Auditor General Jack Wagner Commends Gov. Rendell for Offering Tax Amnesty to Help Close Budget Deficit

HARRISBURG, Pa., April 26 /PRNewswire-USNewswire/ -- Pennsylvania Auditor General Jack Wagner today commended Gov. Ed Rendell for offering a tax amnesty program to taxpayers who are delinquent in their state taxes.

An anticipated $190 million from tax amnesty was included in the final state budget for the 2009-10 fiscal year. New Jersey held a successful tax amnesty program last year, raising $725 million.

Wagner proposed the idea of a tax amnesty last summer along with a series of other suggestions he offered to the governor and the General Assembly to address the budget shortfall.

"With Pennsylvania facing another budget crisis this fiscal year, this money, rightfully owed to the commonwealth, will help lower the budget gap without implementing a tax increase," Wagner said.  "I urge Gov. Rendell and the General Assembly to work collaboratively, in a bipartisan spirit, to reach a budget agreement by the legally mandated June 30 deadline, sparing Pennsylvania the dubious distinction of going eight consecutive years without passing a budget on time."

The tax amnesty program will run for 54 days, from April 26 to June 18. During this time, the Pennsylvania Department of Revenue will waive 100 percent of penalties and half of the interest

for anyone who pays his or her delinquent state taxes. Individuals, businesses and other entities

with Pennsylvania tax delinquencies as of June 30, 2009, are generally eligible to participate in the Tax Amnesty Program.  

Wagner's tax amnesty proposal was based on Pennsylvania's previous tax amnesty, offered in 1995-96, in which the state collected over $93 million. At that time, the amnesty program ran for 90 days and waived penalties, but required full payment of taxes and interest.

The Department of Revenue estimates that the commonwealth is owed about $2.1 billion in back taxes from more than 1 million businesses and individuals. Wagner said he hopes the majority of those owing money will use the amnesty period to settle up with the state.

"The commonwealth should make sure that it collects all that it can from tax scofflaws before it asks honest, hard-working taxpayers and struggling businesses to pay one cent more in higher taxes," Wagner said.

Auditor General Jack Wagner is responsible for ensuring that all state money is spent legally and properly.  He is the Commonwealth's elected independent fiscal watchdog, conducting financial audits, performance audits and special investigations.  The Department of the Auditor General conducts more than 5,000 audits per year.  To learn more about the Department of the Auditor General, taxpayers are encouraged to visit the department's Web site at www.auditorgen.state.pa.us.

SOURCE Pennsylvania Department of the Auditor General

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