Monday, the Massachusetts House adopted several tax related amendments to their version of the fiscal year 2015 (July 1, 2014- June 30, 2015) budget. If the House’s budget is adopted, one recently-adopted amendment, would create a two-month tax amnesty program for delinquent sales and use tax, pass-through entity withholding, meals tax, and other taxes. The amnesty program would allow taxpayers to settle past-due tax liabilities within the two month amnesty period while avoiding costly penalties.
According to Rep. Brad Jones, the House Republican leader and a sponsor of the amendment, the amnesty program would allow the state to collect past-due revenue that the state would not have collected without amnesty. According to Jones, a similar amnesty program in 2002 brought in over $100 million of taxes to the state.
Update: The Senate adopted an amendment to their proposed budget which would create an identical tax amnesty program. A Senate amendment to extend the program to include corporate excise tax was defeated.
Reed Smith will keep you posted on any further progress with tax amnesty legislation.