MASSACHUSETTS DEPARTMENT OF REVENUE REGULATION FACT SHEET


TITLE: 830 CMR 62C.26.1: Assessments

SUMMARY OF REGULATION: This Regulation explains the procedures the Commissioner follows when assessing taxes pursuant to M.G.L. c. 62C, §§ 3, 26, 27, 28, 29, 30, 31, 32, and 36. This Regulation, in particular:

  • defines relevant terms including "Abatement," "Assessment," "Assessment Records," "Deficiency," "Deficiency Assessment," "Double Deficiency Assessment," "Instruction to Bill," "Jeopardy Assessment," "Notice of Intention to Assess" and "Notice of Assessment,"

  • states the general rule by which an assessment is made upon the filing of a return,

  • states the general rule by which a deficiency assessment is made by the Commissioner,

  • states the general rule followed when the Commissioner determines that a taxpayer has overpaid tax,

  • explains what is required of the Commissioner when making a deficiency assessment, the procedures that will be followed to assure that these requirements are met and related matters (such as the ramifications of a taxpayer making payment upon receipt of a notice of intention to assess),

  • explains what is required of the Commissioner to make a deficiency assessment by correcting arithmetic and clerical errors shown on a return, examples of these errors are provided,

  • explains what is required of the Commissioner and what the procedures are for making other deficiency assessments, including

  • for failure to file a return or for filing a false or fraudulent return,
  • for a non-resident's failure to file a return or for filing a false or fraudulent return,
  • upon an executor's omission of items from the gross estate,
  • upon an omission of gross income, in excess of 25%, in certain returns,
  • upon an omission of tax, in excess of 25%, in certain returns,
  • a double deficiency assessment for failure to file a return, or for filing an incorrect or insufficient return,
  • a double deficiency assessment for filing a false or fraudulent return,
  • in cases when collection of a tax is in jeopardy,
  • with respect to a federal change

  • explains the procedures for crediting or refunding taxpayer overpayments resulting from the Commissioner's verification of a return or other examination,
  • discusses corrections of erroneous deficiency assessments and refunds of payments made toward erroneous deficiency assessments,

  • explains that the Commissioner and a taxpayer may agree to extend the usual period allowed for making assessments and the effect these agreements have.

  • 10/8/04 Amendment: The updated the regulation to reflect statutory changes to G.L. c. 62C that were announced in Technical Information Release 03-18. That statutory change permits the Department to correct a return (and the self-assessment) based on information from third party sources, such as unreported income from DET or the lottery, without first issuing a Notice of Intention to Assess. The statutory change was effective 7/1/03.

  • 7/13/07 Amendment: This amendment further updated the regulation. New computer technology will allow the Department of Revenue, in most cases, to generate the Notice of Assessment required by G.L. c. 62C, § 26 without the manual preparation of an Instruction to Bill. The amendment clarifies that the date of an assessment is the earlier of the date of the Notice of Assessment or the Instruction to Bill. The amendment also updates the regulation to reflect the "postmark" rule in G.L. c. 62C, § 33A, as amended.

AUTHORITY: Pursuant to authority granted the Commissioner by G.L. c. 14, § 6(1); G.L. c. 62C, § 3.

REGULATORY HISTORY:
Regulation promulgated 04/14/89
amended 02/05/99
amended 10/8/04
amended 7/13/07

PREPARED BY:
Massachusetts Department of Revenue
Rulings and Regulations Bureau
100 Cambridge Street, 7 th floor
Boston, Massachusetts 02114
(617) 626-3250