Massachusetts Offers Tax Amnesty

The Massachusetts Commissioner of Revenue is currently running a 60-day tax amnesty program from April 1, 2016 through May 31, 2016.

Eligible Taxpayers

1. Individual taxpayers who either have failed to file a tax return or failed to report the proper tax due on a prior tax return that was due on or before December 31, 2015, without regard to extensions; and
2. Business taxpayers who have either failed to file a tax return or failed to report the proper tax due on a prior tax return that was due on or before December 31, 2015, without regard to extensions.

Ineligible Taxpayers

• Taxpayers engaged in pending litigation with the Commissioner;
• Taxpayers seeking a waiver of tax penalties related to a pre-existing assessment, whether paid or unpaid;
• Taxpayers seeking a refund of tax or a credit of an overpayment;
• Taxpayers who have been or are the subject of a tax-related criminal investigation or prosecution as to any tax;
• Taxpayers participating in the Amnesty Program with a fraudulent application or documentation;
• Taxpayers that fail to report  the full amount of tax properly due on an Amnesty Return or attempt in any manner to defeat or evade a tax by using  the Amnesty Program; or,
• Taxpayers that have entered into a settlement agreement with the Commissioner.

Covered Taxes

Most tax types administered by the Massachusetts Department of Revenue, with the exception of:

• Preferred provider excise tax;
• Deeds excise tax; and
• Abandoned bottle deposits.

Benefits of Participation

• Waiver of certain penalties for failure to timely file a return or pay tax due on eligible tax types;
• Limited three-year look-back period; and
• Absolution from DOR-initiated criminal investigation or prosecution with respect to a tax type and periods included in any Amnesty Return submitted and payment made thereon in good faith.