Massachusetts Tax Changes - October 2024
Week Of 09.30.2024
The Massachusetts Department of Revenue has announced the fuel excise tax rates for the fourth quarter of 2024
Massachusetts Fuel Tax Rates (October 1, 2024 - December 31, 2024):
- Gasoline and Diesel: $0.24 per gallon
- Liquefied Gases and Propane: $0.184 per gallon
- Aircraft Fuel (Jet): $0.132 per gallon
- Aviation Gasoline: $0.346 per gallon
Massachusetts Tax Amnesty Program: A Second Chance to Get Right with the DOR
Massachusetts is offering a Tax Amnesty Program for eligible taxpayers from November 1, 2024, through December 30, 2024. This program provides a chance to resolve outstanding tax liabilities, including unfiled returns, underreported tax, and unpaid assessments, with most penalties waived.
Who's Eligible?
- Taxpayers with unfiled returns, underreported tax, or unpaid assessments
- Those with a current audit that will result in penalties
- Taxpayers with pending resolution, Massachusetts Appellate Tax Board, and collection cases
Who's Not Eligible?
- Those who received prior amnesty relief in 2015 or 2016 for the same tax type and period
- Taxpayers seeking a waiver of penalties related to a tax that was already paid
- Those seeking a refund of tax or a credit for an overpayment
- Taxpayers under tax-related criminal investigation or prosecution
- Taxpayers in active bankruptcy
- Those who have been the subject of a tax-related criminal investigation or prosecution and filed a false or fraudulent return, statement, or fraudulent amnesty return
How to Apply:
- Submit an amnesty request on MassTaxConnect by December 30, 2024.
- File all required returns and pay all tax and interest included in the amnesty request by December 30, 2024.
Specific Scenarios:
- Amended Returns: Taxpayers with underreported tax liability on their original return should submit an amnesty request on MassTaxConnect, indicating it's for an amended return. They must enter the tax liability based on the amended return calculation, pay the total tax and interest, and file an amended return through standard channels by December 30, 2024.
- Non-Filers and First-Time Filers: Those who determine they were subject to Massachusetts taxation but failed to file a return must submit an amnesty request on MassTaxConnect, indicating it's for a new tax liability. They must enter the tax liability based on the return calculation, pay the total amount of tax and interest, and file the original return electronically by December 30, 2024.
- Taxpayers Under Audit: Taxpayers with an open audit must contact their assigned DOR auditor to discuss amnesty. They must agree to the audit adjustment, submit an amnesty request on MassTaxConnect, indicate it's for either an amended return or a new tax liability, enter the tax liability based on the audit calculation, file a return to report the additional tax, and make full payment of tax and interest by December 30, 2024.
Important Notes:
- Only one amnesty request may be submitted per account type, but the request can include multiple periods.
- The DOR will issue a determination letter for each account/tax type when the taxpayer's amnesty request has been approved, denied, or approved for certain periods but denied for others.
- Amnesty approval will only be granted for periods where eligible taxpayers have submitted an amnesty request on MassTaxConnect, paid the total tax and interest due, and filed all required returns by December 30, 2024.
For more information and FAQs, visit the DOR website.
Week of 09.30.2024
Massachusetts Business Tax Rates—Massachusetts fourth quarter fuel tax rates.
The Massachusetts Department of Revenue has announced the fuel excise tax rates for the fourth quarter of 2024. Effective October 1, 2024 through December 31, 2024, the rates will be as follows: gasoline and special fuels (diesel) remain unchanged at $0.24 per gallon; liquefied gases and propane decrease to $0.184 ($0.22 per gallon in Q3 2024); aircraft (jet) fuel decreases to $0.132 ($0.141 per gallon in Q3 2024), and aviation gasoline increases to $0.346 ($0.33 per gallon in Q3 2024). (Massachusetts Fuel Excise Tax Table-4th Quarter 2024, Mass. Dept. Rev., 09/24/2024.)
Massachusetts—Fuels & Minerals Taxes—Massachusetts fourth quarter fuel tax rates.
The Massachusetts Department of Revenue has announced the fuel excise tax rates for the fourth quarter of 2024. Effective October 1, 2024 through December 31, 2024, the rates will be as follows: gasoline and special fuels (diesel) remain unchanged at $0.24 per gallon; liquefied gases and propane decrease to $0.184 ($0.22 per gallon in Q3 2024); aircraft (jet) fuel decreases to $0.132 ($0.141 per gallon in Q3 2024), and aviation gasoline increases to $0.346 ($0.33 per gallon in Q3 2024). (Massachusetts Fuel Excise Tax Table-4th Quarter 2024, Mass. Dept. Rev., 09/24/2024.)
Massachusetts Announces Tax Amnesty for 2024
The Massachusetts Department of Revenue (DOR) announced that an amnesty program will be open for eligible taxpayers from November 1, 2024, through December 30, 2024. Most penalties will be waived for eligible taxpayers who submit an amnesty request on MassTaxConnect beginning November 1, 2024. Taxpayers must file all required returns and pay all tax and interest included in the amnesty request by December 30, 2024. (Tax Amnesty 2024 Announced, Mass. Dept. of Rev., 09/19/2024.)
Eligibility. The following taxpayers are eligible: those with unfiled returns, underreported tax, and/or other unpaid assessments; those with a current audit that will result in an assessment of penalties; and taxpayers with pending resolution, Massachusetts Appellate Tax Board, and collection cases. The following are not eligible: taxpayers that received prior amnesty relief in 2015 or 2016 for the same tax type and period; those seeking a waiver of penalties related to a tax that was already paid; those seeking a refund of tax or a credit for an overpayment; a taxpayer under tax-related criminal investigation or prosecution; taxpayers in active bankruptcy; and those that are, or have been, the subject of a tax-related criminal investigation or prosecution, who filed a false or fraudulent return, statement, or fraudulent amnesty return.
Account types. Eligible taxpayers include personal income taxpayers, corporate excise tax, trust, estate tax, financial institution tax, sales and use tax, alcoholic beverages, marijuana retail taxes, meals, food and beverage taxes, motor vehicle tax, partnership tax, pass-through entity withholding, and other tax types listed in 2024 Amnesty Eligible Account Types.
Preparation. Taxpayers with an eligible existing tax liability, will receive an Amnesty Eligibility Letter. Taxpayers will fill in their personal information, the Letter ID, and a valid payment method like bank account or credit card information.
Those filing a new return must complete the return to calculate the amount due. Once done, such taxpayers can complete the amnesty request using the information from the return. The return must be e-filed or mailed after the amnesty request is submitted.
Taxpayers filing an amended return must complete the amended return to calculate the increase in amount due. Once completed, they need to log on to MassTaxConnect to complete the amnesty request using the information from the amended return and then e-file or mail the amended return.
Process. Starting November 1, 2024, taxpayers who wish to apply for amnesty must submit their amnesty request on MassTaxConnect by December 30, 2024. Only one amnesty request may be submitted per account type, but the request can include multiple periods. To request amnesty for multiple account types, taxpayers must submit a separate amnesty request for each account type.
The DOR will send an amnesty eligibility letter to taxpayers with an existing tax liability, including liabilities resulting from a closed audit. To request amnesty, such taxpayers must enter the amnesty Letter ID to verify their amnesty request, and pay the total amount of tax and interest shown on MassTaxConnect by December 30, 2024. Because additional interest may have accrued from the date of the amnesty eligibility letter, taxpayers are urged to pay the tax and interest shown when submitting the amnesty request.
Amended returns. Taxpayers with underreported tax liability on their original return seeking amnesty for the underreported amount should submit an amnesty request on MassTaxConnect indicating that it is for an amended return; they must enter the tax liability based on the amended return calculation; pay the total tax and interest shown on MassTaxConnect; and file an amended return through standard channels to show the increase in tax by December 30, 2024.
Non-filers and first-time filers. Those who determine that they were subject to Massachusetts taxation but failed to file a return will be required to submit an amnesty request on MassTaxConnect starting November 1, 2024; they must indicate that the request is for a new tax liability; enter the tax liability based on the return calculation; pay the total amount of tax and interest shown on the amnesty request, and file the original return electronically by December 30, 2024 on MassTaxConnect or through third-party software (Modernized e-File). Taxpayers can file on paper if they cannot e-file, unless mandated to e-file. All returns included in the amnesty request must be filed, and full payment of the tax and interest must be paid by December 30, 2024.
Eligible non-filers who have not been previously contacted by the DOR may be eligible for a 3-year limited look-back period, meaning they would only be required to file returns and pay all tax and interest due for returns due from January 1, 2022, through December 31, 2024, without regard to any extension.
Taxpayers under audit. Taxpayers with an open audit must contact their assigned DOR auditor to discuss amnesty. Taxpayers must agree to the audit adjustment; submit an amnesty request on MassTaxConnect starting November 1, 2024; indicate that the request is for either an amended return or a new tax liability; enter the tax liability based on the audit calculation; file a return to report the additional tax and make full payment of tax and interest by December 30, 2024.
Amnesty determination notice. The DOR will issue a determination letter for each account/tax type when the taxpayer's amnesty request has been approved, denied, or approved for certain periods but denied for others. Amnesty approval will only be granted for periods where eligible taxpayers have submitted an amnesty request on MassTaxConnect , and have paid the total tax and interest due and filed all required returns by December 30, 2024.
FAQs and more information. The DOR has issued answers to frequently asked questions (2024 Tax Amnesty FAQs) and will provide a link to the amnesty request form by November 1. 2024.
Week of 09.30.2024
Massachusetts Business Tax Rates—Massachusetts fourth quarter fuel tax rates.
The Massachusetts Department of Revenue has announced the fuel excise tax rates for the fourth quarter of 2024. Effective October 1, 2024 through December 31, 2024, the rates will be as follows: gasoline and special fuels (diesel) remain unchanged at $0.24 per gallon; liquefied gases and propane decrease to $0.184 ($0.22 per gallon in Q3 2024); aircraft (jet) fuel decreases to $0.132 ($0.141 per gallon in Q3 2024), and aviation gasoline increases to $0.346 ($0.33 per gallon in Q3 2024). (Massachusetts Fuel Excise Tax Table-4th Quarter 2024, Mass. Dept. Rev., 09/24/2024.)
Massachusetts—Fuels & Minerals Taxes—Massachusetts fourth quarter fuel tax rates.
The Massachusetts Department of Revenue has announced the fuel excise tax rates for the fourth quarter of 2024. Effective October 1, 2024 through December 31, 2024, the rates will be as follows: gasoline and special fuels (diesel) remain unchanged at $0.24 per gallon; liquefied gases and propane decrease to $0.184 ($0.22 per gallon in Q3 2024); aircraft (jet) fuel decreases to $0.132 ($0.141 per gallon in Q3 2024), and aviation gasoline increases to $0.346 ($0.33 per gallon in Q3 2024). (Massachusetts Fuel Excise Tax Table-4th Quarter 2024, Mass. Dept. Rev., 09/24/2024.)
Massachusetts Announces Tax Amnesty for 2024
The Massachusetts Department of Revenue (DOR) announced that an amnesty program will be open for eligible taxpayers from November 1, 2024, through December 30, 2024. Most penalties will be waived for eligible taxpayers who submit an amnesty request on MassTaxConnect beginning November 1, 2024. Taxpayers must file all required returns and pay all tax and interest included in the amnesty request by December 30, 2024. (Tax Amnesty 2024 Announced, Mass. Dept. of Rev., 09/19/2024.)
Eligibility. The following taxpayers are eligible: those with unfiled returns, underreported tax, and/or other unpaid assessments; those with a current audit that will result in an assessment of penalties; and taxpayers with pending resolution, Massachusetts Appellate Tax Board, and collection cases. The following are not eligible: taxpayers that received prior amnesty relief in 2015 or 2016 for the same tax type and period; those seeking a waiver of penalties related to a tax that was already paid; those seeking a refund of tax or a credit for an overpayment; a taxpayer under tax-related criminal investigation or prosecution; taxpayers in active bankruptcy; and those that are, or have been, the subject of a tax-related criminal investigation or prosecution, who filed a false or fraudulent return, statement, or fraudulent amnesty return.
Account types. Eligible taxpayers include personal income taxpayers, corporate excise tax, trust, estate tax, financial institution tax, sales and use tax, alcoholic beverages, marijuana retail taxes, meals, food and beverage taxes, motor vehicle tax, partnership tax, pass-through entity withholding, and other tax types listed in 2024 Amnesty Eligible Account Types.
Preparation. Taxpayers with an eligible existing tax liability, will receive an Amnesty Eligibility Letter. Taxpayers will fill in their personal information, the Letter ID, and a valid payment method like bank account or credit card information.
Those filing a new return must complete the return to calculate the amount due. Once done, such taxpayers can complete the amnesty request using the information from the return. The return must be e-filed or mailed after the amnesty request is submitted.
Taxpayers filing an amended return must complete the amended return to calculate the increase in amount due. Once completed, they need to log on to MassTaxConnect to complete the amnesty request using the information from the amended return and then e-file or mail the amended return.
Process. Starting November 1, 2024, taxpayers who wish to apply for amnesty must submit their amnesty request on MassTaxConnect by December 30, 2024. Only one amnesty request may be submitted per account type, but the request can include multiple periods. To request amnesty for multiple account types, taxpayers must submit a separate amnesty request for each account type.
The DOR will send an amnesty eligibility letter to taxpayers with an existing tax liability, including liabilities resulting from a closed audit. To request amnesty, such taxpayers must enter the amnesty Letter ID to verify their amnesty request, and pay the total amount of tax and interest shown on MassTaxConnect by December 30, 2024. Because additional interest may have accrued from the date of the amnesty eligibility letter, taxpayers are urged to pay the tax and interest shown when submitting the amnesty request.
Amended returns. Taxpayers with underreported tax liability on their original return seeking amnesty for the underreported amount should submit an amnesty request on MassTaxConnect indicating that it is for an amended return; they must enter the tax liability based on the amended return calculation; pay the total tax and interest shown on MassTaxConnect; and file an amended return through standard channels to show the increase in tax by December 30, 2024.
Non-filers and first-time filers. Those who determine that they were subject to Massachusetts taxation but failed to file a return will be required to submit an amnesty request on MassTaxConnect starting November 1, 2024; they must indicate that the request is for a new tax liability; enter the tax liability based on the return calculation; pay the total amount of tax and interest shown on the amnesty request, and file the original return electronically by December 30, 2024 on MassTaxConnect or through third-party software (Modernized e-File). Taxpayers can file on paper if they cannot e-file, unless mandated to e-file. All returns included in the amnesty request must be filed, and full payment of the tax and interest must be paid by December 30, 2024.
Eligible non-filers who have not been previously contacted by the DOR may be eligible for a 3-year limited look-back period, meaning they would only be required to file returns and pay all tax and interest due for returns due from January 1, 2022, through December 31, 2024, without regard to any extension.
Taxpayers under audit. Taxpayers with an open audit must contact their assigned DOR auditor to discuss amnesty. Taxpayers must agree to the audit adjustment; submit an amnesty request on MassTaxConnect starting November 1, 2024; indicate that the request is for either an amended return or a new tax liability; enter the tax liability based on the audit calculation; file a return to report the additional tax and make full payment of tax and interest by December 30, 2024.
Amnesty determination notice. The DOR will issue a determination letter for each account/tax type when the taxpayer's amnesty request has been approved, denied, or approved for certain periods but denied for others. Amnesty approval will only be granted for periods where eligible taxpayers have submitted an amnesty request on MassTaxConnect , and have paid the total tax and interest due and filed all required returns by December 30, 2024.
FAQs and more information. The DOR has issued answers to frequently asked questions (2024 Tax Amnesty FAQs) and will provide a link to the amnesty request form by November 1. 2024.