Massachusetts Senate Bill S1859

Massachusetts 2023-2024 Regular Session

• Introduced: 2/16/23
• Refer: 2/16/23

Caption

Providing for settlements of tax liability

Impact

The enactment of S1859 will likely streamline the process by which taxpayers can resolve their tax liabilities, fostering a more efficient tax administration system. The bill outlines clear guidelines that the commissioner must adhere to when evaluating settlement offers, thus enhancing procedural transparency and allowing taxpayers facing financial difficulties a chance to negotiate their tax obligations. This initiative may lead to increased taxpayer compliance and potentially more revenue collected by the state as it could encourage previously noncompliant taxpayers to settle their dues.

Summary

Bill S1859 proposes significant amendments to Chapter 62C of the General Laws concerning tax liability settlements in Massachusetts. The bill allows the commissioner to enter into written agreements with taxpayers to settle tax liabilities for prior periods. This approach aims to provide a structured framework for financial negotiations, ensuring that both the state and taxpayers can address outstanding tax debts effectively. It emphasizes the importance of finality in agreements and mandates specific conditions for taxpayers to meet compliance before settlement offers can be made.

Contention

Notably, the bill includes provisions requiring that any settlement proposal which seeks to accept a significantly reduced payment (specifically those $50,000 or more less than what is owed) must be submitted to the Attorney General for review. This oversight is likely to be a point of contention, provoking discussions about the balance between protecting taxpayer interests and ensuring that substantial amounts owed to the state are not forgiven without thorough scrutiny. Furthermore, the limitations placed on the ability to reopen settled cases underlines the bill's aim to provide certainty and closure for taxpayers and the state alike.