On July 11, 2014, Governor Deval Patrick signed legislation to implement a two-month tax amnesty program within fiscal year 2015, which offers delinquent taxpayers an opportunity to settle past state tax liabilities without paying penalties. The amnesty will not apply to any taxpayer who, before or during the period of the amnesty program, was or is the subject of a tax-related criminal investigation or prosecution.
The DOR has released guidance explaining the information that taxpayers need to know about the amnesty program.
Key points to note from this guidance include:
- The program will take place during the months of September and October, 2014.
- Participation is by invitation only. Tax amnesty notices showing the tax interest due, along with penalties to be waived, will be mailed on September 2, 2014.
- Unpaid penalties are waived if taxpayers pay the tax and interest on or before October 31, 2014.
- The amnesty only applies to assessments that were on the books prior to July 1, 2014.
- The DOR will issue a Technical Information Release with further details about the amnesty.
- Frequently Asked Questions will be added to the website.
- Based on current guidance from the DOR, the program will not include the corporate excise tax.
The tax types that are eligible for the amnesty period include:
- boat and recreational vehicle sales taxes,
- cigarette, cigar, and smoking tobacco excise taxes,
- convention center financing fees on rooms, parking and certain tours,
- club alcoholic beverage excise taxes,
- gasoline excise taxes,
- individual income taxes,
- materialman sales taxes,
- meals taxes, including local option taxes,
- room occupancy excise taxes, including local option taxes,
- sales and use taxes,
- special fuels excise taxes, and
- withholding (income, performer, pass-through entity, lottery annuity) taxes.
Any taxpayer who utilizes the tax amnesty program will be prevented from utilizing any future tax amnesty programs for the next consecutive 10 calendar years, beginning in calendar year 2015. If you have any questions or concerns regarding the tax amnesty program, please contact us.