Texas Tax Amnesty Now in Effect

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The Texas Comptroller of Public Accounts (Comptroller) released details about the tax amnesty initiative that began May 1. The amnesty program, which will run from May 1, 2018, through June 29, 2018, is a way for delinquent taxpayers to wipe the slate clean, as the amnesty invites both registered and nonregistered taxpayers to come forward with known past tax liabilities.

This two-month program is available to eligible taxpayers who didn’t file a required return or report originally due before January 1, 2018, or underreported taxes or fees due for any reason, such as erroneously claiming credits or deductions. The amnesty program covers all state and local taxes and fees administered by the Comptroller’s office, with the exception of Public Utility Commission of Texas gross receipts assessments, International Fuel Tax Agreement taxes and unclaimed property. Motor vehicle taxes and property taxes also are excluded. Under the program, penalties and interest will be abated.

The amnesty program is available to:

  • Taxpayers who don’t have a Texas sales and use tax permit or aren’t registered for a tax or fee administered by the Comptroller’s office
  • Taxpayers who have a permit but may have underreported or owe additional taxes

Taxpayers aren’t eligible for the amnesty program if:

  • The taxpayer has been notified that a period or periods are scheduled for an audit review
  • The taxpayer is already under an audit review
  • The taxpayer has been certified by the Office of the Attorney General
  • The taxpayer is involved in litigation
  • The taxpayer has been reduced to judgment
  • The taxpayer has signed a settlement agreement or voluntary disclosure agreement

The amnesty program requires applications, registrations and returns to be mailed and submitted on paper with specific amnesty instructions even if taxpayers are normally required to file electronic returns.

To learn more about the amnesty program, contact Jana or your trusted BKD advisor.

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