Massachusetts recently announced a 60-day limited amnesty program that commenced on March 16 and ends on May 15, 2015. Under the amnesty program, Massachusetts will waive all penalties if a taxpayer pays on or before May 15, 2015, the taxes and interest owed.
The amnesty program is open to any taxpayer who receives a tax amnesty notice from the Massachusetts Department of Revenue for tax liabilities assessed on or before Jan. 1, 2015. Taxpayers engaged in litigation regarding their tax liability and those who are the subject of tax-related criminal or fraud investigations are ineligible for the amnesty program.
The tax types eligible for amnesty include:
- Corporate excise taxes, including taxes imposed on:
- Financial institutions and banks
- Insurance companies
- Public utilities
- Estate taxes
- Fiduciary income taxes
- Individual use taxes on motor vehicles
As a condition of participating in the amnesty program, taxpayers are required to waive their rights to contest the liability or obtain a refund of any amounts paid as a result of the amnesty program. Taxpayers who participate in this program will not be eligible for any future tax amnesty programs for 10 years. Because of these restrictions, taxpayers should consider carefully the pros and cons of participation in the amnesty program.