Are you one of the “lucky” Massachusetts taxpayers that owe the Commonwealth unpaid taxes?  If you have a tax liability that existed and were billed prior to July 1, 2014 via a Notice of Assessment and that balance remains unpaid – you may qualify to have the unpaid penalty, relating to that tax balance, waived if payment is made in full by October 31, 2014.

The state amnesty program runs for two months, from September 1, 2014 through October 31, 2014.  The state approximates that 300,000 taxpayers qualify for this program and hopes to collect $35 million in unpaid taxes owed.

What is the benefit to the Massachusetts Department of Revenue (MDOR) to entice delinquent taxpayers to pay their tax bill and to forgive the penalty?  Increase the cash flow to the state without raising taxes.  By waiving the tax penalty previously assessed to late-paying and non-paying taxpayers, the Commonwealth is encouraging the late payers to pay up in full on their existing tax balance plus accrued interest.

Both personal income tax and numerous business taxes qualify for the amnesty program.  In September, taxpayers eligible for the program will receive a Tax Amnesty Notice from the MDOR.  The notice will state the delinquent amount due for a specific tax period plus the amount of the unpaid penalty that has been assessed.  The penalty will be waived if the amnesty balance is paid in full by the October 31.  Any interest on the unpaid balance will not be waived.  This amnesty program is not offered to any taxpayers whose outstanding tax balance plus previously assessed penalty has already been paid.  Additionally, any taxpayer who participates in this program will not be eligible to participate in any future Massachusetts amnesty programs for 10 year beginning in 2015.

For more information and to view FAQ’s relating to this amnesty program, taxpayers can visit the following websites:

http://www.mass.gov/dor/breaking-news/what-you-need-to-know-about-the-tax-amnesty-program.html

http://www.mass.gov/dor/breaking-news/amnesty-program-faqs.html

 

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