From time to time, the Commissioner announces expanded requirements for electronic filing and payment as authorized under G.L. c. 62C, § 5. The expansion of electronic filing and reporting requirements reflects advances in technology that have led increasing numbers of taxpayers to do business electronically.
This technical information release announces that, effective January 1, 2016, additional taxpayers will be required to file and pay their taxes electronically. The table below describes all electronic filing and payment requirements in effect as of January 1, 2016, including those requirements that were previously announced. The taxpayers impacted by the new requirements are as follows:
- New business registrants for the following excises: alcoholic beverages, cigarettes and tobacco, gasoline and fuel, ferry embarkation, satellite service, or Convention Center financing surcharges;
- Businesses with combined annual liability for wage withholding, sales and use tax, and other transactional taxes at or exceeding $5,000;1
- Certain businesses and organizations, including financial institutions, urban redevelopment excise filers and 501(c) corporations, reporting annual gross income of $100,000 or more on their corporate excise returns;
- Insurance companies;
- New and renewal applicants for tobacco retailer licenses; and
- New and renewal applicants for distributors, importers and exporters of gasoline and user-sellers or suppliers of special fuels licenses.
As of January 1, 2016, the Department of Revenue will have in place all systems necessary for taxpayers to comply with the electronic filing and payment requirements of this TIR. As of that date a taxpayer subject to this TIR will be required to file or pay electronically and will not be permitted to manually submit its filing and payment. If a taxpayer, without reasonable cause, fails to conform any filing, data transfer or payment with the method prescribed by the Commissioner, a penalty of not greater than $100 for each improper return, document or data transmission and for each improper payment shall be added to and become a part of the tax required to be paid. G.L. c. 62C, § 33(g). If, despite its best efforts, a taxpayer has difficulty making the transition from paper to electronic filing and payment, it should contact the Department’s Customer Service Bureau at (617) 887-MDOR or toll-free in Massachusetts at (800) 392-6089 to inquire about the process for a waiver of penalties.
1 The Commissioner anticipates that effective January 1, 2017, this threshold may be reduced further or eliminated. Further guidance will be forthcoming on this point.
Electronic Filing Requirements as of January 1, 2016
|Business Trustee Taxes||MUST FILE ELECTRONICALLY|
New business registrations for any of the tax types below
Businesses with certain combined tax liabilities at or exceeding the $5,000 “combined tax threshold”
Businesses or organizations:
1. that have an annual combined tax liability of $5,000 or more tallied from among all of the following types of taxes:
|2. that met the $5,000 combined tax threshold or the then-applicable combined tax threshold for electronic filing in a previous year and/or prior twelve months.|
|Corporate and Financial Institution Excises and Insurance Company Premium Tax|
Businesses or organizations:
1. that have annual gross receipts or income of $100,000 or more as described below:
2. that met this excise or tax electronic filing threshold or the then- applicable excise or tax electronic filing threshold in a previous year.
|Corporations filing extension requests.|
|Insurance companies subject to tax under G.L. c. 63.|
|Principal reporting corporation on behalf of taxpayer members of a combined group.|
|Pass-through Entity and Fiduciary Filers|
1. with 25 or more partners, or
2. at or above the partnership e-file annual income or loss threshold of:
|Partnership composite returns on behalf of individual non-resident members.|
|Pass-through entities with members other than resident individuals or with members receiving distributive share for which withholding or estimated taxes have been paid.|
|Fiduciaries with annual total Part A, Part B and Part C net taxable income of $50,000 or more.|
|Personal Income Tax|
Personal income tax preparers must file all Massachusetts personal income tax returns (i.e., Forms 1 and 1-NR-PY) electronically unless the preparer reasonably expects to file 10 or fewer original Massachusetts Forms 1 and 1-NR-PY during the calendar year or the taxpayer directs that filing be done on paper.
|Individuals filing extension requests. |
|Employers, Pension Payers, Third Party Bulk Filers, Other Payers|
|Employers filing 50 or more quarterly wage reports.|
|Pension payers filing Form M-945 and withholding income tax for payee.|
|Third party bulk filers (withhold and file for employers’ wage withholding obligation).|
|Persons who file 50 or more of any particular form in the 1099 series annually.|
|Bonded cigarette stampers.|
License Applications and Renewals
|Applicants including renewal applications for tobacco retailer licenses|
|Gasoline and Fuel Suppliers|
|Applicants including renewal applications for distributors, importers and exporters of gasoline and user-sellers or suppliers of special fuels|
 See TIR 04-30 III.F.
/s/Mark E. Nunnelly
Mark E. Nunnelly
Commissioner of Revenue
October 1, 2015