Massachusetts Tax Penalty Rates

This page provides a graph of tax penalty rates in Massachusetts.

Updated: September 17, 204

Penalty rates in Massachusetts

Type of Civil Penalty	Penalty Amount/Rate	References
Failure to File Timely Return	1% per month, or fraction thereof, of the unpaid tax up to a maximum of 25%	Mass. General Laws c. 62C, § 33(a)
Failure to Pay a Tax When Due	1% per month, or fraction thereof, of the unpaid tax up to a maximum of 25%	Mass. General Laws c. 62C, § 33(b)
Failure to Pay Deficiency Assessment	1% per month, or fraction thereof, of the unpaid tax up to a maximum of 25%, combined with section 33(b) above	Mass. General Laws c. 62C, § 33(c)
Failure to File Return After Notice or Filing of a Fraudulent Return	Up to double the tax amount determined to be due.	Mass. General Laws c. 62C, § 28
Failure to Report Federal Change	10% of the additional tax	Mass. General Laws c. 62C, § 30
Underpayment of Estimated Tax Penalties-Income Tax and Corporate Excise	Interest at an annual rate equivalent to the federal short‑term rate plus four percentage points	Mass. General Laws c. 62C § 32(a) and c. 62B, § 14(a) and (b) or G.L. c. 63B, § 3
Demand Charge	$30 per demand for payment missed	Mass. General Laws c. 62C, § 46 and G.L. c. 60, § 15
Dishonored Check or Failed Electronic Funds Transfer	$30 or the amount of the payment, whichever is less, for payments under $1,500; 2% of the payment for payments $1,500 or greater	Mass. General Laws c. 62C, § 35
Failure to File, Report or Pay Electronically	Up to $100 for each failure to file returns, transfer data, or pay electronically as required by the Department	Mass. General Laws c. 62C, § 33(g)
Depository Filer Failure to Make Deposits	5% of the underpayment	Mass. General Laws c. 62C, § 45A
Failure to File Wage Reports	Up to $25 per employee, contractor, or other recipient of periodic income or, if the result of a conspiracy between employer and recipient not to file the required report, $500 for each recipient.	Mass. General Laws c. 62E, § 9
Failure to Withhold, File Returns or Pay Over Taxes	Fine of $100 - $5,000, or imprisonment for not more than 1 year or both	Mass. General Laws c. 62B, § 7
Failure to File Report of Income Paid to Persons	$1 for each such report not filed, up to $1,000. In addition, a payor of taxable income is subject to a fine of $25 - $500 for a failure to file with DOR without reasonable cause.	Mass. General Laws c. 62C, §§ 34 and 77
Fraudulent Estate Tax Returns	50% of the underpayment	Mass. General Laws c. 65C, § 13
Failure to File a Partnership Return	$5 for every day the partnership fails to file	Mass. General Laws c. 62C, § 34
Promoter Failure to File a Required Report	$5 for every day for which the report is not filed	Mass. General Laws c. 62C, § 34
Negligence or Substantial Underpayment	20% of the underpayment	Mass. General Laws c. 62C, § 35A
Return Preparer Penalty	$1,000 per return or claim  Greater of $1,000 or 10% of understatement	Mass. General Laws c. 62C, § 35C(a) Mass. General Laws c. 62C, § 35C(b)
Inconsistent Filing Position	Equal to the amount of tax attributable to the inconsistency	Mass. General Laws c. 62C, § 35D
Promoters of Abusive Tax Shelters	Up to $5,000 for each client to whom the statement was made	Mass. General Laws c. 62C, § 35E

Type of Civil Penalty	Penalty Amount/Rate	References