Section 225 Tax Amnesty Program
(a) Notwithstanding any general or special law to the contrary, the commissioner of revenue may establish a tax amnesty program during which all penalties that may be assessed by the commissioner shall be waived without the need for any showing by the taxpayer of reasonable cause or the absence of willful neglect for the failure of the taxpayer to: (i) timely file any proper return for any tax type and for any tax period; (ii) timely pay any tax liability; or (iii) pay the proper amount of any required estimated payment toward a tax liability. The waiver of a taxpayer's liability under this section shall apply if the taxpayer, prior to the expiration of the amnesty period, voluntarily files proper returns and pays the full amount of tax shown on the taxpayer's returns or upon the commissioner's assessments, including all interest due. The waiver shall not apply to any penalties that may be due pursuant to section 35A, 35D or 35F of chapter 62C of the General Laws with regard to returns filed pursuant to the tax amnesty program. The waiver of penalties shall not apply to any period for which the taxpayer does not file proper returns. The tax amnesty program shall apply to tax returns due on or before December 31, 2024. If a taxpayer comes into compliance with tax obligations pursuant to the tax amnesty program, the commissioner may apply limited look-back periods for unfiled returns, not to exceed 4 years, unless the commissioner determines that the taxpayer has acted with fraudulent intent. The scope of the tax amnesty program, including the particular tax types, periods covered and the applicability of the look-back periods, shall be determined by the commissioner.
(b) The tax amnesty program shall be established within fiscal year 2025 for a period of 60 days to be determined by the commissioner and shall expire not later than June 30, 2025. If a taxpayer fails to pay the full liability by June 30, 2025, the commissioner shall retain any payments made and shall apply the payments against the outstanding liability and the tax amnesty shall not apply.
(c)(1) The commissioner may offer tax amnesty to taxpayers who have failed to file required returns due for any tax period on or before December 31, 2024; provided, however, that the taxpayer shall file the required return and shall pay the tax shown as due on the return during the amnesty period.
(2) The commissioner shall not authorize the waiver of interest or any amount treated as interest.
(3) The commissioner's authority to waive penalties during the amnesty period shall not apply to any taxpayer who is or has been the subject of a tax-related criminal investigation or prosecution or to any taxpayer who delivers or discloses or has delivered or disclosed any false or fraudulent application, document, return or other statement.
(4) Any taxpayer who delivers or discloses a false or fraudulent application, document, return or other statement to the department of revenue in connection with a tax amnesty application pursuant to this section shall not be eligible for amnesty and shall be subject to the greater of: (i) the applicable penalties pursuant to chapter 62C of the General Laws; or (ii) a penalty not to exceed $10,000, which shall be calculated and assessed according to rules determined by the commissioner and may be subject to de minimis or other exceptions that the commissioner may consider appropriate. This penalty shall be subject to said chapter 62C and shall be added to and become part of the tax due.
(d) Tax amnesty shall not apply to penalties that the commissioner would not have the sole authority to waive including, but not limited to, fuel taxes administered under the International Fuel Tax Agreement or under the local option portions of taxes or excises collected for the benefit of cities, towns or state governmental authorities.
(e) The commissioner shall maintain records of the penalties waived pursuant to the tax amnesty program including, but not limited to: (i) the number of taxpayers provided with tax amnesty; (ii) the types of tax liability for which tax amnesty was provided and, for each type of liability, the amount of tax liability collected and the amount of penalties forgone by virtue of the tax amnesty program; and (iii) the total outstanding tax liability for amnesty-eligible taxpayers at the conclusion of the tax amnesty program after the collection of all funds pursuant to this section. The commissioner shall file a report detailing the tax amnesty program with the clerks of the senate and house of representatives, the house and senate committees on ways and means, the joint committee on revenue and the house and senate minority leaders not later than September 1, 2025. The report shall not contain information sufficient to identify an individual taxpayer or the tax amnesty provided to an individual taxpayer pursuant to this section.
(f) The commissioner shall establish administrative procedures and methods to prevent a taxpayer who utilizes the tax amnesty program from utilizing any future tax amnesty programs for the next 10 consecutive years, beginning in calendar year 2024.