302.1. Requirements.
302.2. Application.

302.1. Requirements

In general, any domestic business or foreign corporation is entitled to tax treatment as a security corporation (G.L. c. 63, § 38B) provided that it satisfies two requirements. First, the corporation must be engaged exclusively in buying, selling, dealing in, or holding securities on its own behalf and not as a broker. Second, the corporation must be classified as a security corporation by the Massachusetts Department of Revenue.

302.2. Application

To apply for security corporation classification, the corporation generally must adhere to the guidelines set forth in DOR Directive (DD) 86-33. However, if an application is postmarked by the United States mail before the end of the taxable year for which classification is sought but arrives at DOR after the due date, the application will be considered timely filed. See G.L. c. 62C, § 33A, as amended.

Security corporation classification remains in effect until revoked by DOR or withdrawn by the corporation. If a security corporation's activities change during its taxable year, it must notify the Commissioner before the end of its taxable year.

For more information contact the Massachusetts Department of Revenue, Filing Enforcement Bureau, 200 Arlington Street, Room 4300, Chelsea, MA 02150, (617) 887-6990.

G.L. c. 62C, § 33A
G.L. c. 63, § 38B
DD 86-33
DD 86-34
DD 86-35
DD 86-36
DD 86-37
Form 355 SC, Security Corporation Excise Return