Massachusetts Enacts Limited Tax Amnesty Program

The Massachusetts Department of Revenue has granted a limited amnesty program for taxpayers with existing personal and/or business liabilities. Participation in this program for eligible taxpayers could result in significant savings of assessed penalties.

The program runs from September 1, 2014 to October 31, 2014. The amnesty is only applicable to a tax liability that was assessed prior to July 1, 2014. The amnesty will cover most taxes and provide a waiver of all penalties assessed if the taxpayer pays all tax and interest before October 31, 2014.

Taxpayers will be notified by the DOR if they are eligible. The DOR will issue a “Tax Amnesty Notice” to all eligible taxpayers under this program. If the taxpayer does not receive a notice from the DOR they are not eligible to take part in the program.

Any taxpayer that participates in this amnesty program will not be eligible to participate in any future amnesty programs for a period of 10 years.

Taxpayers who are NOT eligible:

• Taxpayers that are subject a tax related criminal investigation or prosecution
• Taxpayers that the Commissioner has determined provided false or fraudulent documents or returns
• Taxpayers that have signed a settlement agreement with the Commissioner
• Taxpayers that have paid all tax and interest due on an outstanding assessment but still owe and are disputing penalties related to the taxes paid

Taxpayers that are currently under a Payment Agreement with the Commissioner with respect to an assessment prior to July 1, 2014 will be eligible to participate. Any penalties that have been paid in previous installment payments will not be waived, only those that are still outstanding and due.

Taxpayers that have an appeal pending with respect to an assessment that has been made prior to July 1, 2014 and under an eligible tax will be allowed to participate in the amnesty program if the taxpayer has been issued a Tax Amnesty Notice. Payment of the outstanding liability does not constitute an admission of liability or forfeiture of statutory appeal rights for the disputed assessment.
All payments will need to be paid on-line through the Department’s Web Services for income application or Web File for Business application or in the form of a check or money order made payable to the Commonwealth of Massachusetts. Credit Card payments will be accepted but a convenience fee will be added to the charge.

All payments must be received by the Department of Revenue by 5:00 PM on October 31, 2014 or if delivered via US mail or commercial delivery company, it must be postmarked by October 31, 2014.

Please consult your Marcum State and Local tax professional with any questions concerning the Massachusetts Tax Amnesty Program.