Delinquent Maryland Taxpayers Urged to `Seek Amnesty' During 2-Month Tax Amnesty Period; Stricter Enforcement to Begin Nov. 1 for Individuals and Companies Owing Maryland Taxes.

Business Editors

ANNAPOLIS, Md.--(BUSINESS WIRE)--Aug. 28, 2001

Maryland Comptroller William Donald Schaefer today announced that a two-month tax amnesty period beginning September 1 gives delinquent taxpayers a last-ditch opportunity to pay their back taxes and interest without paying a civil or criminal penalty.

Schaefer warned, however, that those who fail to take advantage of this amnesty period face stiffer fines and possible jail sentences if they have not reported, not paid, or have underreported their tax liabilities prior to December 31, 2000.

Maryland Tax Amnesty begins September 1, 2001, and ends October 31, 2001. Taxpayers who qualify for Tax Amnesty include those who have failed to file a return or pay eligible tax liabilities due on or before December 31, 2000, or have underreported taxes due on or before that date.

Taxpayers under criminal investigation by the Attorney General's Office, a state prosecutor, or a state's attorney are not eligible for amnesty from criminal prosecution.

Individuals and businesses failing to settle delinquent state taxes during the Tax Amnesty period face legal actions that could include criminal consequences. Effective November 1, fines will increase from $5,000 to $10,000 for each violation, and there are also provisions for up to five years in jail.

As provided in legislation passed earlier this year by the Maryland General Assembly, the Comptroller's Office will begin an aggressive enforcement effort using new, state-of-the art technologies that will greatly enhance identifying and locating taxpayers who neglect to file or underreport income, sales or withholding taxes.

In addition, the Comptroller's Office will add audit, enforcement, and collection personnel and will increase criminal prosecutions.

The following taxes are eligible for Tax Amnesty:

-- Personal Income Tax

-- Employer Withholding Tax

-- Corporate Income Tax

-- Sales and Use Tax

-- Admissions and Amusement Tax

"We believe that thousands of delinquent taxpayers will take advantage of this Tax Amnesty opportunity," Comptroller Schaefer said. "Taxpayers who choose not to participate should be aware that severe criminal and civil penalties go into effect immediately following the Tax Amnesty period."

Revenue collected during the Tax Amnesty period will be distributed as follows:

-- $2 million for hiring additional tax compliance and

enforcement personnel and for publicizing the amnesty program.

-- $8 million to provide grants for public education.

-- $10 million to the Volunteer Fire Company Assistance Fund.

-- $30 million to the state's General Fund.

The Comptroller's Office is attempting to notify those eligible for the Tax Amnesty program about how much they owe in back taxes and interest and the amount of penalty to be avoided under the Amnesty program. In addition, a widespread advertising and public relations campaign will urge those eligible to "Seek Amnesty."

The only previous Tax Amnesty period in Maryland was held in 1987. "Maryland taxpayers should have no expectation that Tax Amnesty will be offered again," Comptroller Schaefer said. "Delinquent taxpayers should come forward and take advantage of this limited opportunity."

To obtain a Tax Amnesty application and tax forms, visit www.marylandtaxes.com or call 410/260-7980 from central Maryland, or 800/MD-TAXES from elsewhere. E-mail requests for forms to: [e-mail]. Written requests for applications and forms should be sent to AMNESTY - FORMS REQUEST, Comptroller of Maryland, P.O. Box 1829, Annapolis, MD 21404-1829.