Massachusetts Governor Enacts 2016 Budget Bill
On July 17, 2015, Massachusetts Governor Charlie Baker signed the fiscal 2016 budget into law. This budget, among other items, authorizes the Department to establish a tax amnesty for the 2016 fiscal year. In addition, the governor delayed the implementation of FAS 109 combined reporting deduction schedule for 5 years and extended the length of the deduction from 7 to 30 years.
The authority given to the revenue commissioner to authorize an amnesty program will be available to any taxpayer who failed to file returns due for any tax period beginning before January 1, 2014. Amnesty will only be provided to taxpayers who file the required returns and pay the tax shown as due on the return during the amnesty period along with accrued interest. Should a taxpayer fail to pay the whole liability in full by June 30, 2016, the commission will retain any payments made and apply it against the outstanding liability; the tax amnesty will no longer apply.
When the amnesty program is announced, it will be for a period of 60 days within the fiscal year 2016 and will expire no later than June 30, 2016. Amnesty will be granted to a taxpayer who voluntarily files the proper returns and pays the full tax due plus interest. Penalties will be waived during this amnesty but the taxpayer will still be required to pay interest. The revenue commissioner will communicate the scope, periods covered, and types of taxes that will be allowed under amnesty when the program is announced.
For more information on the amnesty program and other information, click here.