                                 CODE OF VIRGINIA

VIRGINIA TAX AMNESTY PROGRAM (§ 58.1-1840.2)

A. There is hereby established the Virginia Tax Amnesty Program (the Program).

B. The Virginia Tax Amnesty Program shall be administered by the Department. Any
taxpayer required to file a return or to pay any tax administered or collected
by the Department shall be eligible to participate in the Program, subject to
the requirements in this section and guidelines established by the Tax
Commissioner. The Tax Commissioner may require participants in the Program to
complete an amnesty application and such other forms as he may prescribe and to
furnish any additional information he deems necessary to make a determination
regarding the validity of such amnesty application.

C. The Tax Commissioner shall establish guidelines and rules for the procedures
for participation and any other rules that are deemed necessary by the Tax
Commissioner. The guidelines and rules issued by the Tax Commissioner regarding
the Program shall be exempt from the Administrative Process Act (&#xA7; 2.2-4000
et seq.).

D. The Program shall have the following features:

   1. The Program shall be conducted during the period July 1, 2017, through June
   30, 2018, and shall not last less than 60 nor more than 75 days. The exact
   dates of the Program shall be established by the Tax Commissioner.

   2. All civil or criminal penalties assessed or assessable, as provided in this
   title, including the addition to tax under &#xA7;&#xA7; 58.1-492 and 58.1-504,
   and one-half of the interest assessed or assessable, as provided in this
   title, which are the result of nonpayment, underpayment, nonreporting, or
   underreporting of tax liabilities, shall be waived upon receipt of the payment
   of the amount of taxes and interest owed, with the following exceptions:
   				a. No taxpayer currently under investigation or prosecution for filing a
   fraudulent return or failing to file a return with the intent to evade tax
   shall be eligible to participate in the Program.
   				b. No taxpayer shall be eligible to participate in the Program with
   respect to any assessment outstanding for which the date of assessment is less
   than 90 days prior to the first day of the Program or with respect to any
   liability arising from the failure to file a return for which the due date of
   the return is less than 90 days prior to the first day of the Program.
   				c. No taxpayer shall be eligible to participate in the Program with
   respect to any tax liability from the income taxes imposed by &#xA7;&#xA7;
   58.1-320, 58.1-360, and 58.1-400, if the tax liability is attributable to
   taxable years beginning on and after January 1, 2016.

E. For the purpose of computing the outstanding balance due because of the
nonpayment, underpayment, nonreporting, or underreporting of any tax liability
that has not been assessed prior to the first day of the Program, the rate of
interest specified for omitted taxes and assessments under &#xA7; 58.1-15 shall
not be applicable. Instead, the Tax Commissioner shall establish one interest
rate to be used for each taxable year that approximates the average
&#8220;underpayment rate&#8221; specified under &#xA7; 58.1-15 for the five-year
period immediately preceding the Program.

F. 1. If any taxpayer eligible for amnesty under this section and under the
rules and guidelines established by the Tax Commissioner retains any outstanding
balance after the close of the Program because of the nonpayment, underpayment,
nonreporting, or underreporting of any tax liability eligible for relief under
the Program, then such balance shall be subject to a 20 percent penalty on the
unpaid tax. This penalty is in addition to all other penalties that may apply to
the taxpayer.

   2. Any taxpayer who defaults upon any agreement to pay tax and interest
   arising out of a grant of amnesty is subject to reinstatement of the penalty
   and interest forgiven and the imposition of the penalty under this section as
   though the taxpayer retained the original outstanding balance at the close of
   the Program.

G. For the purpose of implementing the Program, the Department is exempt from
subsection B of &#xA7; 2.2-2016.1 and &#xA7;&#xA7; 2.2-2018.1, 2.2-2020, and
2.2-2021 pertaining to the Virginia Information Technologies Agency&#8217;s
project management and procurement oversight.

HISTORY: 2017, cc. 53, 433.