HYANNIS – The Massachusetts Department of Revenue is working to provide relief to Massachusetts residents for their to tax returns and payments.
This comes after the Internal Revenue Service moved the date to file federal taxes from April 15 to July 15 in response to the coronavirus .
Sandwich State Representative and Certified Public Accountant Randy Hunt explained that this change has created confusion across the nation. Multiple states, including Massachusetts, end their fiscal year in June, while the federal government does so in September.
“So when you extend a date beyond the end of the fiscal year,” Hunt said, “combined with the fact that our Constitution requires that we have a balanced budget, the states are having a bit of difficulty trying to figure out what to do.”
Pushing the tax due date for the state into July could create a hole totaling around $3.5 billion, according to Hunt.
Hunt said that the state should be putting out information detailing its position at some point within the coming days. Until then, he said, Massachusetts residents should “hold tight.”
He stressed the importance of making payments that equal 80% of what is owed by the state’s due date, even if it is not the same as the federal due date.
“Otherwise, there are underpayment penalties and interest, and your extension, actually, would be nullified, if you file an extension,” he continued.
Hunt’s CPA office is still processing tax returns, although they have not been conducting face-to-face meetings. Rather, he and his associates are utilizing video conferencing applications.
For more information from the state, visit the Massachusetts Department of Revenue’s website by clicking here.
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