation. © 2008 Sales tax rate source: Used by permission from CCH INC Tax Research Network Subscription Service & RIA CHECKPOINT News Headlines Subscription Service. All Rights Reserved.
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