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California Tax Amnesty
As you may have heard, the State of California will be offering a tax amnesty program whereby you would pay your past-due income, franchise, sales and/or use taxes, plus interest, and you will not have to pay most penalties and fees or be subject to criminal prosecution. This program covers tax periods beginning before January 1, 2003, and you must apply for amnesty between February 1 and March 31, 2005. You will have until May 31, 2005 to file missing or amended returns and also pay the tax owed. If you cannot pay by May 31, 2005, you may be able to obtain an extension of time to pay until June 30, 2006.
If you choose not to participate in the program, you may be subject to increased penalties and stepped-up enforcement action. However, by participating in the program, you will give up your right to protest, appeal, or file a claim for refund or credit on years for which you are granted amnesty.