In what was beginning to seem like an unlikely event, the Michigan Legislature finally passed a nearly year-old bill that will allow for a limited amnesty period, from May 15, 2011, to June 30, 2011. While the Senate passed the original amnesty bill in 2009, there was no further movement of the bill until
On September 1, the Superior Court of New Jersey, Appellate Division, issued its opinion in Praxair Technology, Inc. v. Dir., Div. of Taxation, Case No. A-6262-06T3 (N.J. Super. Ct. App. Div. 2010), which upheld the Director’s imposition of a penalty on Praxair for failing to file a tax return for the 1994, 1995, and 1996 tax years. Praxair took the position that it was not subject to tax under New Jersey tax law because it did not have physical presence in New Jersey. Although the statute remained unchanged, the New Jersey Division of Taxation made a regulatory change in 1996 to add an example that explained that it was the Division’s position that Praxair was subject to the corporate business tax. In addition, the Appellate Division upheld a post-amnesty penalty against Praxair because it failed to take advantage of the 2002 tax amnesty, even though the New Jersey Supreme Court, in 2006, held that economic presence was put into effect in 1996 with the regulatory change. Lanco, Inc. v. Dir., Div. of Taxation, 908 A.2d 176 (N.J. 2006).Continue Reading New Jersey Appellate Division Says Praxair Should Have Read the Tea Leaves on Tax Liabilities
On September 1, Kansas kicked off its third tax amnesty program since 1984. Kansas enacted the amnesty program as part of Senate Bill 572, which the Kansas legislature passed on May 27, 2010. The program will run from September 1, 2010, to October 15, 2010. Unlike some other states’ amnesty programs, Kansas’s amnesty program allows eligible, participating taxpayers to receive abatement of both penalties and interest. However, in return, taxpayers must give up all refund claims related to amounts paid under the program. For taxpayers that have accrued significant penalties or interest on past due claims, but may have reasonable positions with respect to such unpaid claims, participating in the Kansas program may not be advisable.Continue Reading Filling the Coffers: Kansas Is Yet Another State to Enact an Amnesty Program With a Few Twists
Illinois recently enacted a tax amnesty program that provides a carrot—but carries a big stick. Taxpayers who participate in the program are able to eliminate interest and double penalties for any eligible tax liabilities. However, taxpayers that do not participate in the program will be subject to double interest and penalties on any eligible liability. Ouch! Taxpayers must analyze the pros and cons of the amnesty program and decide quickly because it will run for only a very brief time—from October 1 through November 8, 2010.