Currently, amnesty programs through the Internal Revenue Service, State of Colorado, and City and County of Denver are providing taxpayers the opportunity to pay various overdue taxes with limited or no interest payments and no penalties.  A summary of the applicable taxes and relief provided under each program is as follows: 

• The IRS is permitting eligible employers that have been improperly classifying employees as independent contractors to pay ten percent of the employment tax liability that would have been paid to the worker for the most recent tax year.  Upon payment, the IRS will forgive all accrued interest and penalties and will not undertake any employment tax audit regarding worker classification for such workers in prior years.
• The State of Colorado is allowing individuals and businesses to pay taxes due on or prior to December 31, 2010 with one-half of the accrued interest and no penalties.  This program applies for all Colorado taxes except the International Fuel Tax Agreement, the Passenger Mile Tax, and the International Registration Program.
• The City and County of Denver is permitting taxpayers to pay any sales, use, and occupational privilege taxes that were incurred on or before June 30, 2011 with one-half of the accrued interest and no penalties.

Each of these programs will, or is expected to, expire soon so taxpayers wishing to take advantage of the various benefits provided should act fast.  Additional information on these programs, including information on how to apply, may be found here.