INSIGHT

Tax alert: Massachusetts Tax Amnesty (2024)

Sue P. Leighton • October 7, 2024

Massachusetts has announced a tax amnesty program for November and December 2024, offering eligible taxpayers an opportunity to settle outstanding tax obligations with reduced penalties. This alert summarizes key aspects of the program. 

Program overview 

The Massachusetts Department of Revenue (DOR) will administer a tax amnesty beginning November 1, 2024 and ending December 30, 2024. This program, authorized by the state legislature in H.B. 4800 and signed by Governor Maura Healey, aims to recover an estimated $100 million in unpaid taxes. The DOR will also send amnesty letters to taxpayers with eligible existing tax liabilities, notifying them of the opportunity to participate. 

Eligibility 

For returns and payments due prior to December 31, 2024, the amnesty applies to various tax types, including: 

• Personal income tax 
• Corporate excise tax 
• Sales and use tax 
• Payroll withholding tax 
• Estate and trust tax 

Taxpayers may be eligible if they have: 

• Unfiled returns 
• Underreported tax obligations 
• Existing tax liabilities 
• Pending audits that will result in penalty assessments 
• Cases in various stages of resolution or appeal 

Benefits for taxpayers 

Participating taxpayers can: 

• Have most penalties waived 
• Pay only the tax owed plus interest 
• Potentially benefit from a limited three-year look-back period for non-filers 

How to participate 

To take advantage of the amnesty: 

1. Submit an Amnesty Request via MassTaxConnect between November 1 and December 30, 2024 
2. Pay all tax and interest included in the Amnesty Request 
3. File all required returns with the DOR by December 30, 2024 

Important considerations

• Taxpayers who received amnesty in 2015 or 2016 for the same tax type and period are ineligible 
• The program does not apply to taxes already paid or to refund requests 
• Taxpayers under tax-related criminal investigation or prosecution are not eligible 

Next steps 

As your trusted advisors, we at BPM recommend: 

1. Reviewing your tax situation to identify any potential liabilities 
2. Assessing eligibility for the amnesty program 
3. Preparing necessary documentation and calculations 
4. Developing a strategy to maximize benefits from the amnesty 

Professionals in our Sales and Local Tax (SALT) practice are ready to assist you with this opportunity and compliance with Massachusetts tax laws. 

For more information or to discuss how this amnesty may apply to your specific situation, please contact your BPM tax advisor or reach out to us on our website.