At least seven states and the District of Columbia state are offering  voluntary compliance programs that allow companies to avoid costly  penalties for late taxes.

Here’s an overview of a few we found:

Tax Amnesty Programs
ARIZONA – Employers can escape administrative, civil and criminal actions by taking advantage of the tax amnesty program. The Department of Revenue may reduce or waive civil penalties and impose a lower interest rate on tax liabilities. For tax returns filed monthly or quarterly, amnesty is limited to filing periods beginning on or after 1/1/03 and before 1/1/08. Effective: 5/1/09 – 6/1/09.
Info: www.azdor.gov/taxamnesty

ALABAMA – Last chance if you want to get in on “Operation Clean Slate.” It ends 5/15/09. Note: Employers with existing withholding accounts aren’t eligible.
Info: www.ador.state.al.us/cleanslate.html

CONNECTICUT – Here, the amnesty program runs from 5/1/09 – 6/25/09. Download this publication to get the answers you need.
Info: www.ct.gov/drs/cwp/view.asp?A=1510&Q=435132

NEW JERSEY – A new program running from 5/4/09 through 6/15/09 covers tax returns due on or after 1/1/02, but before 2/1/09. Participants won’t have to pay half of the interest due as of 5/1/09.
Info: www.state.nj.us/treasury/taxation/amnesty2009.shtml

VIRGINIA – You’ll want to check the state’s Web site for details on a 60- to 75-day amnesty program that’ll be in effect between 7/1/09 – 6/30/10.
Employers can escape all civil and criminal penalties, plus 50% of the interest assessed. Those with outstanding liabilities that don’t participate will get socked with a 20% penalty on the unpaid taxes.
Info: www.richmondsunlight.com/bill/2009/sb1120

Voluntary Compliance Programs
DISTRICT OF COLUMBIA – Employers with outstanding tax liabilities can now come forward and settle up. The Office of Tax and Revenue will limit the “look-back” period to the lesser of three years or the date when the taxpayer established business in the District. Employers can get penalties waived if they pay in full the tax and interest.
Info: http://newsroom.dc.gov/show.aspx/agency/otr/section/2/release/16384/year/2009

NEW YORK – Employers participating in the state’s program must pay all liabilities and agree to future compliance to escape from penalties and criminal tax prosecution.
Info: www.nystax.gov

SOUTH CAROLINA – The state’s targeting taxpayers who may have nexus with SC, but aren’t registered with DOR to collect or remit taxes. Employers can begin paying taxes plus interest for the agreed lookback period without incurring penalties for late filing and late payment. Effective: initial contacts made on or after 5/1/09.
Info: www.sctax.org/NR/rdonlyres/B947B619-7BAC-46F1-8689-85F39849BD85/0/RP092.pdf

Tags: alabama, Arizona, connecticut, district of columbia, new jersey, New York, south carolina, virginia