News and Insights

Virginia Authorizes Tax Amnesty Program for Fiscal Year 2017-2018

Tax Development Mar 16, 2017

Virginia Governor Terry McAuliffe approved a tax amnesty program to take place during the 2017-2018 fiscal year (July 1, 2017 through June 30, 2018), lasting between 60 and 75 days. The length of the program, along with the exact dates, has yet to be determined by the Virginia Tax Commissioner.

Senate Bill 1438 (effective July 1, 2017) provides that the amnesty program will be open to any taxpayer that is required to file a return or required to pay any tax administered by the Department of Taxation but has failed to do so. Successful participation in the amnesty program waives all penalties and 50% of the interest due upon payment of a taxpayer’s outstanding liability. Amnesty-qualified liabilities that are discovered after the amnesty period ends will be assessed an additional 20% penalty. 

Taxpayers currently under investigation or prosecution for filing a fraudulent return or failing to file a return with the intent to evade tax are not eligible for the amnesty program. Similarly, taxpayers who receive assessments within 90 days of the amnesty program starting are ineligible, as are taxpayers who have assessments outside the 90-day window but whose payment due dates fall within the 90-day window. Any taxpayer with an individual, fiduciary, or corporate income tax liability for 2016 or later is ineligible. Finally, any taxpayer whose liability is the subject of a Virginia court decision rendered on or after January 1, 2016 is also excluded from the program.

To read the state issued guidelines, please see Guidelines for the Virginia Tax Amnesty Program.

Ryan will follow up with more information on this amnesty program once the dates are announced by the Tax Commissioner.