The tax amnesty program is an approved limited-time program by the IRS. It aims to encourage businesses and individual taxpayers with delinquent tax obligations to come forward voluntarily. This, of course, comes with certain benefits, including abatement of penalties and interests.


As a taxpayer, it’s important that you understand the tax amnesty program and international tax compliance if you live in Annapolis, MD or anywhere across the U.S. Here is some information on how the tax amnesty program can help settle back taxes, including its advantages and disadvantages.

How It Helps Taxpayers Settle Back Taxes

When it comes to back taxes, there are many ways to settle or delay payment. One is through the amended tax returns. This can be filed only if the IRS filed on the taxpayer’s behalf or if the taxpayer made errors in previous filings. Another option in the tax amnesty program: offer in compromise. If taxpayers meet the necessary guidelines, this will allow them to settle for less than the total unsettled amount.

As a taxpayer, if you are willing to make small monthly payments, you can choose a partial payment installment agreement. Uncollectible/hardship claim, on the other hand, offers a way to temporarily stop collection actions until your financial situation improves. For taxpayers who have acceptable reasons for noncompliance, you can waive the penalties through penalty abatement. U.S. International Tax Advisors can give you hand in determining the best course of action that you can take.

What Are Its Advantages and Disadvantages

While the tax amnesty program offers plenty of options to settle back taxes, it has its own set of advantages and disadvantages. Let’s start with its benefits. For one, when tax liabilities continue to be unpaid for years, you can obtain substantial amounts of penalties and interest. As a result, taxpayers will have enough penalty and interest abatements to retain the cash they could’ve paid. If you choose to file delinquent taxes through the amnesty program, you’ll encounter less scrutiny.

However, along with these advantages come the drawbacks. If you file under amnesty, you may be mandated to file and pay delinquent taxes for as far as the taxpayer’s liability extends. The term “statute of limitations” speaks of the maximum amount of time after the filing of the payment of a tax or a return. This means that when a taxpayer fails to file in a state, the statute of limitations never actually started. Without the statute of limitations, the taxpayer will never be fully compliant.

To better understand the tax amnesty program, we recommend that you get in touch with U.S. International Tax Advisors. We are the experts for international tax compliance in Washington, DC and surrounding areas, as well as nationally and for taxpayers living outside the U.S.

We don’t just answer questions. We give solutions to even the toughest tax compliance issues. If you need our assistance, simply call us at (844) 796-8565 or send us a message today.