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H 3062

An Act providing for settlements of tax liability

194th Legislature (2025-2026) Introduced by Rob Consalvo and 3 co-sponsors

Bill H 3062 allows Massachusetts taxpayers to negotiate tax settlements, ensuring fairness and compliance while offering flexible payment options for outstanding debts.

Hearing rescheduled to 11/18/2025 from 10:00 AM-11:00 AM in B-1 and Virtual Hearing updated to New End Time
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Bill Summary · H 3062

Summary of Bill H 3062: An Act Providing for Settlements of Tax Liability

Purpose and Intent

Bill H 3062 aims to establish a structured framework for settling tax liabilities in the Commonwealth of Massachusetts. The legislation seeks to provide taxpayers with a clear process for negotiating settlements on their tax debts, thereby promoting effective tax administration and ensuring fairness in the tax system.

Key Provisions

The bill proposes several significant changes to Chapter 62C of the General Laws, particularly focusing on the settlement of tax liabilities:

  1. Settlement Agreements:

    • The commissioner of revenue is authorized to enter into written agreements with taxpayers regarding their tax liabilities for any tax period ending before the agreement date.
    • These agreements are final and conclusive, barring reopening unless there is evidence of fraud or mutual mistake.

  2. Compliance Requirement:

    • Taxpayers must be compliant with all filing requirements for all tax years before making a settlement offer.
    • Compliance is defined as having filed all income tax returns or having a final assessment in place.

  3. Conditions for Compromise:

    • Compromises can be made when there is doubt about the liability or collectability of the tax owed, or when effective tax administration can be promoted.
    • The commissioner will develop guidelines to assess the adequacy of settlement offers.

  4. Payment Options:

    • Taxpayers can propose either a lump-sum offer (to be paid in 5 or fewer installments) or a periodic payment offer (to be paid in 36 or fewer installments).
    • A 10% payment of the offer amount is required upon submission of a lump-sum offer.

  5. Review and Appeal Process:

    • Offers that propose to settle for $50,000 or more less than the full amount owed must be reviewed by the Attorney General.
    • Procedures for counteroffers, rejections, and appeals are established to ensure transparency and fairness in the settlement process.

Who Would Be Affected

  • Taxpayers: Individuals and businesses with outstanding tax liabilities will benefit from a clearer and more accessible process for negotiating settlements.
  • Department of Revenue: The bill will require the department to implement new guidelines and procedures for handling settlement offers.
  • Attorney General's Office: The office will be involved in reviewing significant settlement proposals.

Procedural and Timeline Aspects

  • Introduced: February 27, 2025
  • Hearing Scheduled: November 18, 2025, from 10:00 AM to 1:00 PM in A-1
  • Legislative Actions:
    • The bill was referred to the committee on Revenue and has undergone several hearings, with one previously canceled.

Conclusion

Bill H 3062 represents a significant step towards reforming how tax liabilities are settled in Massachusetts. By establishing clear guidelines and processes, the bill aims to enhance taxpayer compliance and promote fairness in tax administration. The upcoming hearing will provide an opportunity for stakeholders to discuss the bill's implications further.

Compiled from official sources — confirm details with the bill’s official record.

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