Virginia tax amnesty on the horizon

Update 9.15.2017: The 2017 Virginia Tax Amnesty program runs Sept. 13 through Nov. 14, 2017. More information is available at Virginia Tax Amnesty.

Virginia will offer a tax amnesty program sometime between July 1, 2017, and June 30, 2018. The Tax Commissioner will establish the exact dates, but according to recently enacted legislation, the amnesty program will last between 60 and 75 days.

Within the established guidelines, eligible taxpayers with outstanding tax assessments or underreported taxes will have all applicable civil and criminal penalties and one-half of the interest assessed (or assessable) waived upon full payment of the amount of taxes and interest owed. Participants who fail to fulfill their obligations by the close of the tax amnesty program will be penalized 20 percent of the unpaid tax.

The program is open to taxpayers who have failed to file returns for any tax administered by the Department of Taxation. However, it is not open to any taxpayer currently under investigation or prosecution for filing a fraudulent return or for failure to file a return with the intent to evade tax. In addition, tax amnesty isn't available for assessments dated less than 90 days prior to the first day of the program. Additional guidelines are available in HB 2246, Ch 54.

Tax amnesty programs are a terrific opportunity for taxpayers with outstanding liability to come clean with the state with minimal financial penalty (i.e., interest). Yet it is better still to avoid the need for amnesty by paying what is owed when it’s due. Tax automation software helps businesses manage sales and use tax compliance, ensuring the proper tax is collected wherever sales occur. Learn more.