Legal advocates and taxpayers urge overhaul of Massachusetts’ offer-in-compromise process
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Summary
Witnesses including Greater Boston Legal Services and enrolled tax practitioners told the Joint Committee on Revenue that the state's offer-in-compromise procedures are underused, place hardships on low-income taxpayers, and should more closely align with federal practice to avoid driving people deeper into poverty.
Multiple witnesses urged the Joint Committee on Revenue to change how Massachusetts handles offers in compromise and settlements of tax liability, saying the current process is underutilized and can deepen financial hardship.
Angela Devares, an attorney with Greater Boston Legal Services’ Low Income Taxpayer Clinic, described clients who faced aggressive collection practices — license suspensions, wage and bank garnishments — that she said pushed them further into poverty. She said the state’s offer-in-compromise program is rarely used compared with the IRS process and that expanding equitable use of offers could both rehabilitate taxpayers and recover otherwise uncollectible revenue.
John Warren, an enrolled agent in West Medford, provided documents to committee staff and urged legislators to consider aligning state practice with federal offer rules. He described organizing pro bono tax clinics for low-income taxpayers and said Massachusetts uniquely funds low-income state tax clinics. A Spanish-language witness recounted a personal business audit and an unsuccessful offer attempt, asking legislators to make the state process fairer. Witnesses asked the committee to report favorably on House Bill 3062 and related Senate language. The committee did not record a vote during the hearing.