FAQs - Amnesty

Can you provide examples of how to calculate payments under the payment plan?

The formula for calculating the monthly payment under the payment plan is:

1.  If amount due is $500 or less—the full amount must be paid with the amnesty application.
  1. 2.  If amount due is $42,000 or more—total amount due under amnesty/84 months; or
  2. 3.  If amount due is more than $500 and less than $42,000—the monthly payment is $500. 

Here are some examples:

Example 1—Total use tax liability is $10,000.  Since the minimum payment is $500, the monthly payment is calculated by dividing $10,000 by $500, or $500 per month for 20 months.

Example 2—Total use tax liability is $126,000.  Since the maximum payment period is 84 months, the monthly payment is calculated by dividing $126,000 by 84 or $1,500 per month for 84 months. 
Example 3—Total use tax liability is $500 or less.  Since the minimum payment is $500, the full amount due must be remitted with the amnesty application.
Example 4—Total use tax liability is $1,700.  The first payment is $500, the second and third payments are $500 each.  The final payment is $200.  In other words, for amounts not evenly divisible by 500, the final payment will be the remaining amount due.