Albany to Offer Tax Amnesty

By MICHAEL WILSON

New York State, which is expected to face a budget gap of at

least $6 billion for the next fiscal year, hopes to recoup a

small portion of the shortfall with its first tax amnesty

program since 1997, officials announced yesterday.

The program is expected to coax $175 million out of delinquent

taxpayers by offering a two-point drop in interest on back

taxes and by waiving prosecution or sanctions. An amnesty

program in 1997 raised $123 million, a state spokesman said.

"Our message to tax evaders is simple: `Get caught up before

you get caught,' " the state commissioner of taxation and

finance, Arthur J. Roth, said yesterday at a news conference,

quoting one of a few slogans for the program. Others include

"The second chance you've been waiting for," and "Do the right

thing, wipe the slate clean."

About one million New Yorkers will be sent mailings detailing

what they owe and how much they can save by paying now. The

amnesty deadline is Jan. 31. The program is outlined on a

state Web site, www.nystaxamnesty.com, where taxpayers can

settle balances with an electronic transfer or with a credit

card. Information is also available by telephone at (888)

552-3453.

On April 1, after the deadline, interest rates on outstanding

liabilities will rise two percentage points over the

pre-amnesty levels, or four points for those participating in

the program, Mr. Roth said.

The program applies to most state taxes, including personal

income and withholding taxes, corporation and franchise taxes,

and sales and use taxes. Some local taxes also apply,

including the New York City personal income tax and various

sales taxes.