Last Chance to Apply for Tax Amnesty Program – Oct. 31, 2011

There is still time to participate in VCI 2, but you need to act now!  It takes time to assemble the disclosure package so please do not wait until you’re donning your Halloween outfit to get started.

Franchise Tax Board News Release:

Last Chance to Apply for Tax Amnesty Program Sacramento —

The Franchise Tax Board (FTB) today reminded taxpayers that Monday, October 31, is the deadline to participate in its Voluntary Compliance Initiative 2 (VCI 2) for taxpayers who may have underreported their tax liabilities through the use of abusive tax avoidance transactions or offshore financial arrangements.

The amnesty program, directed by recent legislation (SB 86, Ch. 14) is an opportunity for taxpayers to voluntarily amend their 2010 and prior year income tax returns. Participating taxpayers must pay both the tax and interest in full. In return, taxpayers receive a waiver of most penalties and avoid potential criminal prosecution.

Advancements in technology, reporting requirements, and the data sharing between agencies (including the IRS) has allowed FTB to better identify taxpayers who may have underreported their income due to these schemes. FTB encourages taxpayers who qualify for this initiative to participate rather than risk a full range of penalties, interest, and potential criminal prosecution.

Taxpayers wanting to participate must have amended returns and participation agreements postmarked or faxed by October 31, 2011. There are no extensions.