DOR News - July 2021

Massachusetts Department of Revenue matters of interest for July 2021.

Table of Contents

Refunds for waived penalties going out to some taxpayers

Due to the COVID-19 pandemic, Massachusetts is waiving penalties related to tax on 2020 unemployment income. Self-assessed underpayment of estimated tax penalties will be included in the waiver.  Notices will go out if penalties have previously been paid and the penalty waiver results in an overpayment. The taxpayer doesn’t have to do anything. Refunds will be issued by paper check or the refund will be applied to taxes owed. 

Bills to taxpayers for outstanding 2020 income tax payments

Taxpayers should start to see bills for outstanding payments on 2020 income tax returns in August. When a bill is received (Notice of Assessment), the taxpayer can request a payment agreement. Remember, there are no penalties assessed through the end of 2021 if the tax due is related to unemployment income.

August 14-15 for sales tax holiday

Dates are set for this year’s sales tax holiday. Taxpayers will get a break from paying sales tax on items purchased for personal use on August 14-15. Find out what is and isn’t included in the holiday from sales tax by reviewing the FAQs.

Emergency sick leave reimbursement

A $75 million fund is available to Massachusetts employers that compensated employees who were unable to work due to specific COVID-19-related reasons. You can find information on the reimbursement and how to apply for it through MassTaxConnect. A video tutorial will help with the completion of the application. Funds will be available until exhausted or September 30, 2021, whichever comes first.

We need to know when a business closes to avoid collection actions

It’s important for us to know if a business closes. If we believe it’s still operating, notices go out and collection actions can happen. For example, when returns aren’t filed on time, a Notice of Failure to File is issued. When there’s no response, tax is assessed. Collection actions can follow including seizing money from a bank account or paycheck, employing a collection agency, or placing a tax lien on property. We don’t want that to happen simply because we don’t know that a business closed. A video tutorial on how to close an account can help with the process.

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