Kentucky Tax Amnesty Program begins October 1, 2012!

Kentucky has announced that it will provide an Amnesty Program for taxpayers that owe back taxes, penalties, fees, and interest to Kentucky from tax bills due December 1, 2001 to October 1, 2011. 

From October 1, 2012 to November 30, 2012, taxpayers can apply for tax amnesty with the Kentucky Department of Revenue.

If taxpayers qualify, they will pay only the taxes owed and half of the interest.  Kentucky will waive all penalties and fees and the other half of the interest on the taxpayer's bill.

Who is Eligible for Amnesty?

1. Taxpayers who did not file a required return for Amnesty eligible tax periods. 
2. Taxpayers who are amending the tax liability on a previously filed tax return for Amnesty eligible tax periods.
3. Taxpayers who have an outstanding tax liability for Amnesty eligible tax periods.
4. Taxpayers who have omitted personal or public service property for Amnesty eligible tax periods.

What if You Don't Take Advantage of Amnesty Program?

1. Cost of collection fee of 25% on all taxes which are or become due and owing for any reporting period, regardless of when due.
2. Taxes which are assessed and collected after the amnesty period for taxable periods ending or transactions occurring prior to October 1, 2011, shall be charged an assessment fee of 25% at the time of assessment.
3. The addition of a 50% fee for non-filed returns, eligible for Tax Amnesty
4. Increased interest (2%) on all Tax Amnesty eligible bills not paid during amnesty
5. Additional 25% fee on amnesty eligible liabilities discovered through audit

For more info, go to Kentucky Amnesty.

If you are thinking about utilizing the Amnesty program, please consider Kentucky's Voluntary Disclosure Program and speak to a qualified multistate tax consultant to determine which path makes the most sense.

"Good Enough for Government Work"

My dad was not just a "handyman," but was "the" handyman.  He could work on anything, fix anything and he had every tool known to mankind.  He had a huge workshop with 10 million screwdrivers, hammers, wrenches, saws, etc. (no exaggeration, I counted).

When I was a kid, it seemed like every Saturday he would be working on a project, and I would be pulled in to assist. 

I don't know about your experience, but every project we worked on wasn't easy.  What started out as an easy project often turned into a problem.  Something wouldn't loosen or something wouldn't tighten, something was too big, something was too small, the right tool wasn't acting like the right tool, and so on and so on.  As one problem would get solved, another one would appear like magic. 

In any case, at some point at the end of the project, after all of the problems were resolved (usually using some type of creativity), my dad would often say, "good enough for government work."  Now, I must clarify that my dad did not mean any offense to government work or government workers.  However, when my dad made this statement he was saying that the project was complete, albeit not perfectly, but it was done to a level that was atleast satisfactory or would do the job.  Today, every time I work on a home improvement project, that phrase comes into my head.  I can hear my dad's voice. 

In regards to state and local taxes, it sometimes feels as though each project (compliance, controversy, planning, etc.) runs into problem after problem.  What you think should be simple and straight forward turns into a complex and difficult maze to navigate.  When you get to the end of the project, you often feel like settling or in other words, saying "good enough for government work." 

Based on my experience, I highly recommend you don't take that approach.  Don't settle for satisfactory, but dig in, back-up, take a breath and look at your project from a different angle.  At the end of the project, when you are exhausted, a little extra effort could reap valuable benefits for you and your company or client.

Personal note:  Today would have been my dad's 71st birthday.  He died on March 11, 2008 due to lung cancer.  He never smoked a day in his life.  The doctors said he got it from second-hand smoke.  Don't smoke.  Protect yourself and those around you. 

Happy Birthday Dad!!! I miss you so much.

District of Columbia Extends Deadline for Combined Report!!

If your company or your client is required to file a combined report to the District of Columbia, you now have until October 15, 2012 to file.  The original deadline was September 17, 2012.

According to DC's website, effective for tax years beginning on or after December 31, 2010, a taxpayer corporation that is a member of a combined group and that must report income derived from the activities of that group in a combined report ("combined reporting filer") on September 17, 2012, may receive an automatic extension until October 15, 2012, in lieu of the six-month extension allowed to filers under DC Official Code § 47-1805.03(b), to file its combined report.

Final combined reporting regulations are expected to become effective September 14, 2012. To ensure that each entity included in the combined report is properly reported, determined, computed, assessed, collected, or adjusted, OTR, pursuant to the authority in DC Official Code § 47-1805.02a(d) finds that allowing combined reporting filers extra time in which to file is reasonable in light of the significant and complex tax law change in the District and the compliance challenges for combined reporting filers.

The Second Notice of Proposed Rulemaking issued on August 31, 2012 will be amended to reflect the above extension.

Are You "Whipped"?

I hope each of you are having a great Labor Day weekend. 

I just got back from a vacation in the Outer Banks.  It was a week long of relaxation.  In fact, I was so relaxed that it felt as if we were gone for a month, not a week.

As I posted last month, I just celebrated my 20 year wedding anniversary.  Like most married men, I do a lot for my family and my wife.  But I also think I might do some things that some men wouldn't do, such as vacuuming the house, going antique shopping, spending my free time with my wife and kids (and not golfing).  In fact, I spend all of my free time with my wife and kids, except for my stress reliever of choice - bodybuilding (weightlifing and running).  Sometimes I wonder if I am "whipped."  Actually, I know I am "whipped."  I think I was "whipped" 22 years ago when my wife and I met. 

What do I mean by "whipped"?  Well, I don't mean it in a bad way.  I think it just means that you love your wife or family more than yourself.  That you would do anything for them.  That you would rather spend your time with them than doing other things. 

A wife of a good friend of mine recently had a birthday.  My friend went all out for his wife's birthday.  Buying fancy jewelry, flowers, dinner, and some other things I can't remember.  I told him it sounded like he was "whipped" like me.  He responded, "yes, very whipped."

Now, you are probably thinking - what does this have to do with state and local taxes.  Well, as a company operating in multiple jurisdictions you can often feel like you are "whipped."  For example, the compliance burden may feel out of control, trying to keep up with the daily legislation, court rulings, etc. may seem like a daunting challenge, and audits may seem to pop up when you least expect it demanding your time (and your money).

If you feel "whipped" by your state and local tax burden, hit the "reset button" and get control.  Unlike being "whipped" by your spouse, being "whipped" by state and local taxes is no fun.