State launches 60-day tax amnesty program for businesses
State officials announced Monday they're launching a 60-day business tax amnesty program, effective immediately, in a bid to draw payments from delinquent taxpayers.
The program was authorized this year by Gov. Charlie Baker and the legislature to generate money to help close a midyear budget deficit. Program supporters hope to receive roughly $18 million by waiving unpaid penalties and interest for those who pay up.
According to the Department of Revenue (DOR), about 24,000 qualifying taxpayers will receive amnesty notices this week notifying them that the program will run from March 16 through May 15.
A similar amnesty program was administered in 2014 and geared toward individual taxpayers. According to preliminary DOR figures, $57 million in outstanding taxes was collected from 61,000 individual filers under that program.
The new program covers financial institutions, insurance companies, public utilities and banks, as well as estate taxes, fiduciary income taxes and the individual use tax on motor vehicles, according to the department. To have unpaid penalties and interest waived, payments must be made by May 15.
The amnesty offer will not be extended to those who have paid outstanding taxes and interest and only owe penalties, those who have signed settlement agreements, or taxpayers who are the subject of a tax-related criminal investigation or prosecution.
Taxpayers who participate in the program will not be eligible for future amnesty programs for 10 years.
House Minority Leader Brad Jones proposed a corporate tax amnesty program last year, and Gov. Baker included it as part of his plan earlier this year to close a $768 million fiscal 2015 budget gap. The corporate amnesty is the first to be offered to businesses in Massachusetts in 12 years, according to Jones' office, with programs in 2002 and 2003 generating $91.6 million and $174 million, respectively.
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