What can business owners do if they realize they have not paid various state taxes for past years?
Most states provide a voluntary disclosure program. Say a business owner discovers through his state tax consultant that he owes 20 years of back pay in state taxes. Because he realized it before the state, he has the ability to enter into an agreement with a state to go back only three years (on average) and pay back taxes. This program usually involves a full abatement of all penalties and maybe partial abatement of interest. The ability to avoid five, 10 or 15 years of back taxes is a gift states offer business owners. It lifts a tremendous burden. Meanwhile, states are happy to offer such a break, because then they can enroll another business on their tax roll for future collection purposes. However, if the state finds out first, the 20-year-old bill will be due in full. If you suspect you owe multi-state taxes, get to the bottom of it before a collections bill wipes out your bottom line. What about opportunities to recoup money if business owners have overpaid sales taxes in a giv