D.C. will be launching a two-month tax amnesty program on Monday, which will allow the more than 42,000 taxpayers who have outstanding tax debts to the city to remit most of that amount without penalty or fee. (Hmm, we can think of a few highly-visible Washingtonians and businesses who probably wish they could have availed themselves of such a program in the past.)

During the two month amnesty, the D.C. government will accept filing and payment of any outstanding taxes which were incurred through December 2009 — real property taxes, nursing home provider fee and ballpark fees excluded. Interest on debts will still be due for those who choose to make payments during the amnesty period. District CFO Natwar Gandhi said today that the city is missing about $170 million in tax revenue, more than half of which is fees, penalties and interest. The city’s budget includes an expected recoup of $20 million from the program, which seems like a modest enough goal.

With the amnesty program, the city has obviously hit a point where they realize that they’re probably going to get back little, if any money from people who, in many cases, owe more in penalties and fees than they do in taxes. When one additionally considers the amount of money and effort that the city would have to pump into seriously pursuing tax scofflaws and getting remittance, the decision for the city to offer such a program to encourage payment is kind of a no-brainer. Considering that there is no statute of limitations on prosecution for failing to file tax returns, it seems like for those who didn’t file and have not yet gotten caught, taking advantage of the amnesty program might be a good idea.

“Some of them do not consider the consequences of their actions,” said Gandhi of scofflaws at a press conference today. “They do not care or realize that the services they receive have to be paid for by the taxes of others.”

The city has set up a website so that people who owe can get more information about the program. The amnesty ends on September 30.