All Is Forgiven

Physician's Money Digest, September30 2003, Volume 10, Issue 18

Many state governments, caught in abudget pinch, are trying to prop up shakyrevenues by declaring tax amnesties fordelinquent taxpayers. Florida, Missouri,Virginia, Maine, and Arizona all currentlyhave amnesty programs in progress.The programs in Florida, Arizona, andMissouri will end by October 31;Virginia's is scheduled to end November3; and Maine's runs through November30. Although each state has its own rules,the general idea is that the state agrees notto prosecute or penalize any taxpayerwho voluntarily pays back taxes. In mostcases, the tardy taxpayer does pay intereston taxes owed, but some states maycharge a lower interest rate or even nointerest at all as an added incentive. Visitthe Federation of Tax Administrators(www.taxadmin.org) for links to all taxamnesty programs and details.