To protect the Commonwealth's interests, the collector will file a Notice of Massachusetts Tax Lien. The tax lien is a public record and attaches to all of the taxpayer's real and personal property and may prevent the sale or transfer of the property attached.
A Notice of Massachusetts Tax Lien is recorded at the Secretary of State's Office in Boston and at the Registry of Deeds of the county in which the taxpayer resides and/or where any real property is situated. When the Notice of Massachusetts Tax Lien is filed, the taxpayer will be notified in writing of the amount of the lien and the places it has been recorded.
The Notice of Massachusetts Tax Lien indicates the tax type, the assessment date and the amount owed, including any statutory additions to tax, i.e., accrued interest and penalties. The amount owed is current as of the date of the lien notice. In general, interest and applicable penalties will continue to accrue until the tax liability, whether disputed or not, is paid in full.
Tax liens will remain in effect for 10 years from the date of assessment or for a longer period if permitted by I.R.C. § 6322.
631.1.1. Full Release of Lien
A taxpayer that wants to obtain a full release of a lien must pay the amount shown on the lien plus any additional interest and penalties accrued to the date of payment. If the taxpayer wants an immediate release of the lien, payment must be made by bank check, personal money order, certified check, or attorney's Client Fund check. If payment is made by:
- Personal check, the lien will ordinarily not be released until 30 days after the date the payment is credited to the taxpayer's DOR account. If the taxpayer requests an earlier release, a copy of the cancelled check or a statement from their bank indicating that the funds cleared the bank must accompany the request. This delay is necessary to assure that the check has been honored.
- ACH or Debit card, the lien will ordinarily not be released until 20 days after the date the payment is credited to the taxpayer's DOR account.
- Credit card, the lien will ordinarily not be released until 1 day after the date the payment is credited to the taxpayer's DOR account.
The Department of Revenue will make every effort to release tax liens by notifying the agencies where they have been recorded. If the taxpayer finds that the lien has not been released, he or she may request a release by contacting:
Chief, Collections Bureau
Massachusetts Department of Revenue
P.O. Box 7021
Boston, MA 02204
For further information, call (617) 887-6400.
The Department of Revenue will record all releases of Massachusetts tax liens unless written instructions to the contrary from the taxpayer are received by the Collections Bureau Chief or it is a Partial Release of Lien or a Subordination of Lien.
631.1.2. Partial Release of Lien and Subordination of Lien
A taxpayer may find that he or she can pay a tax in full or in part only if the Department either partially releases a lien or allows another lien holder to have priority over DOR's lien. See 830 CMR 62C.50.1 for rules describing when DOR may issue a partial release of its lien or may subordinate its lien.
To obtain either a partial release of lien or a subordination of the lien, a taxpayer must submit a written request to:
Chief, Collections Bureau
Massachusetts Department of Revenue
P.O. Box 7021
Boston, MA 02204
The following information should be included:
- a description of all real property subject to the lien with correct title reference and location;
- a description of all personal property subject to the lien including the name of manufacturer, model number, and the name of the office in which any encumbrances on the property are recorded;
- the address and full legal description of any real or personal property sought to be released;
- a complete explanation of the request for the release and a payment proposal detailing the amount of money being offered in exchange for it;
- a statement of all encumbrances on the property including the property to be released and the date the encumbrances were recorded; and
- a copy of the Notice of Massachusetts Tax Lien.
In considering an application for partial release of lien, the Commissioner may require further evidence or documentation, such as a supporting appraisal of the property, the Closing Disclosure, Settlement Statement, or its equivalent, indicating how the funds are being distributed if a property is being sold or refinanced, etc.
631.1.3. Waiver of Corporate Excise Tax Lien
The Waiver of Corporate Excise Tax Lien letter certifies that in accordance with the provision of Chapter 62C, section 52, of the Massachusetts General Laws, the Commissioner of Revenue waives the lien on the detailed assets of the transferor corporation that may arise under section 51, immediately prior to the proposed sale or transfer of such assets.
Corporations and certain LLCs that file corporate or corporate combined returns may ask for such a waiver when selling all, or substantially all, of its assets within the Commonwealth.
A Waiver of Corporate Excise Tax Lien is applicable to:
• Corporations that file corporate returns
• LLCs that file corporate returns or file corporate combined returns
• Disregarded LLCs that file corporate combined returns
Non-profit corporations are ineligible as they do not file corporate returns.
To apply for a Waiver of Corporate Excise Tax Lien, go to https://mtc.dor.state.ma.us/MTC. Log into MassTaxConnect account. Select Request a Certificate of Good Standing. At the application type, click on Waiver of Corporate Tax Lien and complete the application and submit.
If in full compliance, a Waiver of Corporate Excise Tax Lien will be issued to the taxpayer. If not in good standing, the taxpayer will be informed if they have an outstanding liability or unfiled returns on their account. Once the taxpayer has satisfied any overdue returns and/or outstanding liabilities they must wait at least 24 hours to reapply for a Waiver of Corporate Excise Tax Lien.
See AP 613.3, Waiver of Corporate Excise Tax Lien.
REFERENCES:
G.L. c. 62C, §§ 32(e), 50, 51, 52
I.R.C. § 6322
830 CMR 62C.50.1
TIR 99-18
AP 610, Bills and Demands for Payment
AP 613, Requesting a Certificate of Tax Compliance
Notice of Massachusetts Tax Lien
Release of Massachusetts Tax Lien
Payment Agreement
Settlement Statement