Rhode Island created a temporary tax amnesty program as part of the FY 2027 budget legislation. The program, which runs for 75 days beginning on December 3, 2026, and ending on February 15, 2027, allows eligible taxpayers to come forward, report any unpaid state taxes (for any tax types imposed by the State of Rhode Island), and resolve past liabilities with reduced consequences. The program covers taxes due for taxable periods ending on or before December 31, 2025. Benefits include waived penalties and civil and criminal prosecutions related to the disclosed tax periods. Interest is also reduced by 25%, and taxpayers may be allowed to enter into an installment payment agreement if they demonstrate financial hardship. Taxpayers under a criminal tax investigation or those who are party to a pending civil or criminal case involving tax fraud cannot participate in the program.
Businesses that may have potential tax liabilities should evaluate their exposure and determine if the amnesty program is applicable and beneficial to them and pursue filing an application for amnesty. (H.B. 7127, Laws 2026)