Texas Tax Amnesty Program Starts May 1st

By Tim Clancy

The Texas Comptroller Glenn Hagar announced the Tax Amnesty Program, as required by the Texas Legislature’s Senate Bill 1, will span from May 1, 2018 to June 29, 2018.  Key components of the program include:
 
  • All state and local taxes and fees the Comptroller’s office administers are eligible, with the exception of Public Utility Commission gross receipts assessments. The Comptroller does not administer sports and community venue tax or property taxes, so these are not eligible. The unclaimed property program and IFTA taxes are not a part of tax amnesty.
  • Eligibility for tax periods prior to January 1, 2018.
  • The Comptroller will waive all penalties and interest on taxes due for the tax periods and types for which amnesty is granted.
 
Taxpayer Eligibility
Eligible taxpayers include those taxpayers who:
 
  • Did not file a required return or report originally due before January 1, 2018.
  • Underreported taxes or fees due for any reason, such as erroneously claiming credits or deductions.
  • Not currently under audit or identified for audit.
  • Not presently in litigation or have accounts which have been reduced to judgement.
  • Have not already signed a settlement agreement or voluntary disclosure agreement.
 
Considerations
The Texas Tax Amnesty Program intends to promote voluntary reporting by giving delinquent taxpayers the chance meet the state’s filing requirements without paying penalties or interest.  One key difference between the Texas amnesty program and programs offered by other states that there is not a stated limited lookback period.  Since the state has not commented on whether a limited look back period exists, taxpayers are likely required to file returns or reports for all years with any taxes due.  Taxpayers who believe they are delinquent and meet the above requirements should consult a tax advisor for further insights into potential benefits of the Texas Tax Amnesty Program.
 
For more information please contact either:
 

Tim Clancy
State and Local Tax Practice Leader
Windham Brannon, P.C.
678 510 2804
tclancy@windhambrannon.com
 
Samantha Sick
State and Local Tax
Windham Brannon, P.C.
678 510 2872
ssick@windhambrannon.com