UHY Reports: Limited Time Tax Amnesty Programs in Massachusetts and Alabama

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The programs allow the taxpayer to file delinquent returns and waive penalties associated with late filings. The programs also limit the look-back period for outstanding tax returns.

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Various states offer tax amnesty programs throughout the year. The programs allow the taxpayer to file delinquent returns and waive penalties associated with late filings. The programs also limit the look-back period for outstanding tax returns. Taxpayers who believe they may have delinquent tax exposure should consider participating in the amnesty programs to limit their tax liability. Massachusetts and Alabama are now offering tax amnesty programs.

MASSACHUSETTS

  • Program available from April 1 – May 31, 2016.
  • Look-back period – three years (otherwise, unlimited look-back period).
  • Eligibility – Any individual or business who is not currently registered, who has not filed a tax return, or who has not reported the full amount of tax owed due on or before Dec. 31, 2015. Some exceptions are available; contact us to discuss your options.
  • Not eligible – Does not cover existing liabilities (tax year 2016 going forward). Any taxpayer who participated in 2014 or 2015 tax amnesty programs are not eligible for the same periods in this program.
  • Taxes covered – All tax types are included except for “preferred provider” excise and those covered under IFTA.
  • Benefits – Pay only the tax and interest owed. Tax penalties and any interest due on the penalties are waived.

ALABAMA

  • Program available from June 30 – Aug. 30, 2016 for taxes due prior to Jan. 1, 2015 or taxes for taxable periods that began before Jan. 1, 2015.
  • Look-back period – three years (otherwise, unlimited look-back period).
  • Eligibility – Any individual or entity subject to specified taxes imposed by the State of Alabama.
  • Not eligible – Participation in the program is conditioned upon the agreement of the taxpayer that the right to protest or initiate an administrative or judicial proceeding is barred.
  • Taxes covered – Most taxes; contact us to discuss.
  • Benefits – All penalties waived and half of the interest.

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Chris Clark
UHY LLP
+1 (586) 843-2637
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