Tax Attorney in Massachusetts

Yes. Massachusetts imposes a 5% flat personal income tax on most types of income under M.G.L. Chapter 62, with a 12% rate that applies to short-term capital gains and gains on collectibles. As of tax year 2023, an additional 4% surtax applies to the portion of personal income above $1 million under the Fair Share Amendment (M.G.L. Chapter 62, §4(d)). Massachusetts residents file Form 1; non-residents and part-year residents file Form 1-NR/PY. The Department of Revenue collects and administers all state-level income tax.

The Fair Share Amendment, approved by Massachusetts voters in November 2022 and effective for tax years beginning on or after January 1, 2023, adds a 4% surtax to the portion of a taxpayer's Massachusetts taxable income that exceeds $1 million (indexed for inflation). It applies to individual filers and to certain pass-through entity income. The surtax is reported on Schedule 4% Surtax filed with Form 1. DOR has begun examining surtax filings closely — particularly capital-gain timing, deferred-comp recognition, and pass-through entity tax (PTE) elections that interact with the threshold. Massachusetts is one of the few states to have layered a millionaire surtax onto a flat tax base.

The U.S. Tax Court calendars trial sessions in Boston at the John W. McCormack U.S. Post Office and Courthouse on Post Office Square. Boston is the only place of trial in Massachusetts. Petitioners designate the preferred place of trial on the petition under Tax Court Rule 140. Western Massachusetts taxpayers may designate Hartford or Albany as alternatives if travel logistics favor those locations, though most cases for Bay State petitioners are scheduled in Boston.

For assessment, DOR generally has three years from the date the return was filed (or due, if later) under M.G.L. Chapter 62C, §26 to issue a Notice of Assessment. Six years applies to omissions of more than 25% of reported gross income, and the period is unlimited for unfiled returns and for fraud. For collection of an assessed tax, M.G.L. Chapter 62C, §65 gives DOR ten years from assessment to collect — the same length as the federal CSED under IRC §6502, but the two clocks run independently.

Yes. The IRS examines federal income tax, federal employment tax, and federal excise tax. DOR examines Massachusetts personal income, corporate excise, sales-and-use, withholding, and other Commonwealth taxes. The two agencies share information under the IRS-State exchange program, and an IRS adjustment to federal taxable income triggers a near-automatic DOR adjustment to Massachusetts taxable income (which generally starts from federal AGI). A federal Schedule C audit in Brookline often produces a DOR Notice of Change to State Tax 60 to 120 days after the federal closing letter.

Yes. Massachusetts operates a state Offer in Settlement (Offer in Compromise) program under M.G.L. Chapter 62C, §37A. Taxpayers file Form M-656 with supporting financial disclosure. DOR considers doubt as to collectibility and economic hardship grounds similar to the federal IRC §7122 framework. The state OIS is filed at the DOR Collections Bureau and reviewed independently of any pending federal OIC. Filing the state OIS does not toll the federal CSED — the two programs run on parallel tracks. A coordinated submission to both agencies is often the cleanest path when both balances exist.

Your CSED is calculated from the date of assessment, which appears on your IRS Account Transcript as Transaction Code 150 (return filed) or Transaction Code 290 (additional assessment). Add ten years, then add the days for any tolling events: pending OICs, CDP hearings, bankruptcy stays, and continuous absence from the United States for six months or more. The IRS publishes the CSED date internally on its CC ACTRA transcript; we pull this for clients as part of every engagement. A debt assessed in 2016 may be approaching expiration in 2026, and aggressive enforcement near the CSED is common.

Probably yes for the federal trust-fund portion. IRC §6672 assesses a Trust Fund Recovery Penalty against any "responsible person" who "willfully" failed to pay over withheld taxes — the FICA and federal income-tax withholding portion of Form 941, not the employer's share. The IRS conducts a Form 4180 interview to identify responsible persons. Anyone with check-signing authority, payroll-decision authority, or knowledge of the unpaid taxes can be assessed. On the state side, DOR can pursue personal liability for unremitted Massachusetts withholding under M.G.L. Chapter 62B and for unremitted sales tax under M.G.L. Chapter 62C, §31A.

Yes. IRC §7345 authorizes the IRS to certify "seriously delinquent" tax debt — currently $62,000 for 2026, indexed for inflation — to the State Department, which may then deny passport renewal or revoke an active passport. The certification reverses when the debt is paid, an IA is in place, an accepted OIC is in force, an active CDP hearing is pending, or Innocent Spouse Relief is in process. For Boston-based academics on international sabbatical, pharma executives traveling for clinical trials, and dual-citizen residents in Brookline and Newton, decertification is often urgent and can be processed in 30 days or less.

Federal tax-resolution fees vary by matter complexity. A straightforward Installment Agreement typically falls between $1,500 and $3,500. A full Offer in Compromise with Form 433 financial analysis runs $4,000 to $7,500. Audit defense depends on the audit type and the number of issues. A U.S. Tax Court petition with case workup and trial preparation generally starts at $6,000 and rises with complexity. VTL provides a written fee quote after the free consultation. California Rules of Professional Conduct Rule 7.1 prohibits comparisons claiming we are cheaper or faster than competitors without verifiable substantiation, so we do not market on price.

Yes. Communications between you and a licensed attorney for the purpose of seeking legal advice are protected by federal common-law attorney-client privilege, subject to the usual exceptions (crime-fraud, waiver, etc.). The narrower federally-authorized tax practitioner privilege under IRC §7525 applies to non-attorney CPAs and EAs but does not extend to criminal-tax matters. An attorney handling your tax case retains the broader privilege that survives criminal investigation. Massachusetts state-law privilege under G.L. Chapter 233, §20 also recognizes the attorney-client privilege.

A Tax Court trial is a bench trial — no jury — before a Judge or Special Trial Judge of the U.S. Tax Court. The session opens with calendar call where the Court hears scheduling issues. Most cases on the calendar settle before trial; the IRS Office of Chief Counsel attorney for the case meets with petitioner's counsel during the days before trial. If trial proceeds, the petitioner bears the burden of proof on most issues, presents evidence and witness testimony, and the Court issues a written opinion typically within several months of trial. Small-tax-case procedure under IRC §7463 applies to deficiencies of $50,000 or less per year and uses a simplified evidentiary standard.

Yes, generally. IRC §6331(k)(1) suspends levy action while an offer is pending and for 30 days after a rejection, and during any timely-filed Appeals review of a rejection. The IRS will not levy on you while a processable OIC is being evaluated. However, the IRS may still file a Notice of Federal Tax Lien during the OIC pendency to protect its position. CSED is also tolled during the pendency. A poorly-prepared OIC that gets returned (not rejected) does not provide the same protection — processability matters.

The Appellate Tax Board permits self-representation, and represented taxpayers may appear through an attorney admitted in Massachusetts or another authorized representative under ATB Rule 1.05. For state-court judicial review proceeding at the Massachusetts Appeals Court or the Supreme Judicial Court, an attorney admitted in Massachusetts is required. VTL handles the federal side of overlapping matters and coordinates with Massachusetts counsel where state-court litigation is necessary. Many DOR disputes resolve at the Office of Appeals or ATB stage without reaching state appellate review.

Long-term capital gains are taxed at the 5% personal income rate. Short-term capital gains and gains on collectibles are taxed at 12%. The Fair Share 4% surtax applies on top of either rate to the extent a taxpayer's total Massachusetts taxable income (including realized gains) exceeds the $1 million threshold. This creates an effective combined rate of 9% on long-term gains and 16% on short-term gains for the over-$1M slice. Timing of recognition — whether to sell appreciated stock or real estate in a single year above $1M or stagger across years to stay under — is now a recurring planning question for high-net-worth Bay State filers.