A bill to provide a one-time amnesty from criminal and civil tax penalties and 50 percent of the interest penalty owed for certain taxpayers who pay previous underpayments of Federal tax during the amnesty period, to amend the Internal Revenue Code of 1954 to increase by 50 percent all criminal and civil tax penalties, and for other purposes.
Federal Tax Delinquency Amnesty Act of 1985 - Provides for a one-time amnesty from criminal and civil tax penalties for a taxpayer who: (1) files a written statement with specified information concerning any underpayment of tax; (2) pays the amount of such underpayment when filing the statement; and (3) within 30 days of notification of 50 percent of the amount of interest payable on any tax delinquent amount, pays the amount of such interest or delinquency. Permits installment payments in certain cases.
Defines the amnesty period as the period from July 1, 1985, to December 31, 1985, or the six-month period beginning the first July 1 after the enactment of this Act. Applies such amnesty to all payments relating to tax years ending by December 31, 1983, or taxable events occurring before January 1, 1984.
Disallows such amnesty where: (1) the taxpayer was contacted before a statement was filed; (2) there was fraud in seeking amnesty; (3) a criminal investigation is pending; or (4) the income involved is illegal source income.
Authorizes appropriations to administer such amnesty program and to employ 3,000 additional Internal Revenue Service agents.
Increases criminal and civil tax penalties by 50 percent.
Referred to House Committee on Ways and Means.
Introduced in Senate
Read twice and referred to the Committee on Finance.
Committee on Finance requested executive comment from OMB, Treasury Department.
Subcommittee on Taxation and Debt Management. Hearings held. Hearings printed: S.Hrg. 99-242.
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