California currently has a tax amnesty program. It has a little carrot and a BIG stick. If you haven’t filed (or are otherwise delinquent) for a tax year before 2003, you can file an amnesty application by March 31st; you then must file and pay your taxes by May 31st (June 30, 2006 if you file an installment agreement). Full details of the amnesty program are available on the FTB’s website. The FTB projected that the program would generate $550 million for California.
It won’t.
To date, according to this article in the San Francisco Business Times the state has received $25 million. While there will be quite a few applications received in the last two of the program (and perhaps another $100 – $200 million received by May 31st), the program doesn’t make sense for most taxpayers who haven’t paid. Why haven’t they paid? Because they don’t have money! And you expect them to come up with the money in two months?!?
When the amnesty program was announced last year, our local chapter of Enrolled Agents were unenthusiastic and thought it wouldn’t meet its’ goal. It appears we were right.