State Tax Assessment
Wednesday, March 24, 2004
Corporate tax plan moving in Annapolis (MD)
by Catherine Dolinski, the Gazette
"Bills to reform Maryland's corporate tax structure have jumped on the fast track amid complaints from businesses and the release of a report from the state comptroller showing that two-thirds of the state's largest companies paid no corporate income tax in 2001 and 2002.
On Friday, the Senate passed Gov. Robert L. Ehrlich Jr.'s bill to close the so-called Delaware holding company tax loophole. An even tougher version of the bill, barren of amnesty and other business-friendly provisions, was approved by the House on Tuesday."
| COMMENT: The reform bills making their way through the Maryland legislature are designed to facilitate the Comptroller's crackdown without spending years in court. Our News & Comment for February 23 reported that the Comptroller targeted nearly 240 businesses regarding the Delaware holding company loophole. The Attorney General claimed to have 112 lawyers ready to litigate. On March 2, we reported that only two businesses (out of 240) took advantage of an amnesty program that waived penalties on taxpayers who admitted they used Delaware tax shelters and paid their back Maryland taxes. It is uncertain whether the Senate version (with amnesty provisions) or the tougher House version (without amnesty) will become law. Now may be a good time to negotiate a "Private Amnesty" with the state. Ask the experts at State Tax Central for more details. |
Monday, March 22, 2004
State Amnesty Program Collects $805,000 From New Taxpayers
KXMA News, North Dakota
"Tax Commissioner Rick Clayburgh says the program gave taxpayers a chance to pay late taxes without having to pay tax penalties. They could also pay less interest on the taxes they owed.
Clayburgh says 185 new taxpayers filed tax returns under the program -- and paid $805,000 in taxes."
COMMENT:
The $800,000 collected from new taxpayers was only the tip of the iceberg. The real benefit to the state was the more than $6 MILLION collected from taxpayers under audit who were disputing their tax assessments. The penalty waiver and interest reduction encouraged them to settle their disputed accounts and resulted in accelerated collections for the state without having to litigate. Truely a Win-Win situation for the state and the taxpayers.
The Amnesty period ended Saturday, January 31, 2004. In order to qualify for Tax Amnesty, applications and payments had to be postmarked by January 31, 2004. Amnesty applications and payments postmarked after that date will not be accepted. If you missed the deadline, contact us regarding our ongoing "Private Amnesty" negotiation and settlement programs.
