(a) Scope of Regulation. 830 CMR 62C.11.1 sets forth the corporate excise return due date for an S corporation that is included in a combined group.
(b) Background. A combined group is required to file a combined report pursuant to M.G.L. c. 63, § 32B that includes the income and other attributes of all members of the combined group. The filing of a combined report satisfies the return filing requirements under M.G.L. c. 62C, § 11, ¶ 1 for any business corporation that, pursuant to such report, calculates and reports its own individual corporate excise liability based on the income and non-income measures of the corporate excise, or the minimum excise, as applicable, under M.G.L. c. 63, §§ 32D or 39. M.G.L. c. 62C, § 11, ¶ 2. The principal reporting corporation is required to file the combined report on behalf of the combined group. 830 CMR 63.32B.2(11). The combined report is also used to report a taxable member’s non-income measure of the corporate excise when such member’s taxable year is the same as the year used for the combined report. An S corporation taxable under M.G.L. c. 63, § 32D is includible in a combined report. See 830 CMR 63.32B.2(4)(b).
St. 2017, c. 5, §§ 11-14 (“An Act Making Appropriations for the Fiscal Year 2017 to Provide for Supplementing Certain Existing Appropriations and for Certain Other Activities and Projects”) amended M.G.L. c. 62C, §§ 7, 11, and 12 to conform the due dates for Massachusetts partnership and business corporation tax returns to the federal due dates for such tax returns, beginning with tax returns due on or after January 1, 2018. Under prior law, all business corporations, including S corporations, were required to file a corporate excise return on or before the 15th day of the third month following the close of each taxable year. Accordingly, the principal reporting corporation of a combined group was required to file a combined report on behalf of the group on or before the 15th day of the third month following the close of the taxable year of the group. Under the new statutory rules, an S corporation is required to file a corporate excise return on or before the 15th day of the third month following the close of each taxable year, and a business corporation that is not an S corporation is required to a file a corporate excise return on or before the 15th day of the fourth month following the close of each taxable year. This divergence in due dates means that the return due date for the taxpayer members of a combined group may differ when the combined group includes an S corporation even when all such corporations share the same taxable year. 830 CMR 62C.11.1 is being promulgated to clarify the corporate excise return due date in the case of an S corporation that is a member of a combined group.
(c) Outline of Topics. 830 CMR 62C.11.1 is organized as follows:
(1) Scope of Regulation; Background; Outline of Topics; Effective Date.
(2) Definitions.
(3) Return Due Dates.
(d) Effective Date. 830 CMR 62C.11.1 is effective for returns due on or after January 1, 2018.