Massachusetts Codifies Accelerated Payment Safe Harbor

Erik Wallin
December 17, 2021

On December 13, 2021, Massachusetts Governor Charlie Baker signed (in part) Bill H.4269 “An Act Relative to Immediate Covid-19 Recovery Needs” into law. This new legislation, in effect, codifies and make permanent the safe harbor rule for advanced payments of sales and use tax, and room occupancy tax that was set to expire January 1, 2022.

The safe harbor rule allows taxpayers to remain complaint (avoiding the 5% penalty) as long as the advance payment made on the 25th of the month equals 80% of the total sales tax liability from the prior month.

Although not yet available, the new law makes clear that additional regulations and guidance will be forthcoming to clarify the modified requirements. For more information on the current Advanced Payment Rules click here.

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Erik Wallin

Erik Wallin is a Senior Tax Counsel on the Tax Research Team at Sovos Compliance. Erik has been with Sovos Compliance since 2011, and his main areas of focus are on U.S. Transaction Tax Law which includes special expertise in the taxation of technology and the taxation mechanisms that apply throughout the Colorado home rule jurisdictions. Erik is a member of the Massachusetts Bar, has a B.A. from York College of Pennsylvania, a J.D. from New England School of Law, and an LL.M. in Taxation from Boston University.
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