Massachusetts’s recently enacted budget bill authorizes the Department of Revenue to establish a 60-day tax amnesty program in fiscal year 2025 to end no later than June 30, 2025. The tax amnesty program will apply to tax returns due on or before December 31, 2024. The scope of the tax amnesty program – including tax types, periods covered, and the applicability of look-back periods – will be determined by the commissioner.
Under the amnesty program, penalties will be waived for failure to file a return or pay tax or estimated tax due for returns due on or before December 31, 2024. To qualify for the amnesty program, taxpayers will be required to voluntarily file all proper returns and pay the full amount of tax and interest due by June 30, 2025. The commissioner will not authorize the waiver of interest under the amnesty program.
If a taxpayer comes into compliance with tax obligations during the tax amnesty program, the commissioner may apply limited look-back periods for unfiled returns, not to exceed 4 years, unless the commissioner determines that the taxpayer has acted with fraudulent intent.
Penalty waivers will not apply to any taxpayer who is or has been the subject of a tax-related criminal investigation or prosecution or to any taxpayer who delivers or has delivered or disclosed a false or fraudulent application, document, return, or other statement.
Tax amnesty will not apply to penalties related to fuel taxes administered under the International Fuel Tax Agreement or under the local option portions of taxes or excises collected for the benefit of cities, towns or state governmental authorities.
The commissioner will establish administrative procedures and methods to prevent a taxpayer who utilizes the tax amnesty program from utilizing any future tax amnesty programs for the next 10 consecutive years, beginning calendar year 2024.
We will monitor for additional state guidance and dates for the 2025 tax amnesty program. (H. 4800, Laws 2024)