Due to the recession and budget issues, many states are turning to amnesty programs to rake in some extra cash. Amnesty programs give those who owe back taxes a chance to pay off their debt without all the interest and penalties. And states provide temporary interest and penalty waivers to encourage delinquent taxpayers to pay up.
The following jurisdictions have instituted amnesty programs for 2011:
- Michigan's tax amnesty begins May 15, 2011 and ends June 30, 2011.
- Washington's tax amnesty for businesses that runs from February 1, 2011 to April 18, 2011.
- Arizona's tax amnesty is scheduled to run from September 1 to October 1, 2011.
- Californa's tax amnesty runs from August 1 to October 31, 2011, and is designed specifically to address previously unreported foreign-source income.
Before You Apply for Tax Amnesty
Before applying for a tax amnesty program you should consider your ability to file all the required paperwork and pay all the required taxes, including any adjustments you may need to make on your federal tax returns.