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Read. Follow. Verify.Massachusetts prohibits state agencies from hiring contingency fee tax auditors and tax experts
Last action · March 16, 2026: Accompanied a study order, see H5238Sponsor: Hannah Kane
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What This Bill Would Do
Massachusetts prohibits the Department of Revenue, the State Treasurer, and other state agencies from contracting with tax auditors or tax experts whose compensation depends on the amount of taxes, interest, or penalties assessed or collected. The ban takes effect on July 1, 2026, and applies to new contracts, renewals, and discretionary audit assignments under older contracts.
Changes how the state procures tax auditing and expert services by eliminating performance-based or contingency pay structures across all state agencies, taking effect July 1, 2026.
Who It Would Affect
Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.
Department of Revenue
Must alter its contracting practices to eliminate contingency fee arrangements for auditors and tax experts by July 1, 2026.
State Treasurer
Prohibited from employing or contracting with tax personnel on a contingent fee basis.
Taxpayers
Subject to tax audits and liability determinations conducted exclusively by non-contingency-compensated auditors and tax experts.
Key Facts
You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.
Frequently Asked Questions
What compensation method is being banned for state tax auditors?
When does this prohibition take effect?
How does the law handle existing contingency fee contracts entered into before July 1, 2026?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
Currently in committee. The next step in the legislative lifecycle is Floor Vote.
Procedural history
6 actions- Mar 16, 2026HouseAccompanied a study order, see H5238
- Dec 18, 2025HouseReporting date extended to Friday, February 20, 2026
- Oct 7, 2025JointHearing rescheduled to 10/07/2025 from 01:00 PM-02:00 PM in A-2 and Virtual<br> <span style="color: blue; font-style: italic;">Hearing updated to New End Time</span>
- Sep 26, 2025JointHearing scheduled for 10/07/2025 from 01:00 PM-05:00 PM in A-2
- Feb 27, 2025SenateSenate concurred
- Feb 27, 2025HouseCommitteeReferred to the committee on Revenue
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Elimination of Performance-Based Tax Auditing
The bill transitions state tax auditing and expert consultation entirely away from contingency fee arrangements to safeguard perceived auditor independence.
Connected Entities
Sources
malegislature.gov
Analysis Score
0–100- Significance65How much this matters to a regular citizen
- Controversy40Intensity of disagreement among stakeholders
- Entertainment10Compellingness for a non-policy-wonk reader
- Buzz25Current news / social attention level
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