Oklahoma ~ Multiple Taxes: Voluntary Disclosure Initiative Enacted

CCH Tax Day Report

Recently enacted legislation authorizes and directs the Oklahoma Tax Commission to establish a voluntary compliance initiative for specified eligible taxes. Eligible taxpayers would be entitled to a waiver of penalty, interest, or other collection fees due on the eligible taxes if the taxpayer voluntarily files returns and pays taxes due during the course of the initiative, which would be limited to the period beginning on September 1, 2017, and ending November 30, 2017. The Tax Commission must limit the lookback period for which additional taxes may be assessed to three taxable years for annually filed taxes or 36 months for taxes that do not have an annual filing frequency.

Eligible taxes would include:

— mixed beverage tax,

— gasoline and diesel tax,

— gross production and petroleum excise tax,

— sales and use taxes,

— corporate and personal income taxes, and

— personal withholding tax.

To be eligible to participate, taxpayers must not have outstanding tax liabilities other than those reported under the initiative; must not have been contacted by the commission with respect to the obligation to file a return or make a payment; must not have collected taxes from others, such as sales and use taxes or payroll taxes, and not reported those taxes; and must not have entered into a voluntary disclosure agreement for the type of tax owed within the preceding three years.

Taxpayers who have collected taxes from others, such as sales and use taxes or payroll taxes, and not reported those taxes, would be eligible to enter into a modified voluntary disclosure agreement (VDA). Modified VDAs would be the same as a VDA except that interest waivers may be optionally granted at the discretion of the commission, and the lookback period would be extended beyond the three-year or 36-month period for VDAs to include all periods in which tax has been collected but not remitted.

H.B. 2380, Laws 2017, effective July 1, 2017

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