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Morris discusses Massachusetts tax amnesty program
with Governor Deval Patrick.
Employment-Tax "Amnesty" Currently In Effect
On February 9, 2009 the Massachusetts Department of Revenue ("DOR") announced an employment tax "amnesty" without calling it by that name.[1] The "amnesty" benefits Massachusetts employers who misclassified workers or who failed to file Massachusetts withholding, wage or information returns. Employers who come forward may find their tax liability, penalties and interest limited to periods beginning on or after January 1, 2008.[2] If the DOR does not look back to tax periods before January 1, 2008, substantial noncompliance may be forgiven. CLICK HERE FOR FULL ARTICLE. Topics Covered in This Article Include:For further details, see Massachusetts TIR 09-2 or call Attorney Morris N. Robinson at (617) 428-0055. There is no charge for an initial inquiry.
[1] TIR 09-2. This Technical Information Release is entitled "Voluntary Disclosure of Employee Misclassification or Non-filing with Respect to Withholding or Wage and Information Returns."
[2] Tax penalties will not be forgiven, however, unless the employer demonstrates that the failure to file or pay was due to reasonable cause and not to willful neglect. Interest cannot be forgiven under the employment-tax "amnesty."
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General Tax Amnesty Announcement Expected Shortly
On January 7, 2009 Governor Deval Patrick signed into law an authorization for a general tax amnesty. The scope of the amnesty - the types of taxes, the periods covered, and the look-back periods for unfiled tax returns - is to be determined by Navjeet Bal, the Massachusetts Commissioner of Revenue.At the Annual State Tax Conference of the Massachusetts Society of CPAs on January 30, 2009 Commissioner Bal suggested that this amnesty will be tightly focused. She also told Conference participants that the amnesty would not apply to foreign corporations who failed to file Massachusetts corporate excise tax returns despite "an extensive level of business activity in Massachusetts." Her reasoning is that these corporations already had an opportunity to reduce their tax liability by coming forward in calendar year 2008.[1] Some possible dimensions of the general tax amnesty follow. CLICK HERE FOR FULL ARTICLE.
Topics Covered in This Article Include:
- Look-Back Window
- Limited Time. This is a limited-time amnesty.
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Attorney Advertising. This Tax Alert is a periodical publication of M. Robinson & Company, P.C. and should not be construed as legal advice or a legal opinion on any specific facts or circumstances. The contents are intended for general information purposes only, and you are urged to consult an attorney concerning your own situation and any specific legal questions you may have. Any tax information contained in this communication is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding any federal tax penalties. |
