If you live or own a business in Massachusetts and have not filed your business or individual tax returns, or you have underreported taxes, you have a special opportunity to get on track and pay no penalties through a state tax amnesty that will be open this April and May. You’ll want to run, not walk, when it comes to getting in on this tax amnesty, because once it closes on May 31, 2016 penalties will continue to accumulate, along with taxes and interest.
Do you qualify for this amnesty? You do if you meet one of these two basic qualifications:
- You have not filed one or more business or individual tax returns despite being obligated to do so.
- You have underreported taxes on a previously filed business or individual tax return and you, (of course) want to correct the error.
Now is a good time to step up to bat when it comes to delinquent or underreported taxes.
While filing all tax returns and accurately reporting taxes is the smart—and right—thing to do, there’s another reason that you may want to consider when it comes to reporting taxes: Massachusetts has recently launched MassTaxConnect (now being used for businesses but soon to be expanded for individuals), a state-of-the-art tax system that can easily identify businesses and individuals who are underpaying taxes or not filing at all. Needless to say, now’s the time to take advantage of the amnesty and avoid penalties.
While it may not be as exciting as watching the Red Sox, taking care of your unfiled or underreported taxes before you face fines and penalties is the equivalent of a financial home run. Take action now and get more details about the Massachusetts tax amnesty at mass.gov/TaxAmnesty.