Procedures
301.1. Application.
301.2. Additional Responsibilities.
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301. Non-profit Corporations--Exemption from the Corporate Excise
Corporations that are exempt from federal taxation under Section 501 of the Internal Revenue Code (IRC) qualify for exemption from the Massachusetts corporate excise. G.L. c. 63, ss. 30, 1 and 2. Corporations that are exempt from paying the corporate excise are not required to file corporate excise returns.
301.1. Application
To apply for the exemption from corporate excise, submit the following information to the Bureau of Desk Audit, Non-Profit Corporations Unit, 200 Arlington St., Room 4300, Chelsea, MA 02150:
A completed Application for Registration, Form TA-1 (if not previously registered).
A copy of the IRS Determination Letter of Exemption granting the corporation Section 501 (c) status.
A copy of the Articles of Organization filed with the Secretary of State's Office.
A copy of the IRS documentation of Employer Federal Identification Number if it is not stated on the IRS Section 501 (c) Determination Letter.
Any non-profit corporation that is not federally exempt and has not filed Massachusetts corporate excise returns and paid the tax due will be referred to DOR's New England Audit Bureau for further investigation.
301.2. Additional Responsibilities
Once a corporation qualifies for the Massachusetts exemption, it must report to DOR the following changes as recorded with the Secretary of State.
Name and Address Changes
If a non-profit organization changes its name, it must send DOR a copy of the Articles of Amendment filed with the Secretary of State. It must also send a copy of the federal determination letter from the IRS granting approval of the name change. If a non-profit organization changes its address, it must notify DOR in writing.
Mergers
If a non-profit corporation is merged with another, the surviving corporation must send DOR a copy of the Articles of Merger filed with the Secretary of State.
Consolidations
If a consolidation occurs, the corporation must file with DOR a copy of the Articles of Consolidation filed with the Secretary of State.
Dissolutions
If a non-profit corporation is voluntarily dissolved, it must send DOR a copy of the petition for dissolution and the final judgment from the court that allowed the dissolution. In the case of an involuntary dissolution, the Secretary of State will inform DOR directly.
Please note that corporations in Massachusetts must follow formal dissolution procedures. For general information on that process, contact the Secretary of State, Corporations Division, at the address or phone number provided below. For information on a corporation's responsibilities with DOR regarding dissolutions, see 830 CMR 62C.32.1 and TIR 92-4.
Withdrawals
If a non-profit corporation wishes to withdraw from Massachusetts, it must obtain from DOR and send to the Secretary of State a Certificate of Good Standing which certifies that all the corporation's known tax liabilities have been satisfied. See AP 613.1 for information on obtaining a certificate.
Revivals
Any domestic or foreign corporation that has voluntarily or involuntarily dissolved may elect to be reinstated by applying to the Secretary of State's office. If accepted, the corporation must re-apply for the exemption by sending documentation as outlined above in AP 301.1.
REMEMBER:
To document the exemption, a non-profit corporation must file with DOR a copy of the IRS letter granting the exemption federally.
Non-profit corporations wishing to dissolve must adhere to the formal dissolution process prescribed by the Secretary of State.
For more information about the exemption for non-profit corporations, write or call:
Massachusetts Department of Revenue
Bureau of Desk Audit
Non-Profit Corporations Unit
200 Arlington Street, Room 4300
Chelsea, MA 02150
(617) 887-6970.
For general information on corporations in Massachusetts, call or write the
Massachusetts Secretary of State
Corporations Division
One Ashburton Place
Room 1712
Boston, MA 02108
(617) 727-9440
REFERENCES:
G.L. c. 63, ss. 30, 1 and 2,
TIR 94-9
AP 613.1, Certificates of Good Standing