Oklahoma § 68-216.4 - Voluntary Disclosure Initiative

§ 68-216.4. Voluntary Disclosure Initiative

A. For the purpose of encouraging the voluntary disclosure and

payment of taxes owed to this state, the Oklahoma Tax Commission is

hereby authorized and directed to establish a Voluntary Disclosure

Initiative for eligible taxes, as provided in this section. A

taxpayer shall be entitled to a waiver of penalty, interest and

other collection fees due on eligible taxes if the taxpayer

voluntarily files delinquent tax returns and pays the taxes due

during the disclosure initiative. The time in which a voluntary

payment of tax liability may be made or the taxpayer may enter into

a payment program acceptable to the Tax Commission for payment of

the unpaid taxes in full in the manner and time established in a

written payment program agreement between the Tax Commission and the

taxpayer under the Voluntary Disclosure Initiative is limited to the

period beginning September 1, 2017, and ending November 30, 2017.

B. Upon payment of the eligible taxes under the Voluntary

Disclosure Initiative established, the Tax Commission shall abate

and not seek to collect any interest, penalties or collection fees

that would otherwise be applicable.

C. As used in this section, "eligible taxes" shall include the

following taxes that were due and payable for any tax period or

periods ending prior to entering into an agreement as provided in

the initiative except as provided in this subsection:

1. Mixed beverage tax levied pursuant to Section 576 of Title

37 of the Oklahoma Statutes;

2. Gasoline and diesel tax levied pursuant to Section 500.4 of

Title 68 of the Oklahoma Statutes;

3. Gross production and petroleum excise tax levied pursuant to

Sections 1001, 1101 and 1102 of Title 68 of the Oklahoma Statutes;

Oklahoma Statutes - Title 68. Revenue and Taxation

4. Sales tax levied pursuant to Section 1354 of Title 68 of the

Oklahoma Statutes;

5. Use tax levied pursuant to Section 1402 of Title 68 of the

Oklahoma Statutes;

6. Income tax levied pursuant to Section 2355 of Title 68 of

the Oklahoma Statutes for tax periods ending prior to January 1,

2016; and

7. Withholding tax levied pursuant to Section 2385.2 of Title

68 of the Oklahoma Statutes.

D. To be eligible to participate in this initiative, taxpayers

must:

1. Not have outstanding tax liabilities other than those

reported pursuant to this initiative;

2. Not have been contacted by the Oklahoma Tax Commission, or

third party acting on behalf of the Commission, with respect to the

taxpayer's potential or actual obligation to file a return or make a

payment to the state;

3. Not have collected taxes from others, such as sales and use

taxes or payroll taxes, and not reported those taxes; and

4. Not have, within the preceding three (3) years, entered into

a voluntary disclosure agreement for the type of tax owed.

E. If the Tax Commission agrees with the proposed terms for

payment of the principal amount of tax due and owing, the penalties

and interest otherwise imposed by law upon the principal amount

shall be waived by operation of law and no further action by the Tax

Commission or by the taxpayer shall be required for the waiver of

such penalty and applicable interest.

F. The Tax Commission shall limit the period for which

additional taxes may be assessed to three (3) taxable years for

annually filed taxes or thirty-six (36) months for taxes that do not

have an annual filing frequency.

G. Taxpayers who meet all of the qualifications specified in

subsection D of this section, except those who have collected taxes

from others, such as sales and use taxes or payroll taxes, and not

reported those taxes, may enter into a modified voluntary disclosure

agreement.

H. The provisions of a modified voluntary disclosure agreement

shall be the same as a voluntary disclosure agreement as specified

in subsection E of this section; provided, the waiver of interest

shall not apply except as may be optionally granted at the

discretion of the Tax Commission, and the period for which taxes

must be reported and remitted or assessed is extended beyond the

three-year or thirty-six-month period provided in subsection F of

this section to include all periods in which tax has been collected

but not remitted.

I. The waiver of penalty and interest provided herein is fully

effective provided taxpayer continues payment or collection and

Oklahoma Statutes - Title 68. Revenue and Taxation

remittance of applicable taxes, as required by law, for a period of

one (1) year after the tax period(s) for which taxes were paid

pursuant to this initiative.

J. The Tax Commission is authorized to expend necessary

available funds, including contracting with third parties, to

publicly advertise, assist in the collection of eligible taxes, and

administer the Voluntary Disclosure Initiative and shall be exempt

from the provisions of Section 85.7 of Title 74 of the Oklahoma

Statutes for the purpose of implementing this section.

K. The Tax Commission is authorized to promulgate rules

detailing the terms and other conditions of this program.

Added by Laws 2017, c. 327, § 1, eff. July 1, 2017.