Governor Culver has signed the tax amnesty bill, SF 580. The bill forgives penalties and 1/2 of the interest during the amnesty period, which runs from September 4 thorugh October 31 of this year. The one-time tax amnesty program allows people to pay late taxes with limited penalties and no criminal charges. The last time the state had a tax amnesty program was in 1986. That program brought in more than $35 million. The proposed program covers many taxes, including income and sales and allows people to pay back taxes without a penalty.

The new Iowa Amnesty Law requires that taxpayers who wish to take advantage of the amnesty must

• make a written application on a form to be created by the Iowa Department of Revenue;
• give up all administrative and judicial rights to challenge the imposition of the tax and its amount, except for adjustments made pursuant to a federal audit completed after the act's effective date;
• make payment in full of amounts due to Iowa for a tax covered by the tax amnesty program plus interest equal to fifty percent of the interest that is due;
• have paid all tax liabilities due the state and delinquent as of December 31, 2006.

Amnesty will not be granted to a taxpayer who is the subject of an active criminal investigation or who is a party to a criminal proceeding that is pending in a district court, the court of appeals, or the supreme court of this state if such investigation or proceeding involves nonpayment or fraud related to any Iowa tax.