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Massachusetts Issues Guidance on Tax Amnesty Program


4/16/15

Synopsis
 
The Massachusetts Department of Revenue has issued guidance regarding its 2015 Tax Amnesty Program.
 
Issue
 
The Massachusetts Department of Revenue (DOR) established a 60-day amnesty program (“the Program”) starting March 16 and ending on May 15, 2015 and recently issued guidance describing Program details. The guidance, Technical Information Release 15-2, addresses the amnesty period, eligibility requirements, the scope of the amnesty program, payment requirements, and the administration of the program.
 
Tax types eligible to participate in the Amnesty Program include:

  • Corporate excise
  • Financial institutions tax
  • Insurance tax
  • Public utilities tax
  • Bank tax
  • Estate tax
  • Fiduciary income tax
  • Individual use tax on motor vehicles
     

Taxpayers eligible for the Program and having an assessment outstanding as of January 1, 2015, will receive tax notices from the DOR entitled “Tax Amnesty Notice” (“Notice”). The DOR started sending out the Notices in March to approximately 24,000 qualifying taxpayers.
 
The state will abate all penalties for taxpayers participating in the Program and timely paying the tax and interest due. However, taxpayers participating in the Program waive the right to seek a refund of any amounts paid and may not participate in a future state tax amnesty program for the next 10 consecutive tax years beginning in calendar year 2015.
 
What Does CohnReznick Think?
Taxpayers who are eligible to participate in the Program and who are not contesting the amounts due should strongly consider participating in the Program. Taxpayers who are contesting any outstanding liabilities should evaluate their position as well as the potential benefits of participating in the Program to determine how they should proceed.

Contact

For more information, please contact Matthew Nick, a director in CohnReznick’s State and Local Tax Practice, at matthew.nick@cohnreznick.com or 860-271-7933 or Patrick Duffany, partner and State and Local Tax Practice Leader, at patrick.duffany@cohnreznick.com or 959-200-7270.
 
To learn more about our State and Local Tax Practice, visit our webpage.


Any advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues. Nor is it sufficient to avoid tax-related penalties. This has been prepared for information purposes and general guidance only and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is made as to the accuracy or completeness of the information contained in this publication, and CohnReznick LLP, its members, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.

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