TAX NEWS - June 2010

Florida Tax Amnesty: New law requires tax amnesty program to run from July 1 through September 30

H.B. 5801, signed by gov. 5/28/10. Effective immediately, new law requires the department to adopt and implement by July 1, 2010, a tax amnesty program to be in effect for a three-month period beginning on July 1, 2010 and ending on September 30, 2010. The program will cover numerous tax types, including corporate income and sales/use taxes, and will apply only to tax liabilities due prior to July 1, 2010. The program represents a "one-time opportunity" for eligible taxpayers to satisfy their tax liabilities and avoid criminal prosecution, penalties, and potentially as much as 50% of the interest due.

Any taxpayer that has entered into a settlement of liability for state or local option taxes before July 1, 2010, whether or not full and complete payment of the settlement amount has been made, is not eligible to participate in this amnesty program. However, a taxpayer may participate in the amnesty program if it is under audit, inquiry, examination, or civil investigation initiated by the department regardless of whether the amount due is included in a proposed assessment or an assessment, bill, notice, or demand for payment issued by the department, and without regard to whether the amount due is subject to a pending administrative or judicial proceeding.

Note that amnesty program participants must waive their protest and other appeal rights. Also note that payments made under the amnesty program are subject to a collection fee of 10% of the total tax, including interest and penalty, calculated before amnesty waivers.