The State of New York has announced a tax amnesty program that is expected to raise as much as $175 million in delinquent and disputed taxes between now and January 31, 2003.
Eligible taxpayers are those who have failed to file required tax returns from previous tax periods, taxpayers who understated the tax liability on tax returns filed previously, and taxpayers who have an outstanding tax bill.
The program applies to nearly all New York taxes, including personal income tax for New York State and New York City and the city of Yonkers, withholding taxes, sales and use taxes, excise taxes, highway use tax, estate tax, gift tax, generation-skipping tax, real property transfer gains tax, and many corporate franchise taxes.
Tax liabilities that qualify for the amnesty program are taxes for periods ending prior to January 1, 2001. Amnesty recipients will be entitled to a waiver of civil penalties, a 2% reduction of interest rates, and immunity from all administrative, civil, and criminal prosecution for the tax amnesty granted periods.
Taxpayers who wish to participate in the amnesty program, including out-of-state taxpayers, must postmark their forms by January 31, 2003. Online applications may be submitted by midnight eastern time, January 31, 2003. All amnesty payments must be made in full by the later of March 15, 2003 or the date provided on the amnesty bill.
Taxpayers who participated in one of New York's previous tax amnesty programs in either 1994 or 1996-97 are not eligible to participate in this new program. Also, most of the amnesty provisions are not available to business taxpayers with more than 500 employees.
Tax amnesty applications are available on the New York State Department of Taxation and Finance Web site.