Massachusetts governor Maura Healey has signed into law the 2025 fiscal year budget which includes a new tax amnesty program set to go into effect in Fiscal Year 2025. This program offers a unique opportunity for taxpayers to clear their outstanding tax debts while avoiding most penalties. Here’s what you need to know about this upcoming initiative.
What is the Tax Amnesty Program?
The tax amnesty program is a 60-day initiative established by the Massachusetts Commissioner of Revenue. The program is designed to encourage taxpayers who have fallen behind on their taxes to come forward and settle their debts. In exchange for their participation and compliance, the commissioner will waive most penalties.
When Does the Program Start?
While the exact start date has not been announced, the program is set to run in FY 25 and will end by June 30, 2025. This gives taxpayers a limited window to take advantage of this opportunity.
Who is Eligible?
The amnesty program applies to tax returns due on or before December 31, 2024. The specific tax types, tax periods covered, and applicable look-back periods will be determined by the tax commissioner.
What are the Benefits?
Participating in the tax amnesty program can provide significant benefits. Most notably, the program allows taxpayers to pay their outstanding tax debts without incurring the usual penalties, including late filing and late payment penalties. Note the commissioner does not have the authority to waive interest.
Conclusion
The new Massachusetts tax amnesty program represents a valuable opportunity for taxpayers to resolve their outstanding tax liabilities and avoid most penalties. However, it’s important to act quickly, as the program is only available for a limited time.
If you have any questions about how the amnesty program may apply to you, please call us at (401) 921-2000 or contact us here and stay tuned for more updates as we get closer to the launch of the program.