Mass. tax amnesty program is good, but it could be improved (CommonWealth Beacon)
Below is an excerpt from an article published by the CommonWealth Beacon on October 14 calling for more to be done to Massachusetts’ Tax Amnesty program. The program primarily helps those with the means to pay, neglecting distressed taxpayers unable to gather a lump sum. Greater Boston Legal Services’ Luz Arevolo and Angela Divaris, attorneys with the low-income taxpayer clinic, wrote the article.
The Massachusetts Department of Revenue announced a tax amnesty program that will run from November 1 to December 30, 2024. The program will forgive penalties for some taxpayers who are able to pay in full their tax balances and interest. When the Legislature included the amnesty in the state budget it projected raising $100 million in revenue.
The program will resolve the tax burdens of those who can make amends within the limited time window. A win-win, it seems. Except for those distressed taxpayers who cannot quickly come up with a lump sum to pay off their outstanding debts.
Amnesties targeting a class of individuals who can pay up do not take into account the individual circumstances of a taxpayer who can’t. Though not well known, Massachusetts law includes an offer in final settlement program that has been on the books since 1998. These individual settlements are akin to personalized amnesties. In our practice, however, tax debtors with very limited resources have a much better chance at negotiating their troubles away with the IRS than with the state.
