Jessica Moore, director of government affairs for the Massachusetts Restaurant Association, asked the Joint Committee on Revenue to support S.1992 (repeal of advanced sales‑tax payment requirements) and S.1993 (authority for DOR to waive penalties and interest for businesses who unknowingly did not begin the advanced payment process correctly).

Moore said the advanced payment rule — implemented during the pandemic — requires certain businesses to remit sales and meals tax in advance of the monthly return and that DOR audits of 2021 and later periods are producing retroactive penalty assessments. "Massachusetts small businesses are being penalized an average of $30,000 in retroactive tax penalties," Moore said, and she described limited notice in 2021 when the rule change occurred and the particular vulnerability of small operators without full‑time accountants.

Committee members questioned whether improved DOR communication would address the problem; Moore said there are two distinct bills: one repeals the advanced payment requirement and the other empowers DOR to waive penalties or interest in affected past periods. She urged the committee to consider the relief bill for businesses that were not properly notified and to work with the department on better outreach going forward.

No committee vote was taken; restaurant stakeholders were invited to provide case counts and documentation to staff for committee review.