The Commissioner of Revenue is responsible for compiling an annual list of corporations subject to property tax, motor vehicle excise and business corporate taxes, under Chapters 59, 60A and 63. MGL c. 58, sec. 2. The list is important for Massachusetts boards of assessors because it provides critical information to determine applicability of specific property tax exemptions directed at different classifications of corporations. To improve accuracy and usefulness of the list, the Department of Revenue instituted a reporting requirement, the Annual Certification of Entity Tax Status, per Directive 12-5. It enables DOR to gather supplemental information to:
- Capture unincorporated companies (partnerships, LLCs, business trusts and the like) that are treated as corporations for federal income tax purposes to be included in the annual list
- Include subsidiary/unitary members reported on combined returns that had been excluded from previous lists
- Identify limited liability companies (LLCs) that are not corporations and should not be included in the annual list
The Annual Certification of Entity Tax Status is an annual filing. Any legal entity—other than a sole proprietor, non-profit or entity that has no personal property in Massachusetts— that is treated as a corporation for federal income tax purposes must file the annual certification with Department of Revenue.
The application is located on the MassTaxConnect website.On the home page, there are three tabs located at the bottom of the page, Quick Links, Business and Individual. Do NOT log into an account. Select the Business tab and then click on Submit Annual Certification of Entity Tax Status, which is located in the middle column. A set of questions must be answered and affirmed before moving to the NEXT screen at which time the entity’s federal employer identification number (FEIN) is entered and confirmed.
There are Frequently Asked Questions available on the MassTaxConnect website for further assistance.