Many states require a taxpayer to report any change in the taxpayer's federal taxable income. Some states such as Massachusetts and California have issued releases reminding taxpayers that the "federal change" rules will apply to the changes resulting from compliance with the federal disclosure program. Although not explicitly stated in these releases, compliance with the federal change rules on a voluntary basis will presumably reduce the risk of state criminal prosecution. At least one other state – Connecticut – has announced its own program for taxpayers to voluntarily disclose offshore assets.
It is important for taxpayers to determine and comply with the requirements of states where they were subject to tax jurisdiction for the years covered by the federal program in order to reduce the risk of criminal prosecution and minimize civil penalties at the state level.