Massachusetts DOR Announces New Tax Amnesty Program for 2025

Governor Maura Healey’s recent Fiscal Year 2025 (FY25) budget has introduced a new tax amnesty program in Massachusetts, designed to offer taxpayers a chance to settle unpaid taxes and avoid penalties. With the Department of Revenue (DOR) releasing detailed guidance, the program is set to run from November 1 to December 30, 2024. 

This 60-day period provides eligible taxpayers the chance to file outstanding tax returns and pay any owed taxes and interest without facing most penalties. Taxpayers with unfiled returns, underreported taxes, or unpaid assessments may find this an opportunity to address their obligations with the Commonwealth of Massachusetts. 

Key Details of the Massachusetts Tax Amnesty 2024 

• Program Dates: November 1, 2024 – December 30, 2024 

• Eligibility: Taxpayers with unfiled returns, underreported taxes, or unpaid assessments for tax periods with returns due on or before December 31, 2024. 

• Penalties Waived: Most penalties will be waived for eligible taxpayers who file and pay their outstanding tax liabilities within the amnesty period. 

• Application Portal: Amnesty Requests must be submitted via MassTaxConnect, the DOR’s online portal. 

The program covers a variety of taxes, including personal income, corporate excise, and sales and use taxes. However, taxpayers under criminal investigation or those who received amnesty relief for the same tax type in 2015 or 2016 are excluded. 

Who Qualifies for the Amnesty? 

Individuals, businesses, estates, and trusts with outstanding tax liabilities may be eligible for this amnesty program. Non-filers, in particular, may qualify for a three-year limited look-back period, which would require them to file and pay taxes for only the last three years, as opposed to the standard seven-year requirement. 

Steps to Participate 

1. Check Your Eligibility: Review your tax history and any notices from the DOR to confirm eligibility. 
2. Submit an Amnesty Request: Starting November 1, requests can be submitted through MassTaxConnect, where you’ll provide personal details and a valid payment method. 
3. File the Required Returns: Ensure all necessary returns are filed, and taxes and interest are paid by December 30, 2024. 
4. Make Payments: Use MassTaxConnect to settle any tax owed before the deadline to qualify for the waiver of penalties. 

Preparing for Amnesty: What to Expect 

Taxpayers with existing liabilities will receive an Amnesty Eligibility Letter from the DOR. If you’re filing new or amended returns, you’ll need to calculate the total amount owed before submitting your Amnesty Request. For those under audit, it’s essential to reach out to your assigned auditor to ensure you comply with all necessary steps. 

For businesses, special attention should be paid to obligations such as sales and use tax, withholding tax, and other industry-specific requirements. It’s also essential to understand that amending underreported returns will require the submission of updated filings to reflect the correct tax liability. 

Consulting with a Tonneson + Co Tax Advisor 

Given the complexity of navigating multiple tax obligations, many taxpayers may benefit from consulting with a tax advisor. A professional can help ensure that: 

• You meet the eligibility requirements of the amnesty program. 

• You accurately calculate the amount owed and avoid potential errors. 

• You determine whether the three-year limited look-back period applies, potentially reducing your overall tax burden. 

Final Considerations  

The Massachusetts Tax Amnesty 2024 program offers taxpayers a chance to settle outstanding tax obligations while avoiding penalties. However, as with any tax initiative, understanding the specific requirements and meeting deadlines is essential. Taxpayers are encouraged to review their options and consider consulting a tax professional to ensure full compliance and avoid potential pitfalls. 

For more information or to discuss how this program applies to your specific situation, contact Tonneson + Co. Our experienced team is here to help you navigate this complex process and provide the guidance you need to stay compliant and avoid penalties.