| Date: | 02/05/2026 |
|---|---|
| Organization: | Massachusetts Department of Revenue |
| Regulatory Authority: | Massachusetts General Laws |
| Official Version: | Published by the Massachusetts Register |
Emergency Regulation 830 CMR 62C.16B.1
830 CMR: DEPARTMENT OF REVENUE
830 CMR 62C.00: STATE TAX ADMINISTRATION
830 CMR 62C.16B.1: Advance Payments of Sales and Use Tax and Room Occupancy Excise
830 CMR 62C.16B.1 is hereby amended by adding the following subsection (e) to section (6):
(e) Waiver or Abatement of Penalty for Undue Financial Hardship. For taxes due on or after April 1, 2021 and before March 1, 2026, the Commissioner may waive or abate, in whole or in part, the penalty imposed under G.L. c. 62C, § 16B, if the Commissioner determines that the penalty would cause undue financial hardship. The Commissioner’s determination as to whether undue financial hardship exists is separate from any determination as to whether a taxpayer has reasonable cause for failure to pay the penalty under G.L. c. 62C, § 33. Furthermore, the determination will focus on the hardship faced by the taxpayer itself, not the taxpayer’s individual owners. For purposes of this subsection, the Commissioner will consider undue financial hardship to exist when the taxpayer meets the following three conditions:
i. The taxpayer has an outstanding balance of penalties imposed under G.L. c. 62C, § 16B (“penalties”) on taxes due on or after April 1, 2021 and before March 1, 2026;
ii. The taxpayer does not have an outstanding balance of any tax or excise; and
iii. Either of the following circumstances applies:
a. The total assessed penalties exceed the amount of penalties that would have been assessed had no advance payments been made over the prior 12 months of tax filings. For taxpayers qualifying for undue financial hardship under this provision, the amount of penalties abated will equal the difference between the amount of penalties assessed and the amount of penalties that would have been assessed had no advance payments been made over the prior 12 months of tax filings.
b. The taxpayer otherwise demonstrates to the Commissioner, by clear and convincing evidence, that the imposition of the penalty would cause undue financial hardship. This evidence should include a copy of the taxpayer’s current balance sheets and other supporting documentation describing the taxpayer’s financial circumstances, total business income, total business expenses, available assets, and total liabilities.
The amount abated under this subsection will not exceed the current outstanding balance of penalties and no refund will be issued as the result of any waiver or abatement.
To apply for an abatement of penalties imposed under G.L. c. 62C, § 16B, taxpayers should complete a Request for Waiver of Advance Payment Penalties for Undue Financial Hardship and submit the form, along with all required attachments, to the Commissioner by March 1, 2026.
Regulatory Authority
830 CMR 62C.16B.1: M.G.L. c. 14, § 6(l); M.G.L. c. 62C, § 3
Emergency Amendment Promulgated 2/5/26 - Section (6)(e)
