Tax Shelter Participants: October 1st is Deadline for Multistate Voluntary Compliance Program

For Release: September 10, 2007
Contact: Meredith Helgerson, Communications Officer, (608) 261-2271

MADISON - If an individual or corporation has used a tax shelter to avoid Wisconsin income or franchise taxes, an audit could result in costly penalties. Through October 1, 2007, the Multistate Tax Commission (MTC) is administering a nationwide program to encourage taxpayers to voluntarily disclose their participation in tax shelters in order to avoid penalties.

"This effort ties in nicely with Governor Doyle's Tax Shelter Compliance Initiative that is in his proposed budget", stated Department of Revenue (DOR) Secretary Roger M. Ervin. "This is an opportunity for taxpayers to come clean without penalties. It benefits both the individual taxpayer and taxpayers across the state".

The DOR will waive all civil and criminal penalties on tax that is attributable to tax shelters disclosed in this program. This waiver is only valid for transactions disclosed on or before October 1, 2007.

Any taxpayer who has used a tax shelter (also known as a "tax avoidance transaction") to reduce or eliminate Wisconsin income or franchise tax liability for any tax year beginning before January 1, 2006, is eligible. A "tax avoidance transaction" is a plan or arrangement devised for the principal purpose of avoiding federal or Wisconsin income or franchise taxes.

Additionally, a taxpayer must meet the following criteria to participate in the program:

For each year the tax avoidance transaction was used, taxpayers should do the following:

For More Information:

The MTC's website www.mtc.gov/Resources.aspx?id=2390 has further details of the program's policies and procedures, a list of participating states, and the benefits offered by each state.

If you have questions about the Multistate Tax Shelter Voluntary Compliance Program, please contact the MTC by e-mail at VCP@mtc.gov or by telephone at (202) 624-8699.

Last updated September 10, 2007