830 CMR: 62C.00: STATE TAX ADMINISTRATION
830 CMR 62C.00 is hereby repealed and replaced with the following:
830 CMR 62C.19.1: Extensions of Time for Filing Returns
(1) Statement of Purpose, Outline of Topics.
(a) Statement of Purpose. This regulation, 830 CMR 62C.19.1, explains that for good cause the Commissioner may grant a reasonable extension of time to file any return required by M.G.L. c. 62C. Corporations filing returns under sections 11 or 12 of Chapter 62C may request automatic extensions or non-automatic extensions for cause.
(b) Outline of Topics. This regulation, 830 CMR 62C.19.1, is organized as follows.
(1) Statement of Purpose, Outline of Topics
(2) Requests for Extensions
(3) Corporate Tax Returns
(4) Types of Corporate Return Extensions
(5) Income Tax Returns
(6) Estate Tax Returns
(7) Other Extensions
(8) Termination of Extensions
(9) Federal Extensions
(10) Void Extensions
(2) Requests for Extensions.
(a) A request for an extension of time to file a tax return shall: (1) be in writing, (2) be filed on or before the due date of the tax return or prior to the termination of any previous extension period, (3) show the full amount properly estimated as tax, (4) be accompanied by a stamped, self-addressed envelope if not for an automatic extension, (5) be properly signed by the taxpayer or his authorized agent.
(b) An authorized agent shall include but is not limited to: (1) an attorney, (2) a certified public accountant, (3) a person authorized to practice before the Internal Revenue Service, (4) a person holding a power of attorney to file such extension, (5) a person standing in a close personal or business relationship with the taxpayer who is unable to sign the extension due to illness, absence or other good cause. In the last case the request must state the reasons for a signature other than that of the taxpayer and describe the relationship existing between the taxpayer and the signer.
An extension request serves as a tentative return for purposes of M.G.L. c. 62C, §19.
The Commissioner will notify the taxpayer or his representative whether or not the extension is approved; no notice of approval will be sent in the case of an automatic extension. A copy of the approved application for extension or the duplicate copy of the automatic extension application must be attached to the face of the return.
(3) Corporate Excise Returns.
(a) General. A corporation required to file a return under sections 11 or 12 of Chapter 62C may obtain an automatic six month extension by filing with the Commissioner Form 355-7004 or Form 355-7004 MISC on or before the due date of the corporate excise return. In certain circumstances, the corporation may obtain an additional extension.
(b) Combined returns. Before any election to file a combined return under M.G.L. c. 63, §32B, has been made, all members of a Massachusetts affiliated group must separately request any extensions of time for filing their returns. After an election to file a Massachusetts combined return has been made, the principal reporting corporation must request an extension of time to file on behalf of all members of the affiliated group and must include the name, address and federal identification number of each member of the group. After an election has been made, no extensions, including extensions for the filing of a return stating the property measure of a member's excise, will be granted to individual members of a combined group. See 830 CMR 63.32B.1.
(4) Types of Corporate Return Extensions.
(a) Automatic extension (Type A). A corporation may obtain an automatic six month extension by filing Form 355-7004 or Form 355-7004 MISC (and checking Box A on the applicable form) on or before the due date of the corporate excise return. A corporation required to file a return under section 11 of M.G.L. c. 62C and requesting extensions to file Forms 355A, 355B, SBC(355), 355C-A, 355C-B, 355S-A, 355S-B or 355SC must file extension Form 355-7004. A corporation required to file a return under section 12 of M.G.L. c. 62C and requesting extensions to file other returns (i.e. insurance, banks, public utilities, and urban redevelopment corporations) must file extension Form 355-7004 MISC. The extension is automatically granted upon the proper filing of this form and the proper payment of estimated taxes due.
(b) Non-automatic extension (Type B). A corporation may request an extension for longer than six months by filing in duplicate Form 355-7004 or Form 355-7004 MISC (and checking Box B on the applicable form) on or before the due date of the return or the termination of the previous extension period. The application must demonstrate good cause for requesting such extension. If the extension is granted, a copy of the approved extension will be returned to the corporation or its representative. If the non-automatic extension is not granted, the Commissioner will approve the corporation's application as an automatic six month extension (Type A), provided that the application is filed on or before the due date of the return and is accompanied by a proper payment of estimated tax. Ordinarily, extensions for cause will not be granted to a corporation which estimates that it has the minimum tax liability, unless it is a corporate subsidiary filing a combined return with an affiliate which estimates that it owes more than the minimum tax.
(5) Income Tax Returns.
(a) Automatic extension. A taxpayer filing an individual income tax return (Form 1, 1-NR, or ABC); a fiduciary income tax return (Form 2); a partnership income tax return (Form 3); a corporate trust income tax return (Form 3F); or any other return of income subject to taxation under Chapter 62 of the General Laws may obtain an automatic six month extension of time to file such return, provided that proper estimated tax payments have been made, as required by 830 CMR 62C.19.1(10). An income tax return (with a copy of the extension) may be filed at any time within the six month extension period. For example, for an individual, a personal income tax return may be filed any time on or before October 15.
(b) Payment due. All applications for extensions must be accompanied by payment of any balance of tax estimated to be due. If payment is required with the extension application, an automatic six month extension request must be filed on the application for automatic extension, Form M-4868. The extension is automatically granted, provided that the application is filed on or before the due date of the return and is accompanied by the proper payment of estimated tax.
(c) No payment due. If an income tax return is required to be filed and no tax balance is estimated to be due, an automatic six month extension request may be filed on or before the original due date of the income tax return either by filing Form M-4868 or by submitting a copy of the federal extension application, which in most cases is U.S. Form 4868. If U.S. Form 4868 or other federal form is submitted as a substitute for Massachusetts Form M-4868, "For Massachusetts purposes" should be written on top of the form. If a Massachusetts tax liability is subsequently determined to be due, however, and at least 80% of the tax due has not been paid on or before the original due date of the return, the extension is void and interest and penalties apply.
(d) Non-automatic extension. Further extensions beyond the six month period are generally not available. However, certain taxpayers who reside abroad and qualify for a longer extension under section 6081 of the Internal Revenue Code, may file a request for an additional extension to the Commissioner. The request must be filed in duplicate on Form M-4868 on or before the due date of the return, accompanied by payment of the estimated tax due. The extension is valid only if granted in writing by the Commissioner. If the non-automatic extension is not granted, the request will be processed as an automatic six month extension application.
(6) Estate Tax Returns.
(a) An extension of time to file an estate tax return may be requested by the executor or administrator of the estate; if no executor or administrator has been appointed or is qualified and acting within the Commonwealth, the extension request may be filed by any person in actual or constructive possession of the decedent's property.
(b) The extension request shall:
1. be filed in duplicate with the Estate Tax Bureau on Form M-4768
2. be accompanied by payment of the balance of tax estimated to be due,
3. indicate the reasons the return cannot be completed on or before the due date.
Extensions are usually granted for a period of six months from the due date of the return although the exact length of the extension is at the discretion of the Commissioner. If an extension has been granted, any request for an additional extension must be filed in duplicate on Form M-4768 prior to the termination of the previous extension period.
(7) Other Extensions. Taxpayers filing returns required by M.G.L. c. 62C other than income, corporation or estate tax returns may request an extension by letter. The request must demonstrate undue hardship to the taxpayer if the request is not granted. These extensions are not granted automatically.
(8) Termination of Extensions. The Commissioner of Revenue may terminate extensions of time to file returns by mailing notice of such termination to the taxpayer or his representative at least ten (10) days prior to the termination date stated in the notice.
(9) Federal Extensions. An extension to file a federal tax return does not result in an extension for Massachusetts tax purposes. To obtain an extension to file a Massachusetts return, a separate request must be filed.
(10) Void Extensions. All applications for extensions should be accompanied by payment of the entire balance of the tax estimated to be due.
(a) Corporate Returns. Extensions to file corporate returns required by M.G.L. c. 62C, §§ 11 or 12 are void if the taxpayer fails to pay at least fifty percent (50%) of the tax due on or before the original due date of the return.
(b) Other Returns. Extensions to file other returns required by M.G.L. c. 62C are void if the taxpayer fails to pay at least eighty percent (80%) of the tax due on or before the original due date of the return.
(c) If the taxpayer demonstrates to the Commissioner that it was impossible to accurately determine the tax due at the time the extension request was filed, the Commissioner may waive the penalty for a late return or a penalty which has been assessed may be abated although the amount of tax paid by the due date was finally determined to be less than 50% of the tax due in the case of a corporation or 80% of the tax due in other cases.
(11) Penalties. If an extension is void or if the return or an additional request for extension is not filed with the Commissioner within the extension period, a penalty is imposed on the unpaid balance of the tax due at the rate of one percent (1%) per month or fraction thereof, but not exceeding twenty five percent (25%) of the unpaid balance. The late return penalty is computed from the due date of the return to the date the return is actually filed. For purposes of 830 CMR 62C.19.1(11), due date means the original due date if the extension is void, or the date on which any valid extension expires.
(12) Interest. Any portion of the tax which is not paid on or before the time the tax return is required to be filed, determined without regard to any extension of time for filing the return, is subject to interest from the original due date to the date of payment.
830 CMR 62C.19.1: Extensions of Time for Filing Returns (old number 62C.19)
Date of Promulgation: 4/10/80
Amended by Emergency Regulation: 5/24/84