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What We Heard from You – Questions from Tax Practitioners

Thanks to all of you who give us feedback, or ask questions. It’s helpful for us to know what‘s on your mind as we share this information with other tax professionals. If you’re asking, it’s likely that others want to know as well.

Updated: August 10, 2021

Table of Contents

Payments

Like I do with the IRS, can I schedule Massachusetts estimated payments for my clients through my third-party software when I file a return?

Yes. Estimated payments may be scheduled ahead of time through third-party software for corporate tax, personal income tax and fiduciary income tax at the time a tax return is filed. They may also be filed separately from the tax return filing. Check with your vendor for more information.

My fiduciary payments are always withdrawn on the filing date.  Why can’t I have a fiduciary payment withdrawn on the due date like I can for individual taxpayers? 

You can. DOR allows scheduling (or warehousing) of tax payments for fiduciary income tax, personal income tax and corporate tax. Please check with your vendor. 

Several questions came in about the timing of check payment processing.

Paper checks received up to about two weeks before the due date are   generally processed within a day or two.  During the last couple of weeks DOR typically receives over 200,000 Personal Income Tax checks and  it takes more than a few days, even up to several weeks, to process the check payments. We regularly upgrade equipment and improve scanning to speed up the process.  

Delays are caused by an unsigned or incorrectly completed check. If a check is not accompanied by the appropriate document (a tax return or Form PV,  Income Tax Payment Voucher), it will also cause delays. We highly recommend sending the payment as early as possible to avoid the last minute crunch, and be sure to use the correct mailing address for the type of payment to ensure that it goes to the appropriate processing center.  Look at the tax form or payment voucher to find the current address.  Even better – pay electronically. Withdrawal dates can be scheduled ahead through MassTaxConnect or third-party software.

Amended Returns

Since the same form is now used for both original and amended tax returns, can DOR add a line for additional refund or additional amount owed?

For 2017 personal income tax returns, DOR added Line 41 to account for payments with the original return. For 2018, we added an additional line to account for refunds from the original return. An amended return will now reflect the expected refund or tax due.

Additional E-file Options for Third-Party Software

Will DOR allow us to file pass-through entity withholding returns through our own third-party vendor software?

DOR often hears from practitioners that it would be helpful to have additional forms available through their third-party vendor software – Forms 3M, M990T, M990T-62, and banking and insurance forms have also been mentioned. For DOR to accept a return through third-party software, it means significant IT efforts for both DOR and your software vendor. While DOR has no immediate plans to add additional forms for this filing method, we have asked software vendors to weigh in on what forms they are most likely to support. We will continue to analyze volume and other factors that play a part in the decision to expand the system.

Form 3M

What is the filing requirement for Form 3M?  Must Form 3M be filed electronically?  What about payments for Form 3M?

The filing requirement for Form 3M is $100 of taxable income. Form 3M is not required to be filed electronically nor must payments be made electronically at this time although this is subject to change. Please refer to the current electronic filing and payment requirements on the website. Even if not required, we hope that Form 3M filers will take advantage of electronic filing and payment through MassTaxConnect. 

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