TAX NEWS - DECEMber 2009

Massachusetts TAX Amnesty: New law enacts a two-month tax amnesty program during 2010

H.B. 4359, signed by gov. 11/24/09. Effective immediately, new law authorizes the establishment of a tax amnesty program or a period of two consecutive months within fiscal year 2010, to be determined by the Commissioner, where such period must expire no later than June 30, 2010. Eligible participants will receive a full waiver of penalties for failing to:
URL: http://www.mass.gov/legis/bills/house/186/ht04pdf/ht04359.pdf

- Timely file any proper return for any tax type and for any tax period;
- File proper returns which report the full amount of the taxpayer's liability for any tax type and for any tax period;
- Timely pay any tax liability; or
- Pay the proper amount of any required estimated payment toward a tax liability.

The law provides that the "scope of the amnesty program in terms of the particular tax types and periods covered, including any limited look-back period for unfiled returns, shall be determined by the Commissioner." The program does not authorize the waiver of interest or any amount treated as interest. The Commissioner may offer tax amnesty to those taxpayers that have either any unpaid self-assessed liability, or that have been assessed a tax liability, whether before or after their filing of a return, which assessed liability remains unpaid.

An additional penalty not to exceed $500 may apply to eligible taxpayers that fail to participate in the amnesty program.