Florida Amnesty Program

Florida expects to generate $82.9 million in revenue from the state’s first amnesty program since 2003. House Bill 5801 was approved by both chambers on April 30, 2010, the closing day of the Florida Legislature’s 60-day session. It now awaits action by Florida Governor Charlie Crist.

House Bill 5801 directs the Florida Department of Revenue (“Department”) to conduct a tax amnesty from July 1 through September 30, 2010 applicable to tax liabilities due prior to July 1, 2010.

The Program will apply to all income taxes, sales and use taxes, motor vehicle taxes, estate taxes, gross receipts taxes, excise taxes on documents, taxes on intangible personal property, communications services taxes, severance taxes, and insurance premium taxes. It will not apply to local option taxes administered by local governments unless the local government elects to participate and notifies the Department by June 1, 2010.

All taxpayers are eligible for the Program, except those currently under criminal investigation, indictment, information, or prosecution regarding a Florida revenue law. Taxpayers who have entered into settlements of liability for state or local option taxes before July 1, 2010 are also ineligible to participate, whether or not full and complete payment of the settlement amount has been made.

Taxpayers who are under audit, inquiry, examination, or civil investigation by the Department may participate and are responsible for the full amount of tax due but receive a 25% reduction in interest. A taxpayer who initiates contact with the Department is responsible for the full amount of tax due but receives a 50% reduction in interest. Late penalties are waived on any tax paid pursuant to the Program.

Participating taxpayers are required to waive any right to claim a refund, protest, or initiate any administrative proceeding that challenges any assessment administered under the Program. Pre-existing protests or administrative or judicial proceedings must be dismissed. The bill permits the Department to rescind a grant of amnesty in the event of fraud, misrepresentation, or mutual mistake of fact.

Karen Lake
305-960-1202
klake@bdpb.com

North Carolina - Internet Transaction Resolution Program

The North Carolina Department of Revenue ("Department") recently announced the "Internet Transaction Resolution Program" ("Program") designed for remote sellers affected by the remote seller nexus law enacted by the State in August 2009.

Under the terms of the Program, as applied to eligible participating retailers, the Department will agree not to assess sales and use tax, franchise tax, penalties, and interest due prior to September 1, 2010. Also, the Department will agree not to excise its authority to obtain consumer information from retailers to collect tax liabilities for tax liabilities for periods prior to September 1, 2010.

To participate in the Program, eligible retailers must submit an election form to the Department not later than June 30, 2010. Any retailer that failed to register for the sales and use tax as a result of having operated an affiliate program in North Carolina at any time is eligible to particulate in the Program.

Karen Lake
klake@bdpb.com
305-960-1202

Arizona: Decouples From §108(i) and five year NOL carrrybacks

Arizona: New law updates Internal Revenue Code conformity date; decouples from §108(i) & five-year NOL carrybacks


Effective on 7/29/10, Arizona's decouples §108(i)& five-year NOL carrybacks.

Deferral of recognition of income from discharge of certain business indebtedness as enacted by the federal American Recovery and Reinvestment Act of 2009 (ARRA) under IRC Sec. 108(i), with necessary adjustments in current and future years provided in the addition and subtraction provisions for both individuals and businesses; and
Five-year net operating loss (NOL) carryback provisions for businesses under both the ARRA and the Worker, Homeownership, and Business Assistance Act of 2009 (WHBAA).