Monthly Archives: July 2013

Massachusetts Computer-System Design/Software Services Now Taxed at 6.25% Effective July 31, 2013

TIR 13-10 Issued; Additional Regulations and Letter Rulings Urgently Needed

On Wednesday, July 24, 2013, the Massachusetts Legislature overrode Governor Patrick’s veto and enacted a 6.25 percent sales tax on computer-system design/software services. The new tax is part of the new $800 million transportation bill. The new


E-Filing of Business Certification Now Mandatory in Massachusetts

On October 4, 2012, the Massachusetts Department of Revenue published Department Directive 12-5. The purposes of that directive are (1) to require electronic filing of the Annual Certification of Entity Tax Status for entities in existence on January 1, 2013, and (2) to implement federal classification conformity in formulating the ...

One Size Does Not Fit All: Unintended Consequences of the Offshore Voluntary Disclosure Program

On January 9, 2012, the Internal Revenue Service (IRS) reopened the Offshore Voluntary Disclosure Program (“2012 OVDP”) “on the heels of strong interest in the 2011 and 2009 programs.”  Although the IRS maintains that it may “end the 2012 program at any time in the future,” there is no indication that it will abandon its well-established pattern of announcing new iterations of the OVDP with slight changes to form and slightly more significant changes to substance. The steadily increasing rate of the miscellaneous penalty—currently 27.5 percent of the highest aggregate value of foreign accounts and/or assets that are connected in any way to the taxpayer’s noncompliance, a significant increase from the 20-percent miscellaneous penalty in the 2009 Offshore Voluntary Disclosure Program (“2009 OVDP”)—suggests that the IRS is seeking to deter noncompliant taxpayers from taking a “wait and see” approach.