State and Local Tax Alert - April 2015
Missouri Introduced a New Three-Month Tax Amnesty Program in 2015
On April 27, 2015, Missouri Governor Jay Nixon (D) approved House Bill 384, which requires the Department of Revenue to implement an amnesty program under which it is required to waive all penalties, additions to tax, and interest of a qualifying taxpayer related to income tax (including, corporate, individual, and withholding tax), sales and use tax, and corporation franchise tax due as of December 31, 2014.
A qualifying taxpayer, for purposes of the amnesty program, is one that is not a party to a criminal investigation or criminal or civil litigation at the time of payment, submits a written application on forms prescribed by the Director of Revenue during the period September 1, 2015, through November 30, 2015, pays its entire tax liability by November 30, 2015, and complies in “good faith” with the state’s tax laws for the eight-year period following the date of the amnesty agreement. A grant of amnesty for a particular tax type under this program makes a taxpayer ineligible to participate in a future amnesty program for the same tax type.
- This amnesty program is significant in that it is the first such program in Missouri since 2002 and, thus, offers an opportunity to settle up to 12 years of Missouri income, franchise, and sales and use taxes free from penalties, additions to tax, and interest.
- This amnesty program offers broader relief than the relief offered under Missouri’s traditional voluntary disclosure program, inasmuch as this amnesty program offers relief from penalties, additions to tax, and interest, whereas Missouri’s voluntary disclosure program limits relief to penalties.
- This amnesty program is also wider in scope than Missouri’s voluntary disclosure program. For example, Missouri’s voluntary disclosure program is limited to a taxpayer that has not been contacted by the Department of Revenue for the tax in question, is not under audit for any tax, or has not previously filed a tax return with underreported tax, whereas this amnesty program applies to all applicable taxes of a qualifying taxpayer due as of December 31, 2014.
For more information, please contact one of the following regional practice leaders: