Learn about penalty rates in Massachusetts

This page provides a graph of penalty rates in Massachusetts.

Penalty rates in Massachusetts

Type of Civil Penalty Penalty Amount/Rate References
Failure to File Timely Return 1% per month, or fraction thereof, of the unpaid tax up to a maximum of 25% Mass. General Laws c. 62C, § 33(a)
Failure to Pay a Tax When Due 1% per month, or fraction thereof, of the unpaid tax up to a maximum of 25% Mass. General Laws c. 62C, § 33(b)
Failure to Pay Deficiency Assessment 1% per month, or fraction thereof, of the unpaid tax up to a maximum of 25%, combined with section 33(b) above Mass. General Laws c. 62C, § 33(c)
Failure to File Return After Notice or Filing of a Fraudulent Return Up to double the tax amount determined to be due. Mass. General Laws c. 62C, § 28
Failure to Report Federal Change 10% of the additional tax Mass. General Laws c. 62C, § 30
Underpayment of Estimated Tax Penalties-Income Tax and Corporate Excise Interest at an annual rate equivalent to the federal short‑term rate plus four percentage points Mass. General Laws c. 62C § 32(a) and c. 62B, § 14(a) and (b) or G.L. c. 63B, § 3
Demand Charge $30 per demand for payment missed Mass. General Laws c. 62C, § 46 and G.L. c. 60, § 15
Dishonored Check or Failed Electronic Funds Transfer $30 or the amount of the payment, whichever is less, for payments under $1,500; 2% of the payment for payments $1,500 or greater Mass. General Laws c. 62C, § 35
Failure to File, Report or Pay Electronically Up to $100 for each failure to file returns, transfer data, or pay electronically as required by the Department Mass. General Laws c. 62C, § 33(g)
Depository Filer Failure to Make Deposits 5% of the underpayment Mass. General Laws c. 62C, § 45A
Failure to File Wage Reports Up to $25 per employee, contractor, or other recipient of periodic income or, if the result of a conspiracy between employer and recipient not to file the required report, $500 for each recipient. Mass. General Laws c. 62E, § 9
Failure to Withhold, File Returns or Pay Over Taxes Fine of $100 - $5,000, or imprisonment for not more than 1 year or both Mass. General Laws c. 62B, § 7
Failure to File Report of Income Paid to Persons $1 for each such report not filed, up to $1,000. In addition, a payor of taxable income is subject to a fine of $25 - $500 for a failure to file with DOR without reasonable cause. Mass. General Laws c. 62C, §§ 34 and 77
Fraudulent Estate Tax Returns 50% of the underpayment Mass. General Laws c. 65C, § 13
Failure to File a Partnership Return $5 for every day the partnership fails to file Mass. General Laws c. 62C, § 34
 
Promoter Failure to File a Required Report $5 for every day for which the report is not filed Mass. General Laws c. 62C, § 34
Negligence or Substantial Underpayment 20% of the underpayment Mass. General Laws c. 62C, § 35A
Return Preparer Penalty

$1,000 per return or claim 

Greater of $1,000 or 10% of understatement

Mass. General Laws c. 62C, § 35C(a)

Mass. General Laws c. 62C, § 35C(b)

Inconsistent Filing Position Equal to the amount of tax attributable to the inconsistency Mass. General Laws c. 62C, § 35D
Promoters of Abusive Tax Shelters Up to $5,000 for each client to whom the statement was made Mass. General Laws c. 62C, § 35E

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