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Massachusetts sales tax notices

Got a letter from the Massachusetts Department of Revenue (DOR)? Find it below to see what it means, why businesses usually receive it, and what to do next.

Sources checked

Tax authority

Massachusetts Department of Revenue (DOR) (opens in a new tab)

Official notice guide (opens in a new tab)

Disagree with a notice?

Before assessment, dispute a Notice of Intent to Assess with a pre-assessment appeal on Form DR-1 (or online in MassTaxConnect). You can also request a pre-assessment conference or settlement consideration; settlement requires Form B-37. After a Notice of Assessment, request an abatement (Form ABT or MassTaxConnect), which can include a post-assessment hearing. Abatement denials can be appealed to the Appellate Tax Board.

Deadline: Pre-assessment: Form DR-1 received within 30 days of the NIA (postmarked within 25 days if mailed). Abatement: generally the latest of 3 years from filing the return, 2 years from assessment, or 1 year from payment. Appellate Tax Board: 60 days from the Notice of Abatement Determination.

Source: Massachusetts Department of Revenue (DOR) (opens in a new tab)

Failure to file

The authority has no return on record for a period it expects one, often because an account is open but filings stopped.

Failure to file

Notice of Failure to File (NFF)

A desk-audit notice sent when DOR believes you did not file a required return, or when a preliminary review of your filing history raises questions.

Why you got it

  • A required tax return was not filed
  • Inconsistencies or questionable issues in your filing history

What to do

  1. Check the notice against your records; if you already filed, send DOR the requested information showing that
  2. Otherwise, file the missing returns and pay the tax due by the response date on the notice
  3. If late penalties are assessed, consider a penalty waiver request in MassTaxConnect or on Form ABT explaining your reasonable cause; DOR cannot waive interest

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Response window: By the response date on the notice

Source: Audit Process | Mass.gov (opens in a new tab)

Balance due

A bill for tax, penalty, or interest the authority says is unpaid.

Balance due

Notice of Assessment (NOA)

The first bill, sent when DOR determines you owe tax. It can result from an audit (NIA), a late return, an unpaid return or a return error.

Why you got it

  • An NIA was not resolved
  • A late or unpaid return
  • An error on a return

What to do

  1. Check the assessment against your returns; if a return was wrong, file an amended return
  2. If you dispute the tax, file an abatement request (File a dispute in MassTaxConnect, or Form ABT)
  3. Pay the tax you agree with or apply for a payment agreement; interest keeps accruing on unpaid amounts
  4. For late filing or late payment penalties, consider a penalty waiver request in MassTaxConnect or on Form ABT showing reasonable cause

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Response window: 30 days to respond

Source: DOR Notices and Bills | Mass.gov (opens in a new tab)

Balance due

Statement of Account

The second bill, sent when a Notice of Assessment was not paid in full by its due date. It includes a Demand for Payment section and a $30 demand penalty.

Why you got it

  • The Notice of Assessment was not paid in full by the due date

What to do

  1. Pay the unpaid tax or set up a payment agreement quickly; collection can start 10 days after this notice
  2. If you dispute the assessment, file an amended return or an abatement request
  3. If you had reasonable cause for filing or paying late, consider a penalty waiver request in MassTaxConnect or on Form ABT

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Response window: Collection activity can begin if any amount remains unpaid 10 days after the Statement of Account is issued and the assessment is not disputed

Source: DOR Notices and Bills | Mass.gov (opens in a new tab)

Assessment

A proposed or final determination of tax owed, sometimes estimated when returns were never filed.

Assessment

Notice of Intent to Assess (NIA)

An audit notice showing the additional tax DOR believes you owe and why. It is not a bill; it shows what you will owe if you do not dispute it.

Why you got it

  • An audit or return verification found tax was underreported

What to do

  1. Review the proposed tax and DOR's reasons against your records
  2. If you disagree, submit documents in MassTaxConnect using the Letter ID, or file Form DR-1 for a pre-assessment appeal within 30 days
  3. If you agree, paying the tax now limits interest, which DOR cannot waive; penalty relief can be requested once penalties are assessed
  4. Call the DOR Contact Center or send a secure message in MassTaxConnect with questions

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Response window: 30 days from the date of the notice

Source: DOR Notices and Bills | Mass.gov (opens in a new tab)

Assessment

Notice of Change in Tax Return (NOC)

DOR believes there is an error on your return and has adjusted it. The notice lists the reasons, and if tax is owed a Notice of Assessment will follow.

Why you got it

  • A math or reporting error was found on a filed return

What to do

  1. Compare the adjustments with your original return
  2. If you disagree, submit a statement and supporting documents in MassTaxConnect using the Letter ID
  3. If you agree, no response is needed; you may pay online before the Notice of Assessment arrives to limit interest

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Source: DOR Notices and Bills | Mass.gov (opens in a new tab)

Collections

Enforcement on unpaid balances, such as liens, levies, warrants, or referral to a collection agency.

Collections

Final Notice

Sent after earlier bills got no response or payment. Collection activity can follow, including bank levies, wage levies, liens and suspended licenses.

Why you got it

  • Earlier bills (NOA and Statement of Account) were not paid or answered

What to do

  1. Pay the amount owed or contact DOR right away about a payment agreement to avoid levies, liens or license suspension
  2. If you had reasonable cause for filing or paying late, you may still ask for a penalty waiver within the abatement deadlines; interest cannot be waived

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Response window: Immediately, to avoid collection activity

Source: DOR Notices and Bills | Mass.gov (opens in a new tab)

Ask for penalty relief

Penalties on a Massachusetts notice aren't always final. You can ask for them to be waived. Follow the steps below, including anything the state requires you to file or pay before it reviews the request.

Penalty waiver (abatement of penalties)

Form ABT, Application for Abatement (or a Penalty Waiver appeal in MassTaxConnect)
  1. File any missing returns and pay the tax due
  2. In MassTaxConnect, choose More…, then File an Appeal, and select the Penalty Waiver appeal type with a reason, an explanation and supporting documents
  3. Or file paper Form ABT; taxpayers required to file electronically must request abatement electronically
  4. Apply within the later of 3 years from filing the return, 2 years from the assessment or 1 year from payment

What qualifies: Reasonable cause and not willful neglect, for example serious illness, unavoidable destruction of records, or reasonable reliance on erroneous written advice from DOR. Ignorance of the law alone is not reasonable cause. Partial relief is possible.

Interest: DOR does not have the legal power to waive or abate interest due on an unpaid liability. If a tax is abated, the interest on that tax is also abated.

Source: Appealing a state tax bill | Mass.gov (opens in a new tab)

Before you respond

  • Check the date on the notice. Response windows usually run from that date, not the day you open it.
  • Match the account number and filing period to your own records before paying or disputing.
  • If returns are missing, filing the actual returns usually replaces an estimated bill. Confirm how on the notice or with the authority.
  • Ask about penalty relief before paying penalties, and check what must be paid with the request. See how
  • Keep a copy of the notice and everything you send back.

This page is general information, not tax or legal advice. Notice names and procedures change, so always follow the instructions on your notice and the official sources linked above.

Need the rates, nexus thresholds and filing rules? Read the Massachusetts sales tax guide.

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