The Massachusetts Department of Revenue has issued a draft notice outlining potential restrictions on eligibility for certain taxpayers seeking to benefit from the Massachusetts Tax Amnesty Program 2024.
The draft notice, “Working Draft TIR: Amnesty Program for Taxpayers with Certain Tax Liabilities Notices & Alerts,” was released on 17 October 2024.
According to the draft guidelines, the typical look-back period – which generally limits tax liability to filings due after 1 January 2022 – will not apply if the Department has previously contacted the taxpayer concerning their tax obligations.
The look-back period, which will generally restrict tax liability to filings due after 1 January 2022, will not apply if the Department of Revenue has had prior contact with the taxpayer regarding their tax obligations.
The amnesty programme will be open to individual and business taxpayers who meet the eligibility requirements contained in Section III below. Most tax types will be eligible, including personal income tax, corporate excise, and sales/use tax. Eligible taxpayers will be able to file delinquent or amended returns, pay the outstanding tax and interest, and benefit from a waiver of most tax penalties. Non-filers may also benefit from a three-year look-back period.
The programme will begin on 1 November 2024 and extend through Monday, 30 December 2024. All Amnesty Requests must be submitted electronically during this period. Tax returns and payments must be submitted to the Department of Revenue during this period, either electronically or postmarked on 30 December 2024, if sent by US mail.
Eligibility requirements: Taxpayers and tax types
Eligible Taxpayers
A waiver of tax penalties under the amnesty programme is available to an eligible taxpayer. An “eligible taxpayer” is any individual or business taxpayer not excluded from the programme that:
- Failed to file a Massachusetts tax return that was due on or before 31 December 2024;
- Has not reported the full amount of tax correctly due on a previously filed Massachusetts tax return that was due on or before 31 December 2024;
- Has filed an incorrect or insufficient Massachusetts tax return; or
- Has an assessment of one of the following types:
- An unpaid and self-assessed tax liability stated on a bill issued by the Commissioner on or before 30 December 2024 or
- A tax liability assessed by the Commissioner on or before 30 December 2024 remains unpaid.
Limited look-back period for non-filers
The limited look-back period shall not apply in the case of a tax type for which the taxpayer has previously filed all returns that were due from 1 January 2022, through 31 December 2024, without regard to extensions. However, in such cases, the taxpayer may still be eligible to participate in the amnesty programme and to receive a waiver of tax penalties for any amount of tax listed on an Amnesty Request for the tax type.
The limited look-back period shall not apply in the case of a taxpayer filing an Amnesty Request to report estate tax.[14] The taxpayer may still be eligible to participate in the amnesty programme and receive a waiver of tax penalties for any estate tax fully paid and reported as part of an Amnesty Request.
The limited look-back period shall not apply in the case of a taxpayer submitting an Amnesty Request to report trustee tax (i.e., sales/use tax, meals tax, withholding tax, etc.) where any portion of the tax was actually collected for any of the tax periods during the limited look-back period.
The taxpayer is otherwise eligible to participate in the amnesty programme and to receive a waiver of tax penalties for any trustee tax fully paid and reported as part of an Amnesty Request.
