Post Content

The Department of Revenue has released its report to the Legislature on the 2010 tax amnesty program, reporting a collection of $32.6 million.

The amnesty ran from April 1 to June 1, and targeted eligible business taxpayers who had previously received notices from DOR for delinquent taxes.

Under the terms of the amnesty, which were outlined in legislation (Chapter 166 of the Acts of 2009), DOR was authorized to waive unpaid penalties (and interest associated with those penalties) if eligible taxpayers paid in full the underlying tax and interested owed by June 1, 2010.

As part of the legislative authorization, DOR was also instructed to impose an additional penalty of up to $500 on any eligible taxpayer who failed to pay the outstanding full balance of tax and interest due pursuant to the amnesty program. 

DOR issued 35,288 amnesty notices in advance of the amnesty and received responses from 8,495 taxpayers. The collection of $32.6 million exceeded DOR's original estimate of $20 million. The amnesty payments resulted in the waiver of $9 million in penalties

The largest single type of collection was sales and use tax, with DOR receiving $18.9 million. Meals tax was next at $7.4 million, followed by withholding taxes at $4.5 million. All other business tax types each generated collections of less than $1 million.

DOR announced the amnesty program in March. At that time, DOR Commissioner Navjeet K. Bal said: "As we did for income taxpayers last year, the Commonwealth is offering a unique opportunity for taxpayers with an existing business tax liability incurred before Dec. 31, 2009, to pay the tax owed without having to pay hundreds of thousands of dollars in penalties. In this tough economy, this is a win for the taxpayers who receive amnesty bills, and for the Commonwealth which benefits by accelerating tax revenues and reducing the need for ongoing collection efforts associated with these delinquencies."

Written By:

Recent Posts

DOR Ruling Favorable in First Circuit Judgment posted on Mar 17

The United States Court of Appeals for the First Circuit issued judgments in the Department of Revenue’s (DOR) favor last month, finding that taxpayers in Bankruptcy proceedings cannot discharge late filed tax returns. The court consolidated two similar cases brought before them involving a total   …Continue Reading DOR Ruling Favorable in First Circuit Judgment

Five Reasons to E-File with DOR’s WebFile for Income posted on Feb 24

With Tax season well under way; DOR would like to help you make the decision to E-File with WebFile for Income this year. We know, “I’m not computer savvy” or “What about the safety of my information” has been said many times before, but we’d   …Continue Reading Five Reasons to E-File with DOR’s WebFile for Income

Class in Session at DOR University posted on Jan 20

Looking to educate yourself this tax season? Want to learn more about tax options, or DOR-related issues? All this can be achieved at DOR University, the Department of Revenue’s free online e-learning module. DOR University, created to offer free tax education to the public and   …Continue Reading Class in Session at DOR University