Q&A with Sheppard F. Miers Jr.

Friday, October 20, 2017 | by Paula Burkes

Some delinquent taxpayers can save penalties, interest under one-time initiative

Q: What is the Oklahoma Tax Commissions (OTC) voluntary disclosure initiative?

A: The OTC is waiving penalties and interest on some delinquent tax returns and
payment of taxes for qualifying taxpayers. This is a result of House Bill 2380, passed
by the Oklahoma Legislature during the 2017 legislative session. It has authorized a
one-time, voluntary disclosure initiative (VDI) for delinquent tax returns and taxes.
The program is effective between Sept. 1 and Nov. 30. However, the VDI program
only applies to certain types of delinquent Oklahoma taxes and taxpayers must
meet specific eligibility requirements.

Q: Which taxpayers are eligible?

A: Those eligible are individuals and businesses who owe any specified eligible taxes for any tax period prior to
Sept. 1 (prior to Jan. 1, 2016 for income taxes) and only if the business or individual:
Doesnt have outstanding tax liabilities other than those reported taxes eligible under the VDI program.
Hasnt been contacted by the OTC or a third party acting on behalf of the OTC with respect to the potential or
actual obligation to file a return and make a payment to the state.
Hasnt collected the tax from others, such as sales or payroll taxes, and not reported those taxes.
Hasnt within the preceding three years, entered into a voluntary disclosure agreement or amnesty program
for the type of tax owed.

Q: What taxes are eligible?

A: The VDI program offers penalties and interest relief for the following delinquent taxes due from the previous
36 months: Income tax, mixed beverage tax, gasoline and diesel tax, gross production and petroleum excise
tax, and use tax. Sales and withholding taxes are eligible if they havent been collected from others.

Q: How does a taxpayer take part in the VDI?

A: Participation in the VDI program requires preparation and filing of the delinquent returns for eligible delin-
quent taxes with the OTC. The returns, along with payment of the tax indicated due thereon, must be mailed
to the OTC to ensure receipt by the OTC by Nov. 30. If payment of unpaid delinquent taxes involved cant be
made in full, they can be paid through a six-month installment payment plan, provided the returns are filed
and a down payment of 10 percent of the unpaid tax is made with a payment plan request.

Q: Do you have any other suggestions?

A: Businesses and individuals who believe they may qualify for relief under the VDI program would be well
advised to consult with an attorney or accountant to determine if delinquent tax return and payment facts and
circumstances covered by the VDI program exist, theres eligibility for participating in it, and its effect before
doing anything further. All of the requirements and conditions of the VDI program stated in the law and OTC
rules and published guidance should be considered very carefully before contacting the OTC or taking any
action intended to start participation in the VDI program. This is because the VDI program provides taxpayer
relief only in accordance with the specific detailed conditions stated in the law and the OTC published rules
and guidelines. Coming within those specific conditions and requirements may be subject to some uncertain-
ty depending on the particular facts and circumstances involved for a taxpayer. A taxpayer may need to take
alternative steps to address and remedy delinquent tax issues and achieve compliance with the reporting and
payment of Oklahoma taxes as required by law.