Late taxes can now be repaid without interest or penalties
JEFFERSON CITY - Individuals and businesses that are behind on tax payments now have the opportunity to pay back taxes without penalties or interest during Missouri's temporary amnesty program.
The program, authorized by a Missouri bill, began Tuesday and runs through Nov. 30. Similar tax amnesties exist this year in Kansas, Indiana, Maryland and Oklahoma.
Anita Parks, an H&R Block Master Tax Adviser Enrolled Agent, said people frequently miss tax deadlines.
The Missouri Department of Revenue estimates around 350,000 taxpayers could be eligible for the program. Tax types that are eligible for the amnesty are individual income tax, corporate income tax, corporate franchise tax, employer withholding tax, sales tax, consumer's use tax, vendor's use tax and fiduciary tax.
When people or businesses fail to meet tax deadlines, interest and penalties accrue daily on any unpaid balances. Through this program, people that owe taxes from Dec. 31, 2014 or earlier can pay those taxes without having to pay the accumulated interest.
"Anybody that does owe taxes should take advantage of this because, once the deadline is gone, which is October 15 for the state of Kansas and November 30 for the state of Missouri, then they will be subject to full penalties and interest," Parks said.
The Missouri Department of Revenue expects to collect $75 million for the state.
Parks recommends completing the amnesty application sooner rather than later.
"The sooner they get this done, the better because once they miss the deadlines then they are subject to full penalties and interest," Parks said.
To apply for the amnesty, visit The Missouri Department of Revenue's website or call 573-751-7200.