Originally published by The Legal Intelligencer
Our tax system is based on voluntary compliance. That is, the
principle that taxpayers voluntarily comply with the tax laws and
report their income and other tax items honestly. Some taxpayers,
including individuals and businesses, neglect to file their tax
returns and pay taxes due, at times because of unawareness,
complexity in the tax law or inability to pay. Additionally, some
returns are filed in error, resulting in the imposition of
additional tax, interest and penalties. Tax amnesty and voluntary
disclosure programs are designed with these taxpayers in mind.
Both tax amnesty and voluntary disclosure programs encourage
taxpayers to voluntarily file and pay back-taxes. In return, the
taxing authority will not criminally prosecute and will reduce, or
perhaps entirely waive, associated penalties, which often are
steep. In order to qualify for the waiver of penalties under the
typical amnesty program, the taxpayer
