Taking Advantage of State & Local Tax Amnesties

Many companies consider participating in a state’s general tax amnesty to be a no-brainer. A company can clean up past errors on tax compliance, eliminate the risk of costly and unpredictable state audits, and avoid penalties -- and even civil and criminal prosecution.

Still, the decision isn’t cut-and-dried. To participate, a company must file ALL taxes underpaid due to errors -- and revenue departments rarely allow installment arrangements. Some states require amnesty participants to sign a settlement agreement promising to pay all taxes on time in the future.

Do the benefits outweigh the up-front outlay of cash -- especially since most states won't refund overpayments?

Listen as our panel of corporate tax pros and advisors with established track records on state amnesties provide the pros and cons and the rewards and risks of participating.

Robert Rubin, Of Counsel, McDonough Holland & Allen, Sacramento, focuses his practice on the resolution of local, state and federal tax controversies across the full range of business taxes.

David J. Shipley, Esq., Special Counsel, McCarter & English, Philadelphia, represents clients in state tax controversies and provides multistate tax advice regarding business operations, planning and corporate mergers and acquisitions.

The panelists brief participants on these and other key points:

• The trends in program rules and paperwork from previous amnesties with an eye to what’s coming for future programs.
• How to assess whether an internal position on a tax matter is strong enough to take chances on an audit and decline an amnesty offer.
• Gauging the potential risks of non-participation, in terms of tougher state enforcement and stiffer post-amnesty penalties.

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