TAX DEBT RELIEF OPTIONS – Massachusetts Department of Revenue

M&M Financial has been successfully resolving back tax liabilities for small businesses and individuals from Massachusetts since 2007 and nationwide since 2005.  We deal with the IRS and State taxing authorities, so you do not have to!  

If you or your business owes the Massachusetts Department of Revenue back-taxes, we recommend first reading your MA-DOR Taxpayer Bill of Rights and The Collecting Process.

Below is some information that will help you start resolving your state tax liabilities.  If you have questions and would like to talk to a licensed Tax Resolution Specialist please do not hesitate to call us at 866-487-5624.

PAYMENT PLANS TO RESOLVE MASSACHUSETTS 

MA-DOR Payment Agreements vary depending on if the liability is an individual or business tax.  Below are some basic guidelines.  

Personal Payment Agreements

• You must receive a Notice of Assessment prior to setting up a Payment Agreement. 
• A down payment may be required. 
• You may be able to set up 36-month payment plan via MassTaxConnect.
• Proof of financial circumstances will likely be required if you need more than 36 months to pay.
• You might have to contact MA-DOR directly to set up a payment plan if 
  • Your tax liability is large
  • You’ve ignored the collection process 
  • Your past compliance history is great

Business Payment Agreements

• Business owners may be required to submit personal tax returns, an Individual Collection Information Statement, and a Business Collection Information Statement to set up a business Payment Agreement. 
• You may be required to submit a Certificate of Corporate Vote authorizing responsible persons to enter into a Payment Agreement on behalf of the business. 
• The Payment Agreement will need to be signed by an Officer or other Responsible Person of the business.
• Payment frequency may be bi-weekly or monthly. 

Find Administrative Forms

Quick Tip:  Some business taxes are “Trust” taxes which allow MA-DOR to assess the tax to the business owner personally, even if the business is structured as a Corporation or LLC.

REDUCE MA-DOR TAX DEBT

Offer in Compromise

Similar to the IRS Offer In Compromise, MA-DOR does have an Offer in Compromise that allows qualifying taxpayers to settle their outstanding tax liabilities for a lesser amount.  This is a great program for individuals that have -

• suffered through financial hardships, 
• a lack of equity in assets, and 
• an ability to pay monthly.  

The application process is in-depth and reviewed closely by the DOR.  The Offer in Final Settlement is typically not a good option for operating businesses.  

Penalty Relief

The MA-DOR may abate penalties in some cases. You will be required to prove that you have Reasonable Cause for the accrual of the tax liability and penalties.  When submitting your penalty abatement request, use Massachusetts Form ABT, Application for Abatement.  It’s important to provide as much supporting information and back up documents as possible with your request.  

Quick Tip:  Submitting your Penalty Waiver to MA-DOR is time sensitive.  Here are the Guidelines for the Waiver and Abatement of Penalties.

MASSACHUSETTS TAX RESOLUTION CASE EXAMPLES

The Massachusetts Department of Revenue has some flexibility when it comes to back tax liabilities.  Each case varies based on factors such as your compliance history, type of tax owed and total amount past due.  Here are some case examples in your state negotiated by M&M.



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