Tax Amnesty Massachusetts: Limited tax amnesty for select business tax liabilities will run from April 1, 2010 through June 1, 2010

Technical Information Release TIR#10-5, Massachusetts Department of Revenue (3/12/10). Pursuant to legislation enacted during 2009 authorizing establishment of a tax amnesty program within fiscal year 2010 [H.B. 4359], Massachusetts Department of Revenue has announced a two-month amnesty period commencing on April 1, 2010 and ending on June 1, 2010.

Tax amnesty program will apply to tax years or periods ending on or before December 31, 2009 and is limited to taxpayers with the following existing business tax liabilities: sales/use tax, sales tax on telecommunications services, meals tax, meals tax local option, materialman sales tax, withholding income, performer withholding, pass-through entity withholding, lottery annuity withholding, room occupancy excise, room occupancy excise local option, convention center financing fees on room occupancy in select cities, convention center financing surcharge for sightseeing tours, convention center financing surcharge on vehicle rentals in Boston, convention center financing surcharge on parking in select cities, deeds excise, cigarette excise, cigars and smoking tobacco excise, club alcohol beverage excise, gasoline excise, special fuels excise, special fuels excise local option, and boat/recreational vehicles sales tax.

The department will notify taxpayers of their eligibility to participate in this amnesty program, and only those taxpayers to whom a "Tax Amnesty Notice" has been issued will be eligible. If a taxpayer is notified by the department that it is eligible and the taxpayer pays the full amount of tax and interest due for any period as shown on this notice, the department is authorized to waive all unpaid penalties including those imposed for failure to timely file a return; failure to file a proper return; failure to timely pay a tax liability; failure to file, report or pay electronically; and failure to pay the proper amount of any estimated tax payment for such period.

If an eligible taxpayer fails to make full payment of all tax and interest due under tax amnesty program for each tax period for which the taxpayer receives a bill, the department may impose an additional amnesty penalty, not to exceed $500 per taxpayer, to be added to and become part of the outstanding balance due.