Is amnesty the way forward? Does your company have past liabilities that need paid without paying penalties or interest? Should your company participate in a state's amnesty program or utilize the state's Voluntary Disclosure Program?
These questions plague companies when faced with identified compliance exposure and failures for multiple tax years. Some states offer one-time, short time-frame amnesty periods allowing companies to come forward, file prior year tax returns, and pay tax with the promise of future compliance. Depending on the specifics of the state's amnesty program, penalties and/or interest may be abated.
Key to remember: if your company has exposure and does not come forward, then the state may assess more significant penalties and interest when it finds your company later.
The Council on State Taxation (COST) has put together a great matrix of 2015 state tax amnesty programs. Check it out here.
Also, if you would like to read more about amnesty, check out my previous posts here.
Specifically, you may like: Amnesty and Voluntary Disclosure Agreements: What, When, Why?