Florida Enacts Amnesty Program

State and Local Tax

By Jack Stewart

Florida Governor, Charlie Crist recently signed Bill 5801 establishing an amnesty program for the period of July 1 through September 30, 2010. The amnesty program applies to most state taxes with the exception of employment taxes and includes liabilities both known and unknown to the Florida Department of Revenue.

Additional characteristics of the Florida Amnesty Program include:

  • Abatement of all penalties
  • 25% reduction of interest if responding to a bill, delinquency, audit or other assessment issued by the Department
  • 50% reduction of interest if reporting a previously unknown liability or responding to a letter of inquiry
  • Applies to most taxpayers who are not under investigation, accused of, or serving a conviction for violating a revenue law
  • May not apply to a taxpayer who is already under an agreement with the Department
  • In addition to the typical Department authority to rescind the agreement for fraud or misrepresentation, the Department also has additional authority to withdrawal the agreement for a “mutual mistake of fact” 
  • 10% processing fee calculated on the full amount of tax, penalty and interest due prior to any deduction of penalty and interest
  • Stipulated payment plan option

Additional information and the Tax Amnesty Agreement Application will be posted on the Florida Department’s website by July 1, 2010. Taxpayers considering the amnesty program should contact their state and local tax professional to discuss the ramifications prior to entering any amnesty agreement. 

Cathy Condrac was also a contributor to this Insight.

Schneider Downs provides accountingtax, wealth management and business advisory services through innovative thought leaders who deliver the expertise to meet the individual needs of each client. Our offices are located in Pittsburgh, PA and Columbus, OH. 

This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax-related matter.

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