Tax amnesty is a limited-time opportunity for a specified group of taxpayers to pay a defined amount, in exchange for forgiveness of a tax liability (including interest and penalties) relating to a previous tax period or periods and without fear of criminal prosecution. In some cases, legislation extending amnesty also imposes harsher penalties on those who are eligible for amnesty but do not take it. State tax amnesty programs have been around for many years, but more states have used them recently due to shrinking state tax collections.
The following states have tax amnesty programs that are either currently in effect or will be in the near future: Alabama, Arizona, Connecticut, Louisiana, Massachusetts, New Jersey, Virginia. For more specific information on each state’s amnesty program, click here.