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NY State Residents Eligible For Indiana Tax Amnesty Program

By Stephanie R. Myers

For those who owe taxes in the state of Indiana, coming clean will soon get a lot easier—even for New York Sstate residents.

From Sept. 15 through Nov. 15, individuals and businesses who owe past-due listed taxes will get the opportunity to pay them without penalty, interest and collection fees and without fear of criminal or civil prosecution.

The Tax Amnesty program, offered through the Indiana Department of Revenue, will, according to their Web site at www.in.gov/dor/amnesty, give those who have not paid and who have an outstanding obligation, have not filed a return or have underreported their tax liability, the chance to do so. The Web site also notes that it is not necessary to be an Indiana resident to be eligible for amnesty.

Those who do not file for amnesty for taxes that were due prior to July 1, 2004, within the allotted period will be held responsible for “additional amnesty-related penalty (in addition to penalty, interest and possible collection fees)” against unpaid tax, according to the Web site.

To apply for amnesty, a signed amnesty agreement with payment must be returned within the allotted time. Additionally, any missing returns for tax periods prior to July 1, 2004, must be filed, and amended returns must be filed within 60 days of signing the agreement.of the allotted time.

John Eckart, commissioner of the Indiana Department of Revenue, said that Indiana had not previously offered a tax amnesty program. Many New York state residents stand to benefit from the amnesty program, Eckart said.

“Based upon some of general feedback we’d in received from communication, we think we have reason to anticipate a good program from those in noncompliance, from within and outside of the state,” Eckart said.

He added that there is no difference in the procedure for applying for amnesty out-of-state residents applying for amnesty compared to those living in Indiana. Both can access the Web site (www.in.gov/dor/amnesty/) to get information or to arrange payments.

“We’re getting 40 or 50 e-mails each day, and about 80 percent of those e-mails are saying that they plan to participate in the program,” Eckart said.

The department has been in contact with other state bureaus who who have offered similar programs in the past, Eckart said.

“We’re new at this, but we have expended considerable energies talking to the states who have previously participated, and we’re trying to take all the pluses and minuses and have included those in developing our program,” Eckart said.

Those who are not in compliance will benefit from participation, he said, and will face strict penalties if they choose not to participate.

“We’ve identified the individuals and businesses that owe taxes to Indiana by state, and we’re going to put in more of an aggressive collection program,” he said. “Those who do not take advantage of the amnesty will be subject to a double penalty—we’re going to be using the collection program to pursue those people that have not taken advantage.”

Michael Bucci, spokesman for the New York State Department of Taxation and Finance, said that while New York state held a successful tax amnesty program in 2002–2003, it’s important not to offer such programs on a frequent basis.

He noted that those taxpayers who come forward during amnesty periods tend to be those who owe use tax.

“They saw that the DA was prosecuting, and they got the opportunity to pay what they owe,” Bucci said.

Amnesty programs should be used in conjunction with enforcement, Bucci said. He added that those with art collections who had not paid the appropriate tax “became obviously very nervous, and rightly so.”

“We say, ‘Here’s an opportunity to become compliant. Take advantage of it, because we’re going to find out who are you eventually, and we gave you the chance to come clean,’” he said, adding that it is New York state’s legislative powers that create tax amnesty programs, not New York state’s tax department itself.

“What you want to do with an amnesty is to offer an opportunity, from time to time, to bring people who are in noncompliance into compliance, generating immediate revenue,” Bucci said. “Once people are compliaint, they tend to stay that way. Amnesty is a lifeline you throw to those who are in noncompliance to get them out of trouble, but you don’t want to do it too often. My gut instinct would tell me that (another one) would probably not happen for a while. You don’t want to have people thinking there’s always going to be one around the corner.”