Missouri Residents Enjoy Temporary Tax Amnesty
Tax lawyers are often called on to help both individuals and businesses handle IRS-related matters. However, it seems as though lawmakers in Missouri have decided to offer a bit of relief for local residents themselves this year by introducing a special opportunity for taxpayers to settle old debts.
As per local news reports, a temporary tax amnesty program has kicked off in Missouri, allowing residents who owe back taxes 90 days to pay off their balance without having to worry about additional interest or IRS backlash. The program, which kicked off on Sept. 1, will run through November 30. Legislators estimate that around 350,000 taxpayers may qualify, and if so, will be able to pay off delinquent taxes that were initially due before December 31, 2014 – sans penalties.
According to State Representative Lindell Shumake, who also happens to own a tax preparation service, the tax amnesty program can offer some much needed relief for those who are struggling with serious tax debt and may end up being a chance to start fresh in the financial sense.
“Now [taxpayers] can settle up just for the amount of tax that they owe and forgo the additions, interests, penalties, which could all (add up) to a significant amount on a tax bill,” explained Shumake.
However, there is a caveat, and residents may still want to consult with a local Missouri tax attorney just to make sure nothing goes wrong and that they won’t end up owing more after all is said and done.
Apparently, taxpayers in Missouri who qualify and take advantage of the tax amnesty will have to make sure they pay their future taxes on time…for the next EIGHT years. That’s not necessarily unreasonable, but one of the top reasons why people fail to pay their taxes on time is because they don’t have the money to pay what they owe. Unless these particular taxpayers somehow manage to get their finances in order – and keep them in order – for the next eight years, the program may actually end up causing more harm than good.
Those who falter with their taxes in the next eight years may be ordered to pay additional interest and penalties on back taxes, which continue to accrue each year. Luckily, tax lawyers can help prevent this from happening by helping keep their clients’ taxes in order. Still, it’s hard to ignore the program’s potential for taxpayer backlash.
Interestingly, a large percentage of the funds that the program is expected to generate will go toward adult dental care for Missouri Medicaid recipients and additional reimbursements for medical provider rates. It’s refreshing to see a state program actually put money back into the hands of residents.
Anyone wishing to learn more about the 90-day tax amnesty program in Missouri can click here.
