Rhode Island Budget Bill Establishes Tax Amnesty Program

Merrill Barter, Managing Director, Tax Practice
June 2012

The State of Rhode Island’s fiscal year 2013 budget bill signed by the Governor on June 15 establishes a tax amnesty program applicable to all Rhode Island taxes.  The amnesty program presents a good opportunity for taxpayers with previously unaddressed tax liabilities to come forward.  The key components of the amnesty program are outlined below.

  • The amnesty program will be conducted for a 75-day period beginning on September 2, 2012 through November 15, 2012.
  • A taxpayer must apply in writing (application forms are being developed) and pay all taxes and interest due for any taxable period ending on or prior to December 31, 2011.
  • No penalties will be imposed, and the Tax Administrator will not seek the civil or criminal prosecution of any taxpayer for the taxable period for which amnesty has been granted.
  • Interest will be computed at the statutory rate reduced by 25%.
  • A taxpayer may enter into an installment agreement for reasons of financial hardship and upon terms and conditions set by the Tax Administrator.
  • The amnesty program will include a taxable period for which a bill or notice of deficiency determination has been sent to the taxpayer and a taxable period in which an audit has been completed but has not yet been billed.
  • Amnesty will not be granted to taxpayers who are under any criminal investigation or are a party to any civil or criminal proceeding, pending in any court of the United States or the state of Rhode Island, for fraud in relation to any state tax imposed by the law of the state and collected by the Tax Administrator.

This amnesty program allows all taxpayers (including corporations and individuals) to avoid paying penalties and the full amount of interest that otherwise would be due related to previous failures to file or pay taxes in Rhode Island.  Taxpayers who are unsure whether they should have filed returns in the state should strongly consider this opportunity. 

Merrill Barter is BNN’s state and local tax practice leader.  Please contact him if you would like additional information.

Disclaimer of Liability: This publication is intended to provide general information to our clients and friends. It does not constitute accounting, tax, or legal advice; nor is it intended to convey a thorough treatment of the subject matter.

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