Administrative Procedure  AP 302: Security Corporation Classification

Date:	02/11/2020
Organization:	Massachusetts Department of Revenue
Referenced Sources:	Massachusetts General Laws

302.1. Requirements

In general, any business 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 Regulation, 830 CMR 63.38(B).1(6).  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Security corporation classification remains in effect until revoked by DOR or withdrawn by the corporation.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, Business-Income Tax Bureau, Corporate Contact Center, 200 Arlington Street, Chelsea, MA 02150, [phone].

REFERENCES:
G.L. c. 62C, § 33A
G.L. c. 63, § 38B
830 CMR 63.38B.1(6)
DD 86-34
DD 86-35
DD 86-36
DD 86-37
Form 355 SC: Security Corporation Excise Return