Levins Tax Law
Schedule your initial consultation:

Experienced and Trusted
Representation From A Tax
Attorney And Former IRS Agent
And "BIG 4" Tax Partner

Photo of Attorney Gerard J. Levins

What does it take to qualify for tax amnesty in Massachusetts?

Understanding what it takes to qualify for tax amnesty is important for those seeking relief from IRS penalties.

Fully reporting every minute detail on a tax return is sometimes not feasible for everybody in Massachusetts. Those who for whatever reason have had difficulty in the past making payments to the IRS may be dealing with back taxes as well, which can pile up and become a challenge to deal with in a timely manner. Thankfully, there are amnesty options for anybody who qualifies.

Amnesty is a special condition that can be granted by the IRS whereby a person can get additional time to pay off a previously owed amount. Furthermore, an amnesty can provide a specified amount to be paid, and if that amount is paid within the designated time period, all previous liabilities can be forgiven. Those seeking debt forgiveness or a time extension may qualify for an amnesty program if they satisfy certain conditions.

The tax types available for amnesty

Recently, in 2016, there was an amnesty extended to a large amount of Massachusetts taxpayers that allowed most tax types to be eligible. Taxes covered under the International Fuels Tax Agreement are not covered in Massachusetts amnesty. Abandoned bottle deposits, the deeds excise, and the preferred provider excise also were not covered. Otherwise, all tax types are eligible.

The taxpayers available for amnesty

Those taxpayers who were unable to report their taxes properly can be extended amnesty. It is also an option for those who did not file a tax return the previous year. These periods can also be extended to anyone not currently registered with the Department of Revenue. Businesses and individuals can qualify for amnesty programs.

The importance of promptness

If someone facing collections from the IRS does qualify for an amnesty program, it is important that he or she takes action before the end of the period that has been extended. The aim when an opportunity like this is provided is to encourage underreported or delinquent taxpayers to be compliant. Criminal prosecution is a very real danger to those who fail to meet the deadline set in place. Throughout the duration of an amnesty, if the payments are made, than all penalties can be waived, however, if payments are not made, then all penalties can be resumed in full.

Those who are considering applying for amnesty from tax debts owed should look at all possible options and evaluate whether it is a viable and effective option. Consulting with an attorney who practices tax law in the local area may be a helpful course of action. It may be possible to reach an arrangement with the IRS that is satisfactory for both parties.