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Press Release
May 1, 2007

Agency Completes Voluntary Compliance Initiative Bringing in $19.2 Million

The Oklahoma Tax Commission recently completed a corporate income tax voluntary compliance initiative that began during 2006. As a result of the initiative, more than $19.2 million was collected from 140 companies for income and franchise taxes with related interest.

This initiative affected companies deriving income from Oklahoma sources by licensing intangible property to related parties operating in Oklahoma. Taxpayers engaged in sheltering Oklahoma income through the use of an intangible holding company were permitted to participate in the voluntary compliance initiative.

The voluntary compliance initiative allowed a corporation that derived income from Oklahoma sources, to file and pay all income and franchise taxes due for tax years 2003, 2004, and 2005. In return for complying, the Audit Division recommended the waiver of all penalties and one-half of the interest otherwise due by statute. The Oklahoma Tax Commission initiative ended December 31, 2006.

Companies that did not participate in the voluntary compliance initiative may still come forward under the Oklahoma Tax Commission’s voluntary disclosure program with somewhat less beneficial terms than the voluntary compliance initiative. Additional audit enforcement activities for non-compliant taxpayers will begin within 30 days.

Companies or organizations that need more information on the initiative or current compliance opportunities can contact Charlie Robertson at (405) 521-6286 or cjrobertson@tax.ok.gov.