New York is the latest state to create a tax amnesty program. Many states have adopted such programs as a means to not only raise revenue, but also to enter more taxpayers into the system. The details of the program as outlined by the New York Department of Finance and Taxation are as follows:
The program, which will take effect sometime in the first quarter of 2010, is expected to raise $250 million in the 2009-10 fiscal year and provide $100 million in recurring revenues in subsequent years. It was passed as part of a package of bills to eliminate the state's midyear budget deficit of some $3 billion.
Under the program, which is called an “accounts receivable discount program,” penalties will be reduced by 50 percent for tax liabilities that are between three and six years overdue. Penalties would be reduced by 80 percent for liabilities that are overdue by more than six years.
In a statement, Paterson said the program would raise revenues for the state, while helping taxpayers repair their credit histories and avoid costly legal action. In addition, local governments would receive about $84 million from their share of previously uncollected taxes, he said.
The Department of Taxation and Finance will establish the specific terms of the program, including the effective date.
Under the law, taxpayers who have been convicted of a crime under the Tax Law or have been subject to penalties for fraud are not eligible for the program.
Under the program, which is called an “accounts receivable discount program,” penalties will be reduced by 50 percent for tax liabilities that are between three and six years overdue. Penalties would be reduced by 80 percent for liabilities that are overdue by more than six years.
In a statement, Paterson said the program would raise revenues for the state, while helping taxpayers repair their credit histories and avoid costly legal action. In addition, local governments would receive about $84 million from their share of previously uncollected taxes, he said.
The Department of Taxation and Finance will establish the specific terms of the program, including the effective date.
Under the law, taxpayers who have been convicted of a crime under the Tax Law or have been subject to penalties for fraud are not eligible for the program.
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