If you are a business tax payer in the state of Massachusetts, you may have recently received a tax amnesty notice. All business tax payers that qualify have been given a two month amnesty which began April 1, 2010 and will end on June 30, 2010. In order to qualify for the program you need to be a non-corporate business in the state of Massachusetts.
The amnesty program works by allowing business tax payers a break on tax penalties if they pay their tax bill, including interest, in full by June 30, 2010. If your bill is paid in full during the amnesty time period, your penalties will be waived. Tax periods that will qualify for the amnesty include all of those ending on or before December 31, 2010.
Taxes that qualify for amnesty include:
- Sales/use taxes
- Sales tax on telecommunication services
- Meals tax including the local option
- Materialman sales tax
- Payroll withholding tax
- Pass-through entity withholding
- Lottery annuity withholding
- Room occupancy excise including the local option
- Convention center financing fees on room occupancy in Boston, Cambridge, Chicopee, Springfield, West Springfield and Worcester
- Convention Center Financing surcharge for sightseeing tours
- Convention center financing surcharge on vehicle rentals in Boston
- Convention center financing surcharge on parking in Boston, Springfield and Worcester
- Deeds excise
- Cigarette excise
- Cigars and smoking tobacco excise
- Club alcohol beverage excise,
- Gasoline and special fuels excise including the local option
- Boat/recreational vehicles sales tax
If you did not receive an amnesty notice, most likely the reason is you did not meet the qualifications of the program. Businesses do not qualify for the program is they have already paid their tax bill in full, including interest, and now only owe penalty fees. Businesses also do not qualify if they have entered into and signed a tax settlement agreement on or before the program began on April 1, 2010. Finally, you will not qualify if you are under a criminal investigation on a tax related issue.
If you feel you should have received a letter to qualify you for the program and did not you can call the Massachusetts Department of Revenue at 617-887-6367 and ask for assistance.
If you have received an amnesty letter and are ready to pay your bill you have a couple of options. You can log onto the Massachusetts Department of Revenue website and pay your bill electronically. You can pay this way by either using your bank account or a credit card. You can also mail in a check with the amount due. If you choose this option your envelope must be postmarked by June 30, 2010 in order for your payment to qualify.
You should also know that while your penalties will be waived during the amnesty period, your interest will not. Your payment must include all back taxes and any accumulated interest. June 30, 2010 is the deadline and no exceptions will be made. If you decide not to pay the bill by this date, amnesty will not be granted on your penalties and the Department of Revenue will continue collection procedures. If you can only pay a portion of your bill it is important to note that you can still benefit. Penalties will be waived for any tax periods that are paid in full. Any periods not paid by the amnesty deadline will still carry penalty fees.
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