Massachusetts – Proposed Tax Amnesty

SALT Report 2832 – Both the Massachusetts Senate and House of Representatives have approved a bill that if enacted, would create a tax amnesty program. Under the provisions of House Bill 3608, the tax amnesty program would waive all penalties without the taxpayer being required to show reasonable cause or the absence of willful neglect for failing to:

  • Timely file a return for any tax type and for any tax period
  • File returns that report the full amount of the taxpayer’s liability for any tax type and for any tax period
  • Timely pay any tax liability, or
  • Pay the proper amount of any required estimated payment toward a tax liability

The amnesty program will include, but is not limited to, the following tax types: sales and use tax, sales tax on telecommunications services, meals tax, materialman sales tax, withholding income, performer withholding, pass-through entity withholding, gasoline excise, special fuels excise, special fuels excise local option, and boat or recreational vehicles sales tax.

The Bill provides that the amnesty program will run for two consecutive months within fiscal year 2014, which along with the scope of the program, the periods covered, and the look-back period for unfiled returns, are to be determined by the Commissioner at a later date.

Finally, the waiver of liability will only apply if the taxpayer files all returns, makes all payments, or comes into full compliance with the tax laws of the State.

For Further Information

Massachusetts General Assembly – House Bill 3608