The Virginian-Pilot
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Virginia has collected $103 million in delinquent taxes so far from a recently completed amnesty program, Gov. Timothy M. Kaine said Thursday.
That's more than twice what it expected. The state's Department of Taxation projected that it would raise $41 million when it launched the two-month "Get Square" program in October.
Much of the delinquent tax revenue, including some from million-dollar checks, poured in during the last few days of the program, said Joel Davidson, a spokesman for the department. The amnesty ran through Dec. 5, and "we still have more money coming in," he said. The program allowed individuals and businesses to pay delinquent taxes without having to pay the normal penalty. In addition, participants had to pay only half the interest routinely charged on delinquent taxes.
Some tax professionals predicted earlier this year that a weak economy might dampen participation in Virginia's amnesty program.
Davidson attributed the better-than-expected collection in part to the Tax Department's communication with individuals and businesses that were eligible. In addition to notifying more than 500,000 households and businesses of the amounts owed and what they faced in penalties, the department followed up with phone calls to those who didn't respond, he said.
The program also allowed individuals who lacked the money to pay what they owed to work out payment plans with the department, he said.
Several other states, including Maryland, Louisiana and Oregon, have resorted to amnesty programs this year as a way to generate badly needed tax revenue. The General Assembly authorized the use of an amnesty program in the current fiscal year. Virginia has used tax-amnesty programs twice before. A program in 2003 brought in $98.3 million of back taxes.
Tom Shean, (757) 446-2379, tom.shean@pilotonline.com
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tax amnesty
Heres my tax amnesty story. I moved from VA Beach in 98 and paid my VA 97 state taxes that year. The state knew where I lived because I am a retired state employee and my retirement goes into my checking account here in sunny Florida. In March of 09 I received a collection letter from an agency stating I owed back taxes for 97 with interest and penalties.I contacted the office of taxation and spoke with a very nice guy who indicated it had been written off and do not worry about it. I contacted the collection agency and they basically threatened me. I called the department of taxation again and requested a copy of their calculations stating I would be willing to pay any taxes owed but asked for forgiveness on the interest and penalty. All I received from them was a letter stating their calculations were correct.I have documented all calls and names. Finally I just gave up and paid the amnesty amount.Any body who has gone through this knows what I'm talking about.The final issue is they sat on their butts and waited till interest and penalties accrued. Then they try and strong arm you with threats to your credit. I Hope they choke on it, or if they have trouble swallowing I would
thats alot of money!
wow! 103 million.so tell us what should the real amount total? should i now, not pay my taxes and get a discount, meanwhile Joe"the sucker" taxpayer, pays full price. where is the logic? this will only encourage others to do the same.and the original offenders,to do it again. thanks Timmy!
Slightly Off topic...
Comprehension is Key: you can take your receipt back to most stores if an item that you purchased goes on sale up to 30 days after you purchase it. I've done it many times at the bigger chain stores...Home Depot, Target, etc. Saved over $100 on a generator once. Sorry I know this is off topic!
Lower taxes and smaller
Lower taxes and smaller penalties generating more revenue, who would have thought? Oh that's right, conservatives.
Feeling A Bit Jipped
I think it's great that the state was able to recover more revenue then they expected, which surely will help with the state's budget. Only one thing isn't sitting well with me about this program. What about people who, like me, owed state taxes for 2008 and had to rearrange budgets and do without in order to pay the money back in installments, -including- the penalty and late fees accrued? Due to spousal support not being taxed until year's end, I owed taxes like those who used the amnesty program. The only difference was, I paid them -and- the penalties and fees in the early months of 2009. I'm on a tight budget, like most people these days. It wasn't easy to be responsible and pay the money back as early as possible. Yet, I've not heard anything about people who did so before the program was announced getting any refund of their penalties and fees. So yeah, I feel like I got jipped for doing the right thing. It seems that alot of relief programs favor those who are irresponsible instead of everyone. What's truely being encouraged here?
What About Us Who Pay Our Taxes?
Something is wrong with this picture!!!!! What about the person who has to pay his taxes on installments plus interest because he is financially strapped? This tells not pay my taxes and just wait on amensty and use my money for other things. Only in VA does it take 15 people to fix a pothole. One working and 14 looking on!!!!
I can understand your point
I can understand your point, but it's a bit like saying "Why didn't that product go on sale two weeks ago. That's when I bought it, and now I've paid full price". You didn't get the sale price simply because it wasn't on sale.
There's no way to please everyone unless the program is grandfathered back to allow anyone still living to have refund paid penalties on overdue taxes. Of course I have little doubt you'd have the estates of the deceased screaming about it even then. Nothing more than recovering greater amounts of revenue is being encouraged here, as there are no guarantees there will ever be another amnesty program offered.
Per Virginia Department of
Per Virginia Department of Taxation, the amensity was for people that owed taxes prior to tax year 2008. I also wanted to take advantage of this program, but since I only owe for 2008 I was not eligible. So in essence you was not jipped; however, I feel I was. Guess this is just another way for them to collect interest and penalties on the money I owe!
Thanks!
Thanks for pointing out the specifics. I appreciate it, as now I don't feel entirely like I've been suckered by being timely. It was beginning to feel like the only people getting a break were ones purposely not living within their means and handling their money and life-styles responsibly (ie. accepting mortgages they knew they couldn't afford, ect). It's against my character morals to purposely be irresponsible with loans, bills, or taxes -- but boy was it looking like the right road to take if I wanted a free ride! LoL