Massachusetts Amnesty Program is Just Around the Corner

The Massachusetts Department of Revenue (DOR) has released details about its amnesty program as part of the Fiscal Year 2025 Budget Act. 

The tax amnesty will begin on November 1, 2024, and end on December 30, 2024. During this time, eligible taxpayers must: 

1. Submit an online request for amnesty.
2. File all required returns.
3. Pay all taxes and interest. 

If these requirements are completed by December 30, the DOR will waive most penalties. 

What taxes are eligible for amnesty?

Taxes eligible for amnesty include but are not limited to:

• Corporate and Corporate Combined Excise

• Estate Tax

• Financial Institution Excise

• Nonresident Composite Tax

• Partnership Income Tax

• Pass-Through Entity Withholding

• Personal Income Tax (including nonresident)

• Sales Tax

• Use Tax (business and personal)

• Withholding Tax

Taxpayers requesting amnesty for multiple tax types must submit a separate amnesty request for each account. 

Who is eligible? 

Taxpayers are eligible for the amnesty program if they have a tax liability related to any of the following:

• Unfiled returns, underreported tax, or other unpaid assessments

• A current audit that will result in an assessment of penalties

• Pending resolution, appellate tax board, and collection cases

Some taxpayers are ineligible for the amnesty program, including:

• Those who have already paid their tax

• Those who are only seeking a waiver of penalties

• Those who are in active bankruptcy 

• Those who received amnesty relief in 2015 or 2016 for the same tax type and period

How do I apply for the amnesty program?

Applying for the amnesty program differs based on a taxpayer’s circumstances. The most common scenarios are:

• Registered taxpayers with existing liabilities

• Taxpayers needing to amend return(s)

• Taxpayers under an open audit

• Non-filers and first-time filers 

Staying up-to-date on state and local tax changes is critical for taxpayers. It’s important to seek guidance from a State and Local Tax professional to understand the implications and proactively strategize tax planning.