An Act providing for settlements of tax liability

This bill amends Massachusetts tax law to create a formal process for taxpayers to negotiate settlements with the state regarding unpaid taxes. It allows the tax commissioner to agree on reduced payments when there is a dispute over the tax amount, uncertainty about whether the tax can be collected, or special circumstances that make full collection unfair. To qualify for these deals, taxpayers must first file all required tax returns, and the state will use specific guidelines to ensure the settlement leaves individuals with enough money for basic living expenses. The law also sets rules for how payments must be made, requiring an upfront deposit for lump-sum offers and allowing a three-year period for full compliance after the agreement is signed.