The Commonwealth of Massachusetts has passed a new bill to recover delinquent tax contributions through State and Federal intercepts.

The tax intercept process

Federal and state laws require state agencies to recover delinquent tax contributions by intercepting the debtors’ federal income tax refunds as well as intercept of state income tax refunds, payments from state contracts, lottery winnings and any other payments due to an employer.  When an employer’s balance becomes final and eligible for intercept, a Notice of Intent to Intercept will be mailed to delinquent employers  at least 60 days prior to referral for intercept.   We recommend that you  use our online self-service system to update your address information and mailing preference. Log on to www.mass.gov/uima

How can I avoid a Federal and/or State Tax Intercept?

You can avoid the risk of an intercept by filing accurately and paying the total balance due on time each quarter. If you cannot pay your balance in full you may enter into a payment agreement. However, having an active payment agreement doesn’t exclude you from intercept.

Source: State and Federal Tax Intercept on Delinquent Employer Accounts | Mass.gov