With the state’s tax amnesty program winding down, it is on track to reach its goal of collecting about 10 percent of the $112 million owed in back taxes by individuals and businesses.
As of Jan. 21, some 5,500 delinquent taxpayers had paid $6.4 million according to Paul Grimaldi, chief of information and public relations for the Department of Revenue.
The tax amnesty program, which ends Feb. 15, seeks to make it as painless as possible for thousands of Rhode Islanders who have neglected to pay state taxes, and now face mounting penalties and interest on the taxes they owe.
Neena S. Savage, Rhode Island Tax Administrator, has said the state hopes to collect about $12 million.
The program runs sporadically, with the other most recent programs in 2012 and 2006. Grimaldi said that in 2012 the state collected $22.4 million in the aftermath of the recession, and in 2006 collected $9.9 million.
Through Feb. 15 delinquent taxpayers can take advantage of the state’s tax amnesty program, which eliminates penalties and 25 percent of interest if the taxpayer pays his or her back taxes.
Savage said her office and the Secretary of State mailed 100,000 notices to delinquent taxpayers, notifying them of the tax amnesty program. Details are available at www.taxamnesty.ri.gov.
On the Revenue Department’s website, the division also lists the top 100 delinquents for both individuals and businesses. Savage would not comment on the list, noting that some individuals and businesses may be contesting the state’s claims, others perhaps in litigation.
Taxes owed on the individual list range from $59,082 to $1,943,027. For businesses, the top delinquent owes nearly $4.3 million. That business is S & P Temporary Health Services, Inc. of Lowell, MA. We were unable to find any listing on the internet, and S & P is not listed as a member of the Greater Lowell Chamber of Commerce.
William and Marielle Reilly of Boca Raton, FL top the list of delinquencies for individuals at $1,943,027.
William Reilly, a lawyer who was convicted in 2016 of tax evasion in Florida and sentenced to 30 months in prison for failing to pay $1.5 million in income taxes, according to press reports. Previously he pled guilty to tax evasion, was ordered to serve three years of supervised release when his term ends and repay the $1.9 million, the reports said.
Reilly, according to the articles, bought two residences in Boca Raton, a residence in Chittenden, Vt., and oceanfront property in Portsmouth, RI. The Vermont and Rhode Island homes were placed in shell companies. According to the articles, Reilly also bought a 2001 Jaguar XJ8 and a 2002 Chevrolet Suburban in the name of a trust officer.
Related Stories:
Podcast: A conversation with RI Department of Revenue on Rhode Island’s Tax Amnesty Program