Category Archives: Massachusetts Department of Revenue
Massachusetts Governor Charlie Baker May Propose Unconstitutional Sales Tax Collection Responsibility on Remote SellersJanuary 27, 2017
BOSTON – January 27, 2017. In an attempt to balance his $40.5 billion budget, Governor Charlie Baker may propose that remote sellers be required to collect Massachusetts sales taxes on sales of tangible personal property made over the internet to Massachusetts residents. A so-called “remote seller” is a seller that ...
March 14, 2016
I. IntroductionOver the past 25 years new types of expanded non-physical nexus have come to be recognized. These types of expanded nexus are:
- Economic Nexus: Income Taxes
- Click-Through or Agency Nexus: Sales Taxes
- Affiliate and Attributional Nexus: Sales Taxes and Income Taxes
February 1, 2016
State Voluntary Disclosure Programs: An Overview
By Attorney Morris N. Robinson, CPA, LLMWhat is Voluntary Disclosure? Most state departments of revenue allow certain categories of noncompliant taxpayers to come forward voluntarily and pay taxes accrued during a limited lookback period. Taxpayers ...
December 24, 2015
Recent decisions by the Massachusetts Appellate Tax Board (ATB) illustrate that a taxpayer must fulfill three prerequisites in order to obtain ATB jurisdiction in tax appeals against the Commissioner of Revenue:
File all required tax returns.
File a Form CA-6: Application for Abatement, with the Department of Revenue. The CA-6 filing ...
Bank of America as Trustee v. Commissioner of Revenue: Massachusetts Supreme Judicial Court Will Hear Case in 2016November 20, 2015
The Massachusetts Supreme Judicial Court (SJC) will hear the appeal of Bank of America against the Massachusetts Commissioner of Revenue in 2016. The SJC accepted Bank of America’s application for Direct Appellate Review on November 12, 2015. The current docket number is SJC-11995.
October 28, 2015
Taxpayers who failed to file their Massachusetts income tax returns, or who underreported their income, might be given a two-month window in April and May 2016 to enter into a tax amnesty program. The program is still in the planning stages. It has not yet received final approval, and details ...
The Bank of America Case: May Massachusetts Tax the Trust Fund Income of Non-Resident Families with Unborn and/or Unascertained Members?October 22, 2015
Background Before addressing the Bank of America case, it is necessary to understand the Massachusetts taxation of trustees and their beneficiaries, which is described in 830 CMR 62.10.1: Income Tax on Estates and Trusts (the “Regulation”). Massachusetts Jurisdiction to Tax Trusts When dealing with jurisdiction to tax, the Regulation distinguishes between testamentary trusts and inter vivos trusts, as follows:
MassTaxConnect: Massachusetts Business Taxpayers and Tax Professionals Await Rollout of New Secure Website on November 30, 2015September 21, 2015
Internet Tax Freedom Act is Scheduled to Expire: Massachusetts Department of Revenue Publishes TIR 15-8September 9, 2015
The federal Internet Tax Freedom Act (“ITFA”) is scheduled to expire on October 1, 2015, unless Congress extends it. The Massachusetts Department of Revenue (“DOR”) issued TIR 15-8 on September 9, 2015, advising internet service providers on how to comply with Massachusetts tax laws after ITFA expires. ITFA prevents any federal, ...
September 9, 2015
Every year hundreds of former Massachusetts residents are selected for a Department of Revenue domicile audit. It is very easy to be selected for audit. Former Massachusetts residents with high incomes and net worths are particularly vulnerable. How are these taxpayers identified for audit? Perhaps the most important Department of Revenue ...