Tuesday, August 8, 2017

Rhode Island Approves Tax Amnesty

Rhode Island will offer a state tax amnesty. The amnesty will be open to all taxpayers who are
delinquent on any Rhode Island state taxes – including, but not limited to, personal income tax, sales tax, use tax, corporate income tax, and unemployment insurance tax.

The amnesty is for 75 days, ending on February 15, 2018.

Thus, the amnesty will begin in December 2017. (The Division of Taxation plans to begin accepting applications on December 1, 2017.)

The amnesty applies to any taxable period ending on or before December 31, 2016. For taxpayers whose amnesty applications are accepted, the Tax Administrator generally will not seek civil or criminal prosecution of the taxpayer, will waive penalties, and will reduce the applicable interest
rate by 25 percent.

Thus, for example, the interest rate of 18 percent in effect for calendar year 2016 would be reduced
by 4.5 percentage points, to 13.5 percent.

The amnesty will be open to any taxpayer who pays the tax and interest due upon filing the
amnesty tax return, or who enters into a bona fide installment payment agreement for reasons
of financial hardship (provided that the installment payment agreement is for a short term). The
Division of Taxation will develop and post the form to be used by amnesty applicants.
The Tax Administrator must provide a written analysis of the amnesty program by April 30,
2018, to the chairs of the House and Senate Finance Committees, with copies to the members
of the Revenue Estimating Conference.

Effective: 75-day amnesty ending February 15, 2018
Citation: Rhode Island General Laws (RIGL) Chapter 44-6.5

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