What you need to know about the Massachusetts tax amnesty program

This post has been updated to reflect new information; it was originally published on August 16, 2024.

Good news for taxpayers with Massachusetts back taxes: The Massachusetts Department of Revenue will administer a tax amnesty program from November 1 through December 30, 2024. While tax amnesty is in effect, the Commonwealth of Massachusetts will waive most penalties for qualifying taxpayers who fulfill the terms of the program.

The fiscal year 2025 budget bill authorized the Massachusetts Department of Revenue to establish the amnesty program sometime before June 30, 2025, and to set the scope of the tax amnesty, including eligible tax types, periods covered, and the look-back period. The Department of Revenue announced the dates of the program on September 10, 2024.

Here’s what we know about the upcoming Massachusetts tax amnesty program:

• Massachusetts tax amnesty program will run November 1, 2024, through December 30, 2024

• Tax amnesty will apply to tax returns due on or before December 31, 2024

• The department may apply limited look-back periods for unfiled returns, not to exceed four years

• The department is not authorized to waive interest due on delinquent tax returns

• Participating taxpayers must pay all tax and interest included in the Amnesty Request and file all required returns by December 30, 2024

• Taxpayers who participate in this tax amnesty program are not eligible to participate in future tax amnesty programs for 10 years (starting in calendar year 2024)

If you owe Massachusetts back taxes, you may want to consider this tax amnesty program. It provides Massachusetts tax penalty forgiveness for eligible businesses and individuals.

We’ll update this FAQ as more information about the Massachusetts Department of Revenue amnesty program becomes available.

A tax amnesty is essentially a quid pro quo — a limited time when a state reduces or waives penalties and/or interest and fees on specified delinquent taxes for qualifying taxpayers who voluntarily pay them under the terms of the amnesty. Participating taxpayers get a clear conscience and a break on penalties and/or interest. The states get a boost in tax collections.

States may or may not invite unlicensed businesses to come forward without fear of facing criminal penalties. Often, tax amnesty programs apply only to taxpayers already registered with the state.

Tax amnesty programs can cover all taxpayers or just certain taxpayers, all tax types or only certain tax types. State legislatures typically set the parameters. Tax departments usually administer tax amnesty programs.

November 1, 2024, through December 30, 2024. Eligible taxpayers may submit an Amnesty Request through MassTaxConnect starting November 1, and must file all required returns by December 30, 2024.

The Massachusetts tax forgiveness program will be open to qualifying business and individual taxpayers that failed to file eligible required returns for any tax period on or before December 31, 2024. 

Taxpayers under audit may be able to participate in tax amnesty. If that’s you, contact your assigned auditor for more details.

You are not eligible for Massachusetts tax amnesty in 2024 if:

• You received amnesty relief in 2015 or 2016 for the same tax type and period

• You’re seeking a waiver of penalties related to tax already paid

• You’re seeking a refund of tax or a credit for an overpayment

• You’re under tax-related criminal investigation or prosecution

• You’re in active bankruptcy

Additionally, taxpayers determined to have acted with fraudulent intent don’t qualify for Massachusetts tax penalty forgiveness. The commissioner cannot waive penalties for any taxpayer who is or has been the subject of a tax-related criminal investigation or prosecution, or for any taxpayer who delivers or discloses (or has delivered or disclosed) any fraudulent application, document, return, or other statement.

Tax amnesty will apply to eligible tax returns due on or before December 31, 2024. For taxpayers who comply with the terms of the tax amnesty program, the commissioner may apply limited look-back periods for unfiled returns, not to exceed four years.

Per the updated departmental guidance, eligible non-filers who have never been contacted by the department may be eligible for a three-year limited look-back period. In other words, they’d only be required to file returns and pay the tax and interest due for returns due from January 1, 2022, through December 31, 2024.

Amnesty will only apply to penalties the commissioner has the sole authority to waive. Eligible taxes include:

• Alcoholic beverages excise taxes 
• Business use tax 
• Cigarette, cigars, and cigar and smoking tobacco excise taxes 
• Corporate excise tax 
• Electronic nicotine delivery systems tax and excise tax 
• Estate tax 
• Marijuana excise tax 
• Meals, food, and beverage tax 
• Personal income tax 
• Room occupancy tax 
• Sales tax 
• Trust taxes

Tax types not eligible for a penalty waiver under the 2024 tax amnesty program include: fuel taxes administered under the International Fuel Tax Agreement, public utility excise tax, and the vehicle rental surcharge.

The department will waive most penalties on back taxes owed by qualifying business and individual taxpayers.

To qualify for the waiver, the taxpayer must voluntarily file the proper returns and pay the full amount of tax shown on their returns (or upon the commissioner’s assessments) during the amnesty period, plus all applicable assessments and fees. The waiver will not apply to any period for which a taxpayer doesn’t file property returns.

Interest is not eligible for Massachusetts tax amnesty. Additionally, tax amnesty does not apply to penalties due to:

• The underpayment of tax required to be shown on the return (Section 35A)

• Inconsistent reporting of income or disclosure (Section 35D)

• The sale or offers for sale of an automated sales suppression device or phantom-ware (Section 35F)

Taxpayers wishing to apply for tax amnesty must submit an Amnesty Request through MassTaxConnect between November 1 and December 30, 2024. You may only submit one request per account type, but it can be for multiple periods. A separate Amnesty Request must be submitted for each account type.

The Department of Revenue will send an Amnesty Eligibility Letter to taxpayers with an existing tax liability.

Tax amnesty programs don’t come along often. This may be a great option for taxpayers owing Massachusetts back taxes. 

Want to know more about back taxes? Read Back taxes: How to know if you owe them, what can you do if you’re obligated to pay them.