February 25, 2015

Massachusetts Authorizes Limited Tax Amnesty Program

Massachusetts Authorizes Limited Tax Amnesty Program

Massachusetts Governor Charlie Baker has recently signed a bill (H.B. 52) containing a limited tax amnesty program. While specific details have yet to be released the framework of the program has been released within the signed legislation. This sixty-day amnesty will take place before the 2015 fiscal year ends on June 30, 2015, with the exact dates to be announced by the Commissioner of Revenue.

Taxpayers who have previously assessed unpaid liabilities or self-assessed liabilities are eligible.  The amnesty will cover corporate excise tax and other tax types as determined by the Commissioner.  The Commissioner will also determine any limited look-back period. 

The amnesty includes a waiver of penalties that the Commissioner has sole authority to waive, without requiring the taxpayer to prove reasonable cause or absence of willful neglect.  Interest will not be waived.   The Commissioner may deny participation in the program if she determines that such participation would not enhance revenue collection.

Taxpayers who participate in this tax amnesty program will be prohibited from utilizing any future tax amnesty program for the ten-year period beginning in calendar year 2015.

The text of the tax amnesty bill can be found at the following link:  https://malegislature.gov/Bills/189/House/H52

We will continue to monitor this program as more details are released by the Commissioner’s office.  As with any tax amnesty program taxpayers should review all of the terms and conditions of the program before participating.  

For more information about the upcoming Massachusetts Tax Amnesty program contact your Marcum State and Local Tax Professional.  

A special thanks to article contributor Barbara Pastorick, Tax & Business Services.