Massachusetts Tax Amnesty: What You Need to Know

Key Takeaways:

• Massachusetts Tax Amnesty 2024 offers penalty relief for unfiled returns or outstanding tax liabilities from periods before December 31, 2024.

• Eligible taxpayers can request waivers on penalties for personal income, corporate excise, sales and use, and other taxes from November 1 through December 30, 2024.

• MGO’s State and Local Tax team can help you determine eligibility, prepare returns, and file amnesty requests for the program.

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If you are a Massachusetts taxpayer who missed filing a tax return, filed an amended return, has unpaid taxes, or is currently involved in an audit or appellate review, don’t miss this valuable limited-time opportunity to get penalty relief.

From November 1, 2024, to December 30, 2024, the Massachusetts Department of Revenue is offering a tax amnesty program. This program allows eligible taxpayers to request a waiver of penalties on outstanding tax liabilities for any filing periods with a return due date on or before December 31, 2024.

What Types of Taxes Are Covered?

This program includes a variety of tax types, such as:

• Personal Income Tax

• Corporate Excise Tax

• Partnership Income Tax

• Sales and Use Tax

• Trusts and Estates

• Marijuana Retail Tax

• Room Occupancy Tax

• Pass-Through Entity Withholding

• And more (you can find a full list of eligible and ineligible tax types on the Massachusetts Department of Revenue website)

Who Is Eligible?

Taxpayers may qualify for amnesty if they have:

• Unfiled returns, underreported income, or outstanding tax obligations.

• Audits for periods with returns due on or before December 31, 2024.

• Pending resolution or appellate tax board cases.

• Open collection cases.

Who Is NOT Eligible?

Taxpayers are not eligible if they:

• Received amnesty relief in 2015 or 2016 for the same tax type and period.

• Are looking to waive penalties on taxes already paid.

• Are requesting a refund or credit for overpayment.

• Are under a tax-related criminal investigation or prosecution.

• Are currently in bankruptcy.

Special Rules for Non-Filers

For eligible non-filers, the program offers a limited look-back period of three years. This means qualifying non-filers will only need to submit returns for the last three years (January 1, 2022 – December 31, 2024).

However, this limited look-back period does not apply to non-filers who have been contacted by the Massachusetts Department of Revenue about unfiled returns, taxpayers responsible for trustee taxes (such as sales and use, withholding, and marijuana retail taxes), or those filing estate tax returns.

How to Participate in the Amnesty Program

To participate in the Massachusetts tax amnesty program, you must:

1. Submit an amnesty request through MassTaxConnect.

2. Pay the full amount of tax and interest owed by December 30, 2024.

3. File all required returns (via MassTaxConnect or third-party software) by December 30, 2024.

How MGO Can Help 

Navigating the Massachusetts tax amnesty program can be complex. Our State and Local Tax team is here to guide you every step of the way. We can help you:

• Determine if you or your business have a Massachusetts filing obligation.

• Analyze any nexus exposure and find potential liabilities.

• Prepare and file the required returns accurately and on time.

• Confirm your amnesty request is submitted properly in compliance with all state guidelines.

MGO has extensive experience helping clients with state and local tax matters, including amnesty programs. Our team is committed to helping you resolve outstanding tax issues, minimize penalties, and stay compliant with state tax regulations.

Don’t wait — reach out to our team today to find how we can help you save.