Tax amnesty offered by some states.

[moneysense]

Some states across our country are offering tax amnesty programs, which let people pay past due tax bills with little or now interest or penalties.

Nevada gave up over $14M in penalties and interest but still collected $41M between just July and October of this year.

Oklahoma raised $82M with its 90 day Clean Slate program for both individuals as well as businesses.

New York also has such a program and Connecticut and Massachessetts are getting their programs ready now. Verenda Smith, a spokes worman for the Federation of Tax Administrators had this to say

Anything you can do to speed up cash flow is cheaper than your alternatives, like borrowing.

But, still, in light of these offers, there are worries that people might not pay their taxes and wait for the next free program to come along. But, they have to consider that this may never happen again. That this offer is only because of the dire straits the economy is in right now.

[carol b]

Well no such luck here. I had to pay the interest right along with the state tax that I already owed. It would have been nice to catch a break but at least they are paid now.