Starting Soon: Massachusetts Tax Amnesty Program Granting Full Penalty Abatement

The Massachusetts Department of Revenue has established a tax amnesty program in which qualifying participants can obtain a waiver of most penalties on certain delinquent tax filings. The program will be administered from November 1, 2024, through December 30, 2024.

Taxpayers with outstanding tax returns must file and pay the tax and interest for the open periods by December 31, 2024. Eligible taxpayers include individuals, trusts, estates, and corporate excise taxpayers. Such taxpayers may submit an “Amnesty Request” if they have one of the following state tax liabilities pending:

• Unfiled returns, underreported tax, and other unpaid assessments;
• A current tax examination that will result in an assessment of penalties; or
• A pending resolution, Appellate Tax Board, and collection case matter.

Note that non-filers may be eligible for a three-year limited look-back. Further, taxpayers will not be required to establish reasonable cause for their failure to file or properly report a Massachusetts tax liability.

For under-reporters, the amnesty program encourages such taxpayers to voluntarily file amended returns and pay the additional tax in exchange for penalty abatement. Additionally, eligible taxpayers currently under audit by the state can seek amnesty for any amounts at issue in the examination

For more information on Massachusetts’ upcoming tax amnesty program, please contact Alan Goldenberg, Principal and Leader of the State and Local Taxation (SALT) and Tax Controversy groups, or your Anchin Relationship Partner.