Tax Help MD Inc - Massachusetts Signs Tax Amnesty Program into Law

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The program is expected to collect an estimated $35 million in back taxes.House Republican Leader Brad Jones said $5 million of the taxes collected will go toward the state's Substance Abuse Services Fund.

A tax amnesty sponsored by House Republicans in Massachusetts and signed into law by Gov. Deval Patrick could help many delinquent taxpayers wipe their slate clean. Taxpayers who failed to pay outstanding tax liability or failed to pay the proper amount on a required estimated tax payment are also eligible.

With this program, those who pay their outstanding taxes and interest within the designated two-month amnesty period will not be assessed penalties. This waiver will not apply to any individuals who are subjects of tax-related criminal investigations.

There have been other programs developed by State and Federal agencies for those who don’t have the money to pay their back taxes in full. Dean Michael, C.E.O of Tax Help MD Inc. states, “there are many hardship programs available nationwide for taxpayers in financial distress.”

Dean Michael said, “The IRS has to allow taxpayers enough money to pay what they consider 'absolute necessary living expenses.' These expenses include food, clothing, housing, utilities, transportation, and medical expenses.” Many American’s are living from paycheck to paycheck, barely able to make ends meet. If a delinquent taxpayer is experiencing this type of financial difficulty they may qualify for a program called 'Currently Not Collectible' (CNC). This program does not wipe your slate clean, but it does make it so IRS will not enforce collection activities such as bank levies, wage garnishments or property seizures. Once a taxpayer has been put into CNC, their qualifications are re-evaluated every 1 to 3 years. If a taxpayer is still in financial distress when re-evaluated, they continue to stay in that program for another 1 to 3 years. This process can essentially be repeated until the collections statute has expired on the debt. This means the taxpayers debt could be completely eliminated over the course of a few years.

The above mentioned program is just one of many available to delinquent taxpayers. Dean Michael says each state has their own individual hardship programs, whereas the IRS programs are available to taxpayers in every state. Most recently, Louisiana Governor Booby Jindal, signed the Louisiana Tax Delinquency Amnesty Act signed into law last year.

Mr. Michael states that it is important for the average person to know that, although an individual can complete the required paperwork necessary to qualify for the above mentioned programs, it is always best practice to hire a tax professional. “Generally there is a lot of room for error when completing tax forms, but these can be minimized by hiring a tax professional.” He adds, “Small errors on these forms can result in delay of approval or even denial.”

According to Mr. Michael, in recent months he has seen in influx of calls regarding past due state taxes. "This is very unusual, especially during slow season for the tax industry", Mr. Michael states. Many of these individuals are hoping that their state has a program similar to that of Massachusetts and Louisiana. "Although the state you reside in may not have a program similar to these, typically there are still other options" he adds. "My company has countless clients with state tax issues who, with the help of Tax Help MD, have been able to find reasonable solutions to their state and/or federal tax issues.

Individuals interested in learning more about available programs in their state are encouraged to contact Mr. Michael at Tax Help MD.

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Dean Michael
Tax Help MD Inc
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