With states across the U.S. facing huge revenue shortfalls, tax collectors have dredged up a familiar old tool to bolster revenues - tax amnesties.
Not since the recession years of the 1980s have so many states and municipalities adopted tax amnesty programs designed to rake in revenue that otherwise would go uncollected.
Coach operators with delinquent tax liabilities may want to have their tax adviser look into amnesty programs, which frequently waive penalties, and reduce or waive interest. Here's a sampling of amnesty programs:
* Arizona launched a tax amnesty the first of this month with officials hoping to collect $25 million in unpaid taxes. The last Arizona amnesty, 20 years ago, resulted in about 10,000 taxpayers stepping forward and adding $6 million in revenue to state coffers.
Arizona's program is for the years 1983 through 2002, and applies to a variety of taxes, including corporate income, sales and partnership. Businesses and individuals participating in the amnesty can avoid penalties and criminal prosecution, and get a reduced interest rate.
The Arizona program ends Oct. 31. Additional information is available at www.taxamnesty.az.gov.
* Virginia also began an amnesty during the first week of September. The Old Dominion program, which ends Nov. 3, allows taxpayers to pay only the tax due and half the interest on eligible outstanding tax bills and delinquent returns. All assessed penalties are waived.
Taxpayers who do not participate in the program and are caught will be assessed a 20 percent penalty on top of the unpaid tax bill. The Virginia program is for taxable years before 2002 for individual and corporate income tax returns and 2003 for business tax returns.
Visit www.vataxamnesty.com for full information.
* The tax amnesty program in Illinois is from Oct. 1 to Nov. 17, and allows taxpayers to pay outstanding liabilities without penalty and interest.
The period covered by the amnesty is June 30, 1983, to July 1, 2002.
Additional information is available at www.revenue.state.il.us/publications/bulletins/2004/Fy200411.pdf.
* New York City taxpayers can apply for amnesty from Oct. 20 through Jan. 23, for city business and excise taxes.
Under the program, the city Department of Finance will waive penalties and reduce interest for qualifying taxpayers who owe taxes for tax years or periods ending before 2002. Interest will be charged only for the period since Oct. 20, 2002.
Included in the program are taxes on commercial motor vehicles, corporations, transfers of taxicab licenses and unincorporated businesses. Sorry, it does not apply to unpaid parking debts.
The New York City program has a number of eligibility guidelines. For example, if you're under criminal investigation or making installment payments for back taxes, don't bother to apply.
More information on the New York City program is available at www.nyc.gov/html/dof/pdf/02pdf/amnexty_faqs.pdf.