What You Need to Know About the Tax Amnesty Program

feeling freeA provision in the FY15 Massachusetts state budget establishes a tax amnesty program for two consecutive months during the 2015 fiscal year for certain tax types.

What is this tax amnesty program?

When you don’t pay your taxes in full when they are due, interest and a variety of penalties continue to be assessed until payment in full is received by the DOR. If you qualify for this tax amnesty and pay your taxes and interest in full, the Department will waive all associated penalties.

What are the dates for the tax amnesty program?

The tax amnesty will take place during the months of September and October, 2014.

How do I participate?

Tax amnesty notices showing the tax and interest due, along with the penalties to be waived, will be mailed in early September to taxpayers who qualify. If you pay the tax and interest shown on the bill on or before October 31, 2014, the Commonwealth will waive the unpaid penalties for the period. Please note that the amnesty only applies to assessments that were on the books on or before July 1, 2014.

What types of taxes are eligible?

Personal income tax and most non-corporate business taxes are included in the program. For a complete listing of all eligible taxes see TIR 14-8.

How do I pay?

There are three convenient ways to pay the amnesty balance due. You can choose to pay the amnesty balance by credit card, personal check or online electronic payment from your checking or savings account using the DOR website.

When making a payment through any of these methods, you must provide the “bill number” listed in the upper right hand corner of your Tax Amnesty Notice.

Methods of payment:

1. On-line payment

Businesses:A convenient way to pay is online through DOR’s WebFile for Business. This application will allow you to make electronic payments directly from a checking or savings account and provides additional services and features for managing your tax account with DOR. Click the link above, login, and select “Make a Bill Payment”

Individuals: A convenient way to pay is online through DOR’s WebFile for Income. This application will allow you to make electronic payments directly from a checking or savings account. Click the link above and select “Make Payments for Returns, Bills, & Notices”;

2. Pay by credit card

You may pay your amnesty balance using a third party credit card vendor. The vendor has been approved by the Commonwealth for this purpose and a convenience fee will apply. Pay by credit card.

3. Pay by check

If paying by check, it’s very important that you attach the coupon provided on your Tax Amnesty Notice and your payment must be postmarked by October 31, 2014. Don’t miss the deadline by having your check returned because it was improperly completed. Your check must be made out to Commonwealth of Massachusetts and must be signed to be processed.

About cozbycpa

Heather L. Cozby is a CPA on the South Shore and Cape Cod. The managing partner of Cozby & Company, LLC, Heather has the resources and experience necessary to provide quality professional services on a timely basis and at a reasonable cost. She specializes in tax planning & preparation; audit, review & compilation services; management advisory services; bookkeeping; and accounting. Her unique niche is in working with homeowners’ associations and condominium trusts, advising with rental real estate, and providing outsourced financial consulting for mid-sized companies. She is more entrepreneurial than most accountants, and offers the best of both worlds - providing the services of a larger firm while retaining the ability to connect with her clients on a personal level.
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