The Virginia General Assembly recently enacted three provisions authorizing the Tax Commissioner to oversee the Virginia Tax Amnesty Program:  Item 3-5.17 of House Bill 1500, House Bill 2246 and Senate Bill 1438 (2017 Acts of Assembly, Chapters 836, 53 and 433), which authorize the Tax Commissioner to oversee the Virginia Tax Amnesty Program.  

Under the legislation, the Virginia Tax Amnesty Program will be administered by the Department of Taxation for a period ranging between 60 and 75 days during Fiscal Year 2018. All penalties and 50 percent of the interest will be waived upon payment of the taxpayer's remaining balance. At the conclusion of the amnesty period, any remaining amnesty-qualified liabilities will be assessed an additional 20 percent penalty. 

With certain exceptions, any taxpayer who currently has an outstanding assessment, or has not filed a return for any tax administered by the Department, may apply for amnesty. The following taxpayers would not be eligible to participate in the tax amnesty program:

  • Any taxpayer currently under investigation or prosecution for filing a fraudulent return or failing to file a return with the intent to evade tax;
  • Any taxpayer with an assessment date or due date for an unfiled return less than 90 days prior to the first day of the amnesty program;
  • Any taxpayer with an individual, fiduciary or corporate income tax liability for Taxable Year 2016 or after; and
  • Any taxpayer with respect to a tax liability attributable to an issue that is the subject of a decision of a Virginia court rendered on or after January 1, 2016.

The Department is in the process of developing guidelines for the procedures regarding participation in the Virginia Tax Amnesty Program. A draft of the guidelines has been sent to interested parties.  This draft describes the procedures and other elements of the amnesty program, but does not contain the dates of the program, or deadlines that are related to those dates, because the dates of the amnesty program have not yet been established.  If you have any comments on the draft please submit them via email to tax-guidelines@tax.virginia.gov by the close of business on July 31, 2017. 

Legislative Documents

House Bill 2246 (2017 Acts, ch. 53)

Senate Bill 1438 (2017 Acts, ch. 433)

Item 3-5.17 of the 2017 Appropriations Act (House Bill 1500, Chapter 836)

Guideline Development Documents