Sales Tax Penalties and Interest

    Posted by MAIA on Aug 9, 2019 3:49:52 PM

    QUESTION

    This question was answered based upon current rules, regulations & statutes in effect on March 28, 2019

    I was hoping you could help on this

    One of our insured’s  had purchased a 1956 Triumph in pieces back in 1982 which he has restored/re-built ... the vehicle was untitled to begin with (has No Vin#) but has the original bill of sale from 1982 ... when he went to the registry w/the RMV-1 form they told him that he owes close to $12,000 in tax penalties for not titling the vehicle back in 1982.. he was wondering if that is correct ..

    ANSWER

    Kathy Cormier:  See attached.  When you purchase a vehicle you have 10 days to pay tax from the date of purchase.  If not paid, you have until the 20th of the following month to pay tax before penalties and interest on a daily basis.  Unfortunately, the RMV is correct.

    He can try to apply for an abatement with the DOR, the new abatement form is the ABT form...the notice attached has the CA-6 form which is no longer used.

    I hope this helps.

    Agent:  Thank you Kathy

    This document is not a legal opinion and should not be relied upon as such. The intent of this document is to provide a general background regarding the topic or topics discussed, not to provide legal advice. Producers and agencies should consult an attorney regarding specific situations and specific questions with respect to the topic or topics covered in this document. Neither the Massachusetts Association of Insurance Agents, Number One Insurance Agency nor any of its employees shall be responsible for any errors or omissions regarding any statements made in this document, nor any errors or omissions regarding any statutes, regulations, court rules, and/or any other government documents cited in this document.

    Topics: Claims, 2019

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