Massachusetts Sales Tax Guide
Chapter 7: How to manage late Massachusetts sales tax return filing
Hopefully you don't need to worry about this chapter because you're getting your Massachusetts sales tax filing and remittance done on time and submitted without incident. However, in the real world, mistakes happen. In this chapter, we'll talk about how to avoid costly penalties and fines if you've missed your assigned filing deadline.What do I do if I missed my Massachusetts sales tax filing deadline?
The first thing to do is get your return filed. This is definitely one of those situations where things are "better late than never." As long as you don't submit your tax filing paperwork, or hold on to the tax dollars you've collected, you may be accruing fines and interest. It's always best to get your filing done and deal with any penalties and interest payments later.What penalties and interest payments are imposed by the Massachusetts Department of Revenue?
The Massachusetts Department of Revenue imposes the following sales tax penalties on businesses who fail to file or pay sales tax according to government policy:
- Late Payment Penalty: The penalty for a late payment of collected sales tax is equal to 1% of the unpaid tax filed on the return per month (or fraction thereof). There is a set maximum of 25%.
- Failure to File Penalty: The penalty for failing to file a return by the due date is 1% of the balance due per month (or fraction thereof). There is a set maximum of 25%.
- Interest on Unpaid Taxes: Interest is charged on any outstanding, unremitted sales tax based on the federal short-term rate (which can change quarterly) plus four percentage points, compounded daily.
Yes! If you are acquiring a business, it is strongly recommended that you contact the Massachusetts Department of Revenue and inquire about the current state of the potential acquisition. Once you've purchased the business, you will be held responsible for any and all outstanding Massachusetts sales and use tax liability.