Missouri to Enact Amnesty Program
Author: Bob Johnson Jr
On April 27, 2015, Missouri Gov. Jay Nixon signed into law a new tax amnesty program for state income and franchise, sales and use and withholding taxes.
Amnesty will be available for the period from September 1, 2015, to November 30, 2015. Participants could receive relief from penalties, additions to tax and interest with respect to unpaid taxes or taxes due and owing reported and paid in full by November 30, 2015. The amnesty would apply only to tax liabilities due on or before December 31, 2014.
Taxpayers that want to participate must send the prescribed forms to the Missouri Department of Revenue, file applicable tax returns for each taxable period for which amnesty is requested, pay the entire balance of tax due by November 30, 2015, and comply with state tax laws for the next eight years. Amnesty is not available to taxpayers who at the time of payment are party to any criminal investigation or any civil or criminal litigation for nonpayment.
If a taxpayer elects to participate in the amnesty to report unpaid taxes, that will constitute an express and absolute relinquishment of the taxpayer’s administrative and judicial rights of appeal. In addition, no tax payment received under this section would be eligible for refund or credit.
The amnesty contains language that could be problematic in the future. First, participating taxpayers must in good faith comply with state tax laws for eight years following the date of the amnesty agreement. Failure to comply with all state tax laws at any time during the eight years following the date of the agreement would make all penalties, additions to tax and interest waived under the amnesty agreement due immediately. In addition, any taxpayer granted amnesty would be ineligible to participate in future amnesty programs for the same type of tax.
A taxpayer who may have unpaid state taxes for periods through December 31, 2014, should consider the benefits of participating in the amnesty to become compliant and avoid paying penalties, additions to tax and interest.
To learn more about this amnesty program, contact your BKD advisor.