Oklahoma § 68-220 - Waiver or remission of interest or penalties - Voluntary

§ 68-220. Waiver or remission of interest or penalties - Voluntary

disclosure agreements.

A. The interest or penalty or any portion thereof ordinarily

accruing by reason of a taxpayer's failure to file a report or

return or failure to file a report or return in the correct form as

required by any state tax law or by this Code or to pay a state tax

within the statutory period allowed for its payment may be waived or

remitted by the Oklahoma Tax Commission or its designee provided the

taxpayer's failure to file a report or return or to pay the tax is

satisfactorily explained to the Tax Commission or such designee, or

provided such failure has resulted from a mistake by the taxpayer of

either the law or the facts subjecting him to such tax, or inability

to pay such interest or penalty resulting from insolvency.

B. Except as otherwise provided by subsections C and D of this

section, the waiver or remission of all or any part of any such

interest or penalties in excess of Twenty-five Thousand Dollars

($25,000.00) shall not become effective unless approved by one of

the judges of the district court of Oklahoma County after a full

hearing thereon.

The application for the approval of such waiver or remission

shall be filed in the office of the court clerk of the court at

least twenty (20) days prior to the entry of the order of the judge

finally approving or disapproving the waiver or remission. The

order so entered shall be a final order of the district court of the

county.

C. Taxpayers who (1) do not have outstanding tax liabilities

other than those reported pursuant to a voluntary disclosure

agreement, (2) have not been contacted by the Oklahoma Tax

Commission with respect to the taxpayer's potential or actual

obligation to file a return or make a payment to the state, (3) have

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

payroll taxes, and not reported those taxes, and (4) have not within

the preceding three (3) years entered into a voluntary disclosure

agreement for the type of tax owed may enter into a voluntary

disclosure agreement with the Tax Commission in order to report a

state tax liability owed by the taxpayer. Taxpayers 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 as is provided in subsection F of

this section provided that they meet all the other requirements

provided in this subsection. If the Tax Commission agrees with the

proposed terms for payment of the principal amount of tax due and

owing, the penalty 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 amount and fifty percent (50%) of the

otherwise applicable interest amount shall be waived by operation of

Oklahoma Statutes - Title 68. Revenue and Taxation

law and no further action by the Tax Commission or by the taxpayer

shall be required for the waiver of such interest amount.

D. The Tax Commission shall limit the period for which

additional taxes may be assessed (the lookback period) to three (3)

taxable years for annually filed taxes or thirty-six (36) months for

taxes that do not have an annual filing frequency.

E. Voluntary disclosure agreements may be denied or nullified

by the Tax Commission if a taxpayer's failure to report or pay is

determined to be the result of a pattern of intentional or gross

negligence regarding compliance with the laws.

F. Taxpayers who meet all of the qualifications specified in

subsection C 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.

G. The provisions of a modified voluntary disclosure agreement

shall be the same as a voluntary disclosure agreement as specified

in subsection C of this section, except that (1) waiver of interest

shall not apply except as may be optionally granted at the

discretion of the Tax Commission, and (2) the period for which taxes

must be reported and remitted is extended beyond the three-year or

thirty-six-month period provided in subsection C of this section to

include all periods in which tax has been collected but not

remitted.

Added by Laws 1965, c. 414, § 2, emerg. eff. July 7, 1965. Amended

by Laws 1989, c. 249, § 10, eff. July 1, 1989; Laws 1993, c. 146, §

10; Laws 1997, c. 294, § 9, eff. July 1, 1997; Laws 2005, c. 362, §

3, eff. Nov. 1, 2005; Laws 2017, c. 310, § 1, eff. Nov. 1, 2017.