Type of Program:
Voluntary Compliance Program (see more information about types of tax relief programs).
When:
August 1, 2005 through January 31, 2006.
Who Can Apply:
Any individual or business that participated in a tax shelter.
Relief Provided:
Waives additional penalties for full payment of taxes plus interest.
Requirements:
Submit Voluntary Compliance Initiative application (Form MN-VCI) and file amended state and federal tax returns by January 31, 2006. Full payment of additional taxes and interest by January 31, 2006.
What if I don't participate:
Taxpayers risk being discovered by Minnesota's normal compliance process. Taxpayers, if discovered, will be subject to interest and late payment penalties, plus additional tax shelter penalties.
Additional Tax Shelter Penalties:
- $10,000 penalty per tax shelter registration number not reported ($50,000 if a business),
- $10,000 penalty per reportable transaction not reported ($50,000 if a business),
- $100,000 penalty per listed transaction not reported ($200,000 if a business),
- 20% penalty on understatement of the tax liability or 30% penalty if the transactions were not disclosed.
Program does not apply to:
Sales and use taxes. The Minnesota Department of Revenue operates a separate voluntary compliance program for sales and use taxes.
