On April 3, the Massachusetts Department of Revenue (“DOR”) released a Technical Information Release (“TIR”) that announced tax filing and payment relief for personal income tax and payment relief for corporate excise tax, in response to the COVID-19 pandemic.
The TIR stated that Massachusetts personal income tax filings and payments originally due April 15, 2020 are now due July 15, 2020. Additionally, first and second quarter installment of tax due April 15, 2020 and June 15, 2020 are now due July, 15, 2020.
Although the DOR did not extend corporate excise filing or payment due dates, the DOR will waive any late-file and late-pay penalties that may apply to returns and payments due April 15, 2020, as long as they are filed and paid by July 15, 2020. By law, interest cannot be waived.
Please note, corporate excise taxpayers with an April 15, 2020 return due date that seek an automatic extension, must still pay the amount required for such extension by April 15, 2020. A taxpayer that pays the amount required for an automatic extension on July 15, 2020 will not have a valid extension. In the latter case, late-file and late-pay penalties will still be waived for the period April 15, 2020 through July 15, 2020, but penalties may accrue going forward until the applicable return is filed and payment is made.
According to the recent release, the July 15, 2020 due date applies to personal income tax, estate and trust income tax, and income tax due with a partnership composite return with an April 15, 2020 due date. In addition, it applies to an April 2020 tax installment owed by a personal income taxpayer, with respect to deemed repatriated income. For more details, please visit the Massachusetts Department of Revenue TIR 20-4.
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Tarra Curran is a Managing Director and Leader of the New England State and Local Tax Practice. She can be reached at email@example.com or 401.626.3240.
Ann Brown is a Senior Tax Manager in the New England State and Local Tax Practice. She can be reached at firstname.lastname@example.org or 617.761.0658.
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