The Massachusetts Department of Revenue (DOR) provides individual taxpayers, fiduciaries, partnerships, and filers of estate tax returns an automatic extension of time to file their tax returns as long as they have paid at least 80% of the total amount of tax due on or before the payment due date. Taxpayers meeting this payment requirement will be granted a 6-month extension to file their applicable return. See TIR 16-10 for more information.
Eligible taxpayers include taxpayers filing Form 1, Form 1-NR/PY, Form 2, Form 2G, Form 3, Form 3M, Form M-990T-62, and Form NRCR, and estates filing Form M-706.
Effect of Extension
Once granted, the 6-month extension runs from the original due date for filing the return. A taxpayer may file a return at any point during the extension period. An extension to file a return does not extend the due date for payment of any tax due.
If an extension payment is required to reach the 80% threshold, taxpayers are encouraged to pay electronically using MassTaxConnect.
If no payment is required, no action is needed to request an extension, it is automatic. MassTaxConnect will not accept an extension payment of zero and paper extension forms submitted without payment will not be processed.
An individual taxpayer who is required to pay $5,000 or more to qualify for an extension must make the payment electronically. This requirement can be met by submitting your extension payment through MassTaxConnect or through third party software if your vendor supports it. For all electronic filing and payment requirements, see TIR 16-9.
Estates seeking an extension of time to pay the estate tax must still request approval from DOR by filing Form M-4678. Form M-4678 may be filed electronically using MassTaxConnect.
Penalties and Interest
An extension will be considered void if 80% of the total tax liability is not paid on or before the original due date of the return. Void extensions are subject to penalty and interest charges from the original due date. Any portion of the tax not paid on or before the due date of the return is subject to a late payment penalty of 1% per month of the tax due, up to a maximum of 25%. Additionally, returns not filed on or before the due date are subject to a late return penalty of 1% per month of the tax due, up to a maximum of 25%. Interest will also be charged on any tax not paid on or before the original due date.