HOUSE DOCKET, NO. 3196        FILED ON: 2/18/2021

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 3027

The Commonwealth of Massachusetts

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PRESENTED BY:

Tram T. Nguyen

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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:

The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act relative to emergency tax relief to unemployed workers.

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PETITION OF:

HOUSE DOCKET, NO. 3196        FILED ON: 2/18/2021

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 3027

The Commonwealth of Massachusetts

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In the One Hundred and Ninety-Second General Court
(2021-2022)

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An Act relative to emergency tax relief to unemployed workers.

Whereas, The deferred operation of this act would tend to defeat its purpose, which is to provide financial relief to taxpayers experiencing unemployment during the Covid-19 pandemic, therefore it is hereby declared to be an emergency law, necessary for the immediate preservation of the public convenience.
 

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

SECTION 1. Notwithstanding chapter 62 of the General Laws or any other general or special law to the contrary, the commissioner of revenue shall permit a taxpayer who received unemployment compensation during tax years 2020 or 2021 to pay any income taxes due on such unemployment compensation on or before December 31, 2022, without penalties or interest.  For purposes of this section, a taxpayer may defer payment of taxes on an amount not to exceed 5 percent of unemployment compensation received during the tax year. 

SECTION 2. Notwithstanding chapter 62 of the General Laws or any other general or special law to the contrary, the commissioner of revenue shall establish a hardship tax forgiveness program for taxpayers who received unemployment compensation during tax years 2020 or 2021 and whose household income is at or below 200 percent of the federal poverty level for either tax year 2020 or 2021, under which any income taxes otherwise due on such unemployment compensation payments shall be waived for that tax year. Taxpayers who elected to have income taxes withheld from their unemployment compensation benefits will have those taxes refunded to them.

SECTION 3. For purposes of this Act, unemployment compensation shall include benefits received under chapter 151A of the General Laws, under the Federal-State Extended Unemployment Compensation Act of 1970, 26 USC 3304 note, under Short Time Compensation, 26 USC 3306(v), under the Trade Readjustment Allowance, 19 USC sections 2291-2293, under the Presidential Memorandum issued August 8, 2020 Authorizing the Other Needs Assistance Program for Major Disaster Declarations Related to Coronavirus Disease 2019, under the Coronavirus Aid, Relief and Economic Security (CARES) Act of 2020, and under the Continued Assistance to Unemployed Workers Act of 2020, or any amendments extending unemployment benefits during the Covid-19 pandemic.

SECTION 4.  The department of unemployment assistance and the department of revenue shall provide individuals with notice of sections 1 through 3 of this act in plain language and the notice shall meet the requirements of clause iii of subsection (d) of section 62A of chapter 151A of the General Laws.

SECTION 5. The commissioner of revenue shall promulgate regulations or guidance to implement sections 1 to 4 of this act.