June 23, 2011

Owe Back Taxes? All Excuses Welcome

Time is running short for taxpayers to take advantage of Michigan's 2011 Tax Amnesty program. Tax Amnesty, which offers an opportunity for qualifying taxpayers to have penalties waived if they pay unpaid or delinquent state taxes and interest, in full, ends June 30th. Regardless of the reason a taxpayer has fallen behind, All Excuses Welcome.

To take advantage of Tax Amnesty, an individual or business must submit a completed Tax Amnesty Application, with full payment, postmarked by June 30, 2011. All state taxes administered under the Revenue Act (PA 122 of 1941) are eligible for amnesty, including Income Tax, Michigan Business Tax, Single Business Tax, Sales and Use Tax, Withholding Tax, Tobacco Taxes, and Motor Fuel Taxes. Only taxes for return periods ending on or before December 31, 2009 are eligible for Amnesty.

In many cases, prior tax liabilities carry penalty charges that total 25 percent or more of the taxes due. Under Tax Amnesty, those penalties, and the possibility of civil or criminal prosecution, can be avoided.

The process of filing for Amnesty is easy. Individuals or businesses can download a one-page Amnesty application from Treasury's Web site, provide the appropriate information, and send it to the department, with full payment of the tax and interest due.

The Department of Treasury will release final revenue figures following the conclusion of Tax Amnesty. As of June 20th, more than 8,100 taxpayers had submitted Amnesty applications with the Tax Amnesty Web site (www.mitaxamnesty.org) having received nearly 40,000 hits over the last two months.

The Tax Amnesty site includes an interest calculator to help taxpayers determine the interest due as well as the penalties that can be avoided. Frequently asked questions are also available, as well as Web casts that provide a program overview and assistance in filling out the Amnesty application. For more information, taxpayers and their tax professionals can call (855) 466-4829.