House Bill No. 5801, approving tax amnesty for all eligible taxpayers, was passed by the Florida State Legislature and awaits the Governor’s signature for final approval. The Florida tax amnesty program as prescribed by the Bill begins July 1, 2010 and
extends for a period of three months (ending on September 30, 2010). The program provides for the waiver of all civil and criminal penalties and a portion of the statutory interest for any tax liabilities incurred prior to July 1, 2010. A 10% “administrative
collection processing fee” applies to the total tax, penalty and interest, calculated before application of the amnesty program. Eligible taxpayers can include a taxpayer under audit, inquiry, examination, or civil investigation initiated by the Department of
Revenue, notwithstanding the amount due has been assessed or is part of a proposed assessment. Any taxpayer under criminal investigation is precluded from participation in the amnesty program.
To qualify, eligible taxpayers must file all required returns and pay all tax, interest and administrative processing fees. Interest will be discounted by 25% if the taxpayer has already been contacted by the Florida Department of Revenue or 50% if the taxpayer has not been contacted. Payment plans are afforded taxpayers upon request and upon entering into a stipulated payment agreement.
This is an excellent opportunity to assess your sales and use tax exposure in Florida and take action to mitigate your risk. Typically, states are known to be much more aggressive with tax assessments and less willing to waive penalties after an amnesty