Michigan officials detail tax amnesty campaign

By Tim Martin Associated Press LANSING (AP) -- Michigan treasury officials said Tuesday they expect a new tax amnesty program will net $88 million for the state while giving delinquent taxpayers a chance to avoid penalties. The state's $1.5 million public campaign to promote the program will feature TV, radio and other advertising aimed at reaching delinquent or forgetful taxpayers across the state. The ads are light-hearted, saying any excuse for nonpayment will be accepted -- such as "the dog ate it" and "it was too cloudy for my solar-powered calculator." The tax amnesty program is scheduled to run from May 15 through June 30, although delinquent taxpayers can begin the process immediately if they choose. The program was approved by state lawmakers last year in hopes of providing a boost to Michigan's struggling state budget. "All excuses are welcome," said Treasurer Andy Dillon, echoing a theme of the campaign. "It doesn't matter why you didn't pay your taxes." The amnesty program will be available for individual and business taxpayers covering return periods prior to 2010. Most state taxes are covered including the income tax, the sales tax, the Michigan Business Tax, tobacco taxes and fuel taxes. Penalties would be waived for those who pay the full amount of taxes and interest owed by June 30. Avoiding penalties could save some taxpayers 25 percent or more on their total bills and give them a clean slate moving forward. "It's a meaningful savings," Dillon said. Taxpayers who qualify also would avoid possible criminal prosecution by the state treasury department if they participate in the amnesty program. Those already involved in a tax-related criminal case aren't eligible for the program. The state knows about 200,000 delinquent taxpayers, including individuals and businesses, who could benefit from the program. There could be thousands more, including some who have never paid taxes, the state doesn't know about. A tax amnesty program in 2002 netted the state more than $30 million in new revenue. Treasury officials expect the new program will be more successful in part because it includes the advertising campaign. ---------------- Online: Michigan tax amnesty program: http:mitaxamnesty.org. Published: Thu, Apr 28, 2011