Cannabis
QSBS Planning for Cannabis Businesses Seeking Stronger After-tax Outcomes
How early structure decisions and ongoing compliance can help cannabis operators exclude millions in federal taxes during business exits.
Massachusetts taxpayers with unfiled returns, underreported tax, and other tax liabilities have a unique opportunity through the Massachusetts 2024 Tax Amnesty Program. This limited-time initiative offers significant relief by waiving penalties for individuals and businesses that file outstanding returns and pay tax and interest owed for tax periods with returns due by December 30, 2024. AAFCPAs advises that clients review their tax history carefully to identify any liabilities that could be resolved through this amnesty, as it may provide substantial financial benefits while helping to avoid future enforcement actions.
The program covers most tax types administered by the Massachusetts Department of Revenue (DOR), including personal income tax, corporate excise tax, trusts, estates, and sales tax, among others. While penalties are waived, interest on unpaid taxes will still be assessed, and the program does not provide protection from criminal prosecution in cases involving fraudulent activity.
How to Participate
To take part in the program, taxpayers must file outstanding tax returns and pay the full amount of the tax and interest due for tax periods with returns due by December 30, 2024. Taxpayers with an existing tax liability will receive an Amnesty Eligibility Letter.
This amnesty program can be utilized if you have a tax liability related to:
- Unfiled returns, underreported tax, and/or other unpaid assessments.
- A current audit that will result in an assessment of penalties.
- Pending Resolution, Appellate Tax Board, and Collection cases.
Note: Non-filers may be eligible for a three-year limited look-back period.
To have your eligible penalties waived, you must:
- Be an eligible taxpayer.
- Submit an Amnesty Request on MassTaxConnect beginning November 1.
- Pay all tax and interest included in the Amnesty Request.
- File all required returns with DOR by December 30, 2024.
While this program provides a valuable opportunity for taxpayers to resolve past issues without the burden of penalties, businesses and individuals should carefully evaluate their overall tax situation before applying. AAFCPAs advises that taxpayers consult with tax professionals to ensure compliance with all requirements and to avoid future complications.
How We Help
AAFCPAs provides comprehensive support for clients navigating the complexities of tax compliance that spans business, individual, and fiduciary tax through federal income tax, State and Local Tax (SALT), tax credit transactions, and international tax. We help clients assess eligibility for tax amnesty programs, ensure accurate filings, and advise on long-term compliance strategies to prevent future issues. This ensures a holistic approach that unites the expertise of our multi-disciplinary team of Certified Public Accountants (CPAs), tax strategists, and CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals.
If you have questions, please contact Kelly Zack, MST, Director, State & Local Tax at 774.512.4001 or kzack@aafcpa.com—or your AAFCPAs Partner.
