Massachusetts Announces Wicked Relief!

Just before the end of 1^st quarter, Massachusetts Department of Revenue announced their Tax Amnesty program for 2016, which will be open to all businesses needing to catch up on back taxes, save on typically assessed penalties, and benefit from a limited lookback period on unfiled returns (3 yrs.).

The Massachusetts Department of Revenue website has made it easier than ever to participate in the annual amnesty period which runs April 1, 2016 – May 31, 2016.  Simply navigate to the MA DOR website and complete the online amnesty return, available April 1, 2016.  Upon completion, the DOR will calculate the interest for each tax period and provide the total amnesty balance due.  Once the balance due has been presented, submit your return and electronic payment and just like that your business (and you) are out of the penalty box and into the clear!

As with any amnesty program, there’s an eligibility requirement.  Per the MA DOR website, “Amnesty is available to any business who has not currently registered with the Department of Revenue, who has not filed a tax return, or who has not reported the full amount of tax owed on a previously filed return for any tax return due on or before December 31, 2015.”  It should also be noted that amnesty does not cover existing tax liabilities, nor Taxpayers who participated in the 2014 or 2015 tax amnesties (for the same tax types or tax periods for this amnesty). (http://www.mass.gov/dor/breaking-news/amnesty/tax-amnesty-info.html)  

Thinking of taking a rain-check?  Massachusetts has spent some resources over the last year updating their new state-of-the-art tax system, so it will be easier to identify businesses that have not complied with the Massachusetts tax laws.  While the Massachusetts Department of Revenue isn’t announcing when they will begin investigating those that have surfaced on the radar, they are encouraging all delinquent taxpayers to come forward during this amnesty – or risk greater consequences, which include “escalating enforcement efforts.”

So before taking your clients out to the Green Monster for an afternoon of fun, let TaxConnex help you double check those accounts and take advantage of the “wicked” relief that Massachusetts is offering to those who participate in Amnesty 2016.