This year, many things have changed in the sales tax world. And one of the big ones is that, starting November 1, 2024, Massachusetts is giving businesses a break on past-due taxes (including sales tax) with the 2024 Massachusetts Tax Amnesty Program. If you owe tax in Massachusetts, this program may help you waive penalties and reduce interest. But don’t wait—this opportunity only runs until December 30, 2024.
Here’s what you need to know to decide if it’s right for you and your business.
What the 2024 Massachusetts Tax Amnesty Program Does
Massachusetts created this program to help businesses get up to date on overdue taxes without facing hefty penalties. Think of it as a reset button, just for a limited time. The program lets you pay what you owe without the extra costs, making it easier to clear your record with the state. If you’ve been avoiding this, now’s the time to get things in order and avoid future headaches.
Eligibility: Do You Qualify?
Who Can Apply?
The program is designed for businesses with tax obligations in Massachusetts, including those who may have missed filing, underreported taxes, or have outstanding payments due. This includes businesses with nexus in the state, meaning you either have a physical presence or meet economic thresholds for sales.
Eligible parties include:
- Businesses with unfiled tax returns or underreported taxes for any period before December 31, 2024.
- Companies that have existing assessments with the state or are currently in collections.
Who’s Out?
The program excludes businesses previously granted amnesty in 2015 or 2016 for the same tax types, those under criminal investigation, and businesses in bankruptcy. For a full list of eligible and ineligible groups, click here.
How to Apply
Get Ready
Before you dive into the application:
- Review your records. Check for any unfiled tax returns or unpaid assessments.
- Consult a tax advisor if you’re unsure—mistakes now can mean missed benefits.
The Application Process
Once you’re set, head to MassTaxConnect starting November 1, 2024, to apply. If you received an Amnesty Eligibility Letter from the Department of Revenue, use it to verify your request and streamline the application.
Submit all required documents and make full payment by December 30, 2024. Note that you’ll need a separate request for each account type (e.g., sales tax vs. other tax obligations).
After Applying
Make Your Payment
Be sure to pay the full tax and reduced interest amount by December 30, 2024. Missing the deadline could cost you the amnesty benefits. This is a one-time shot to clear your record and get a fresh start.
Stay Compliant Going Forward
Once you’re back on track, stick with timely filings to avoid future penalties, interest, or audits. Massachusetts is expected to ramp up enforcement for non-compliant businesses, so take advantage of the amnesty now to avoid costly consequences later.
Ready to Clear Your Sales Tax Record? Let’s Make It Happen Together!
If your business has struggled to keep up with Massachusetts tax obligations, the Tax Amnesty Program is a rare chance to make things right without the usual penalties. Take action now, and save your business from future costs and complications.
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