A tax amnesty bill already in effect in Iowa is giving a two-month window of redemption to individuals and businesses who have failed to meet the state’s financial tax requirements.

Gov. Chet Culver’s bill, which allows delinquent, negligible and erroneous tax payments to be reconciled of financial transgressions with the state, has ran since Sept. 4 and will continue through Oct. 31.

By paying only half the interest on the backed taxes, a taxpayer’s compensation clears him of any possible criminal prosecution and penalties associated with late payments.

“This is an opportunity for them to come forward and pay the tax that’s owed,” said Stuart Vos, administrator of the Revenue Operations Division of the Iowa Department of Revenue.

It has been more than 20 years since the bill’s last appearance. According to the Iowa tax amnesty Web site, www.iowataxamnesty.gov, the last tax amnesty period was held in 1986 and cleared $36 million in its two-month period.

This year, with 14 days to go, the state has collected approximately $3.2 million, a far cry from the budgeted $16 million the Legislature has already committed to next year’s budget. This is even further from the $54 million the government expected to accumulate from the act. This stalling collection rate is of little concern to the state.

“In 1986, when they did this, 85 percent of the money came in on the last week,” Vos said.

Vos said the money will be appropriated to the state’s fiscal year of 2008.

Roger McEowen, director of the Center for Agricultural Law and Taxation and associate professor of agricultural education and studies, however, regards the break as an irresponsible revenue generator.

“It’s bad policy,” McEowen said. “It’s a cheap temporary revenue fix that does nothing but build expectations for future amnesties, while making law-abiding taxpayers look foolish.”

McEowen does, however, suggest that the bill might have been an effective way to generate revenue, on a long-term basis, if it had revamped the taxation process.

“Making tax codes simpler would increase compliance,” McEowen said.

Nonetheless, taxpayers have until the Oct. 31 to be forgiven and can call 1-877-4BAKTAX (1-877-422-5829) to learn more.