Tax Alert: Los Angeles Enacts Tax Amnesty Program
6/22/2009
The City of Los Angeles has instituted a tax penalty amnesty program for a variety of delinquent city taxes. The program, which began May 1, 2009 and is set to expire July 31, 2009, gives taxpayers the opportunity to avoid the imposition of penalties imposed as a result of non-reporting, underreporting, underpaying or not paying the following taxes:
- Business taxes
- Commercial tenants occupancy taxes
- Transient occupancy taxes
- Parking occupancy taxes
- Telephone, electricity, and gas users taxes
Penalties can be as high as 40 percent of the delinquent tax balance.
To qualify for the amnesty program, taxpayers must file an application during the specified dates listed above and meet the following two conditions:
1. File completed tax statements or returns for all periods and tax types the taxpayer has not previously filed and/or file amended statements or returns for all periods for which the taxpayer underreported the tax due.
2. Pay in full all tax, interest, and any applicable fees (excluding penalties) due.
The amnesty application form is available at the City of Los Angeles Tax Penalty Amnesty Program website: www.lacity.org/finance/amnesty
For more information, contact your J.H. Cohn service professional at 877-704-3500.
Circular 230 Notice: In compliance with U.S. Treasury Regulations, the information included herein (or in any attachment) is not intended or written to be used, for the purpose of i) avoiding penalties the IRS and others may impose on the taxpayer or ii) promoting, marketing or recommending to another party any tax related matters.