09/07/2010
Cash strapped states are resurrecting a form of revenue generation: amnesty programs, such as those in Kansas and Illinois. The Kansas amnesty program runs from September 1, 2010, to October 15, 2010. It covers nearly all types of taxes due the state of Kansas for periods ending on or before December 31, 2008, but excludes some in progress (e.g., criminal investigations and civil or criminal cases). Taxes are due, but penalties and interest are not required to be paid. Participation forms for this program are available on the Kansas Department of Revenue website.
The Illinois amnesty program also begins this fall on October 1, 2010, and continues until November 8, 2010. The Illinois program includes taxes due after June 30, 2002, and prior to July 1, 2009. Of special note: after the program ends, taxpayers eligible for tax amnesty will be charged interest and penalties at twice the normal rate.
Both states are expecting significant revenue to be generated by their amnesty program and have recent experience with such programs to support their expectations. Persons interested in learning if an amnesty program may assist them should contact the attorney with whom they regularly do business or one of the attorneys in our tax department.