Baker-Polito Administration Releases Income Tax Guidance and Announces Penalties Waived for Corporate Excise Returns and Payments

Baker-Polito Administration Releases Income Tax Guidance and Announces Penalties Waived for Corporate Excise Returns and Payments

BOSTON – The Baker-Polito Administration today released guidance regarding the extension of the 2019 state individual income tax filing and payment deadline from April 15 to July 15 due to the COVID-19 outbreak, and announced that the Department of Revenue (DOR) will waive any late-file and late-pay penalties for corporate excise returns and payments due April 15 that are filed and paid by July 15.

This guidance, publicized in the form of a Technical Information Release (TIR) from DOR, clarifies that the extension for personal income taxpayers applies to 2019 returns and payments as well as the first installment of estimated tax due April 15. The second installment of estimated tax due June 15 will also now be due July 15.

The extension of the personal income tax return deadline is being implemented pursuant to legislation and applies to personal income tax, estate and trust income tax, and income tax due with a partnership composite return with an April 15 due date. It also applies to an April 2020 tax installment owed by a personal income taxpayer with respect to deemed repatriated income. Taxpayers that have previously filed their 2019 returns but have not yet made the associated payments have until July 15 to make such payments.

Additionally, DOR will waive late-file and late-pay penalties for corporate excise (including financial institution and insurance premiums excise) returns and payments until July 15. The waiver of penalties applies to corporate excise returns and payments with an original due date of April 15, including those of certain S corporations and non-profits that file on a fiscal-year basis and have tax returns and payments due April 15.

This income tax relief is automatic, and taxpayers do not need to file any additional forms to qualify.

Individuals and companies with questions or concerns regarding taxes can contact the Massachusetts Department of Revenue at (617) 887-6367 or send a secure e-message through MassTaxConnect. 

For more information and to view the TIR please click here.