2024 Massachusetts Tax Amnesty
The Massachusetts Department of Revenue is offering amnesty for taxpayers with unfiled returns and/or unpaid taxes. The program runs from November 1 to December 30, 2024, and if the state accepts your request for amnesty, the DOR will waive the penalties on your account as long as you file the missing returns and pay the tax by the last day of the amnesty period.
In the following sections, we outline eligibility criteria, how to apply for amnesty, and options if you don't qualify for amnesty. This program runs for less than two months, and if you're behind on your tax obligations, it allows you to save money while getting back into compliance.
Do not miss out on this opportunity. To get help now, use TaxCure to find an MA-based tax pro to help you.
Key takeaways
- Massachusetts tax amnesty runs from November 1 to December 30, 2024.
- Qualifying taxpayers can catch up on back taxes and avoid penalties.
- Taxpayers with unfiled returns may only have to file the last three years of returns.
Who Is Eligible for Amnesty?
The MA 2024 amnesty program applies to individuals, businesses, estates, and trusts. You can apply for amnesty if you have unfiled tax returns, unreported taxes, or an existing tax bill.
If you're currently under audit and facing penalties, you may also qualify for amnesty. Additionally, taxpayers with pending resolution cases, pending appeals cases, and open collection cases can also qualify.
The following taxpayers are not eligible for amnesty:
- Taxpayers who want penalties waived on a tax assessment they have already paid.
- Taxpayers who want a refund of tax or a credit of an overpayment
- Taxpayers under investigation or prosecution for tax-related crimes.
- Taxpayers subject to investigation or prosecution for tax-related crimes.
- Taxpayers who received amnesty in 2015 or 2016 for the same tax type.
- Taxpayers in active bankruptcy.
- Taxpayers who filed a false return or fraudulent amnesty claim.
How to Claim Tax Amnesty
To apply for amnesty, you must complete an Amnesty Request and submit it to the MA DOR during the amnesty period. The form will be available on the DOR website starting on November 1st. Then, you must file any unfiled returns by December 30, 2024, and pay all of the tax and interest due by December 31, 2024.
You can submit one amnesty request for the same type of tax over several periods. For example, if you owe individual income tax from tax years 2021, 2022, and 2023, you only need to complete a single amnesty application.
However, if you want amnesty for multiple types of taxes—for example, withholding tax and sales tax for your business—you must complete one separate application for each type of tax account.
Here's a breakdown of the application process based on your situation:
Existing unpaid tax liability
If you have an existing unpaid tax bill, the state will send you an Amnesty Eligibility Letter. To apply for amnesty, you will need the letter ID number and your personal information. You must also be able to pay the tax due by the last day of the year.
Unfiled returns
To request amnesty related to unfiled returns, prepare the returns. You can e-file through the DOR's website or using tax prep software. If you're not required to e-file, you may mail in paper returns. Once you know how much you owe, complete the amnesty request form.
The returns must be filed by December 30 and all tax and interest paid by December 31st. Generally, as long as the DOR has not contacted you about the tax, you will only have to complete these last three years of returns, but there may be exceptions depending on the circumstances. In particular, if you collected tax from another party and did not remit it to the state, you will not have a limited lookback period.
Unreported tax liability on previously filed return
If you have an unported tax liability, you should amend the tax return you originally filed. Then, you can request amnesty from penalties on the DOR's website, but again, you must make arrangements to pay the tax due by the end of the year.
Under audit
If you're currently under audit and the audit is going to lead to a penalty assessment, talk with your auditor about the amnesty program. To qualify, you must agree to the audit adjustment and file the amnesty request between November 1 and December 30th.
When requesting amnesty, note that the request is for an amended return or a new tax liability. Then, simply make sure you file any missing returns by December 30th and pay any tax and interest due by December 31st.
Amnesty Approval or Denial
If you are approved for amnesty, the MA DOR will waive the penalties on your account and remove the interest that accrued on the penalties. Then, you must pay the tax and remaining interest due by December 31, 2024.
If the state denies your request for amnesty, penalties and interest will continue to accrue on your account, and if you don't make arrangements to pay, the DOR can pursue involuntary collection actions against you, including state tax liens and the revocation of your driver's license.
Types of Taxes Eligible for the 2024 Amnesty Program
You can request amnesty on unfiled or unpaid individual state income tax as well as the following taxes:
- Alcoholic beverages excise tax
- Aviation gasoline tax
- Boats rec vehicle tax
- Business use tax
- Club alcohol excise tax
- Cigars tax
- Cigarette tax
- Cigar and smoking tobacco excise
- Corporate combined excise
- Corporate excise
- Electronic nicotine delivery systems excise
- Electronic nicotine delivery systems tax
- Entity levy (63D) tax
- Estate tax
- Financial institution excise
- Fiduciary income tax
- Gambling withholding
- Gasoline fuel tax
- Inheritance tax
- Life insurance excise
- Lottery annuity withholding
- Marijuana retail taxes
- Meals, food, and beverage tax
- Meals tax (prior to July 1, 2024)
- Motor vehicle excise tax
- Motor vehicle sales-use tax
- Non-profit tax
- Nonresident composite tax
- Nonresidential real estate withholding
- Non-stamped cigarette Excise
- Ocean marine insurance tax
- Out-of-state contractor
- Oil spill fee
- P&C - PPO Insurance excise
- Partnership income tax
- Pass-through entity withholding
- Performer withholding
- Personal income tax
- Personal use tax
- Room occupancy tax
- Sales tax
- Sales tax services
- Satellite service tax
- Urban redevelopment excise
- Underground storage tank delivery fee
- Withholding pension
- Withholding tax
The amnesty does not apply to the following taxes:
- Abandoned bottle deposit
- Attorney General liens
- Care and custody
- Cigarette license
- Cigars license
- Deeds excise
- Deeds excise - registry
- Electronic nicotine delivery systems license
- Emergency paid sick leave
- External account
- Ferry embarkation fee
- Gasoline fuel license
- IFTA jurisdiction
- IFTA decal
- IFTA carrier excise
- Jet fuel license
- Jet fuel tax
- Miscellaneous tax refund
- Other fees & penalties
- Paid family and medical leave
- Parking facilities surcharge
- Premium pay
- Public utility excise
- Sightseeing tours surcharge
- Special fuels license
- Underground storage tank
- Vehicular rental surcharge
FAQs About Tax Amnesty in Massachusetts
Do you have to be a Massachusetts resident to apply for tax amnesty?
No, you do not need to be a resident of Massachusetts. You simply need to be a taxpayer who was required to file a return in Massachusetts.
Which tax periods are covered by the 2024 amnesty program?
You can apply for amnesty for any tax period with a return due on or before December 31, 2024.
What if you owe MA taxes and did not receive an Amnesty Eligibility letter?
If you believe that you should qualify for amnesty, contact the DOR directly or reach out to a tax professional. They can help you determine if you are eligible and what steps to take.
What should I do if I don't qualify for a penalty waiver through the amnesty program?
If you don't qualify for penalty waivers through the abatement program, you can request penalty abatement online or by filing AP627 (Application for Abatement). In particular, if you had penalties on an assessed tax that you already paid, you do not qualify for the amnesty program, but you may qualify for abatement if you can prove that you had reasonable cause for paying or filing late.
If you have unfiled returns, how many years of returns do you need to file?
If you qualify for tax amnesty, you will only need to file the last three years of returns. For example, if you were supposed to file annually, you will generally only need to file the returns from tax years 2023, 2022, and 2021. Normally, outside of amnesty, you must file the last seven years of returns to get back into compliance.
The limited look-back period only applies if the DOR has not contacted you about the unfiled tax returns. Estate tax returns are also not eligible for the limited look-back period. Finally, if you collected tax from others but didn't pay it, you must file a return for all of the unfiled periods. For example, if you have been collecting sales tax from your customers, you must file a return for every period you collected the sales tax.
Should you apply for amnesty if you don't qualify for the limited look-back period?
You can still benefit from the penalty waiver even if you don't qualify for the limited look-back period. In those situations, you will need to file all of the unfiled returns, but as long as you pay and file by the end of the year, you will avoid incurring penalties.
When was the last tax amnesty program in Massachusetts?
The last time the Commonwealth of Massachusetts offered tax amnesty was in 2016, and the last time before that was in 2002. These programs do not come along very often. So, you should take advantage of it if you have unpaid taxes or unfiled returns.
What happens if the DOR rejects my amnesty request?
If the DOR rejects your amnesty request, you will incur penalties on your balance due. You still must file any unfiled returns and pay any tax due as well as penalties and interest, and if you do not, the DOR can involuntarily collect the unpaid taxes or take other actions against you.
Does tax amnesty help if I have committed tax fraud?
No, the program does not offer amnesty for tax fraud or evasion. If you believe you have committed tax fraud or another tax-related crime, contact a tax attorney for guidance.
Where do I apply for tax amnesty?
You must apply for tax amnesty online through MassTaxConnect. Most taxpayers can apply for amnesty without setting up an online account, but in some cases, in particular, if you amend your return to report additional tax due, you will need to set up an online account.
What should I do if I make an error on my amnesty request?
You cannot amend an amnesty request so be sure that you complete the request with the correct information. If you need to add additional tax periods, you should file another amnesty request.
Do I waive any rights by applying for amnesty?
No, you do not waive any rights by applying for tax amnesty. If you file a return through the amnesty program, you have the same amount of time as usual to amend the return.
Can the DOR audit an amnesty request?
If you file a tax return related to an amnesty request, the DOR has the right to audit the return as usual.
What if I can't afford to pay by December 31, 2024?
You must pay the balance in full before December 31, 2024. If you cannot pay by that date, you will not qualify for amnesty.
What if I miss the deadline to apply for Massachusett's amnesty in 2024?
If you miss the deadline to apply for this amnesty program, you may want to look into the state's voluntary disclosure program. Like the amnesty program, voluntary disclosure allows qualifying taxpayers to avoid penalties and enjoy a limited look-back period. However, you do not qualify if the Department has already contacted you or if you are under audit. Talk with a tax pro to learn more.
Get Help Applying for Amnesty
If you're dealing with multiple tax periods, unfiled tax returns, or any other complicated situations, you may want to contact a tax professional. A tax pro based in Massachusetts understands how to deal with Massachusetts tax problems.
They can help you apply for amnesty, and if you cannot afford to pay your taxes, they can guide you through setting up a payment plan or offer in compromise on your MA back taxes.
To get help now, check out the following links to see tax pros in Massachusetts: