The fiscal year 2018 budget recently signed by Rhode Island Governor Gina Raimondo provides delinquent taxpayers with an opportunity to come into compliance with their Rhode Island tax obligations and settle back taxes.  Open to all taxpayers and all types of Rhode Island taxes, the amnesty program will enable taxpayers to pay back taxes while waiving all penalties and reducing the state’s late payment interest rate from 18% to 13.5%.  Amnesty applications will be accepted from December 1, 2017 until February 15, 2018.  All tax periods ending on or before December 1, 2016 are eligible to participate in this amnesty program.            

For taxpayers with past due Rhode Island tax obligations, the General Assembly’s new amnesty program represents a cost-effective solution to achieve state tax compliance.  The penalty waiver and 25% interest rate reduction – combined with the Division’s agreement to not prosecute disclosing taxpayers accepted into the program – create a compelling opportunity to settle Rhode Island taxes.            

Taxpayers seeking an opportunity to address past due Rhode Island taxes should begin planning now.  The tax attorneys at McLaughlinQuinn LLC work with clients confronted with Rhode Island tax issues on a daily basis and look forward to helping taxpayers achieve state tax compliance through this new amnesty program.            

For more information on this client alert, please contact Thomas P. Quinn, Esq., Partner or Kathryn S. Windsor, Esq., Senior Tax Counsel.