Category Archives: State and Local Tax
August 2, 2017
In D & H Distributors, Inc. v. Commissioner of Revenue (July 31, 2017), the Massachusetts Supreme Judicial Court (SJC) upheld the imposition of sales tax against a wholesaler that delivered goods directly to consumers in “drop shipment” transactions.
December 6, 2016
Massachusetts families of means often establish trusts with Massachusetts resident fiduciaries for the benefit of unborn and unascertained beneficiaries. Later, some of these families leave Massachusetts and reestablish themselves as domiciliaries and residents of other states or even foreign countries. Their unborn children and unascertained beneficiaries may never become Massachusetts ...
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 17, 2016
Today the Boston Globe reported that PTC, Inc. (“PTC”) voluntarily disclosed that its Chinese subsidiaries allegedly provided about $1.5 million in bribes to foreign officials over a period of five years (from 2006 through 2011) in violation of the United States Foreign Corrupt Practices Act. PTC is a publicly held ...
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 ...
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
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 ...