Virginia’s 2017 Tax Amnesty program (Program or Amnesty Program) is currently underway and scheduled to last until November 14th, 2017. Pursuant to the Program, qualified individuals and businesses are able to satisfy their delinquent tax obligations by paying their past-due tax bill(s), plus one-half of the interest owed, in exchange for the Commonwealth waiving all remaining interest and penalties. Taxpayers that have multiple outstanding tax bills or unfiled returns are also permitted to participate in the Program on a bill-to-bill basis. Such taxpayers may satisfy one or more outstanding tax obligations even if they’re unable to satisfy all outstanding tax obligations to the Commonwealth.
In terms of Program participation eligibility, almost all individuals and business entities are permitted to participate so long as the individual or entity has a specific type of past-due tax bill or a specific type of unfiled, delinquent return. Accordingly, Commonwealth taxpayers that find themselves or their company in the following situation may be eligible for the Amnesty Program:
- Individuals or entities that have a tax bill for an “Eligible Period” (see below) and have an assessment date at least ninety (90) days prior to first day of the Amnesty Program (the Program began on September 13th, 2017), or
- Individuals or entities that have a delinquent return for an amnesty-eligible tax type and tax period.
Each specific type of Commonwealth tax, and there are over thirty (30) different taxes levied by Virginia that are eligible for the Program, has a different “Eligibility Period” that must be met in order to qualify for the Amnesty Program. Some of the more common past-due tax type Eligibility Periods are as follows: (i) the Eligibility Period for individual income taxes is taxable year 2015 and prior; (ii) the Eligibility Period for corporate income taxes is taxable year 2015 and prior; (iii) the Eligibility Period for retail sales and use taxes is the month of April 2017 and prior; and (iv) the Eligibility Period for employer income tax withholding is the month of April 2017 and prior.
The current collection status of a specific tax liability may also affect whether a Virginia taxpayer qualifies for Amnesty Program participation (e.g., Program eligibility rules differ depending on if the past-due taxes or delinquent tax return has morphed into a Converted Assessment, Lien, Jeopardy and Fraud Assessment, and so on).
As the Amnesty Program almost halfway complete, now is the time to contact a member of our firm (firstname.lastname@example.org) or your local tax professional for more information.