(a) General. In its discretion, the Department may issue a Letter Ruling in response to a question from an individual or an organization about the application of the Massachusetts tax laws to a particular transaction or other set of facts.
(b) Definition. A Letter Ruling is an "advisory ruling" as defined in M.G.L. c. 30A, § 8, issued by the Department in writing to a taxpayer or the taxpayer’s authorized representative that interprets and applies the Massachusetts tax laws to a specific transaction or other set of facts.
(c) Letter Rulings Pertaining to Specific Transactions. The Department will generally only issue a Letter Ruling that is requested with respect to a particular transaction when that transaction is prospective. If a transaction has been completed, the Department may, in its discretion, issue a Letter Ruling, but generally only if the taxpayer’s tax return for the taxable period in which the transaction was completed has not yet been filed.
(d) Circumstances Where the Department Will Not Issue a Letter Ruling. The Department may decline to issue a Letter Ruling for any reason. The Department does not generally issue a Letter Ruling where:
1. The request for a Letter Ruling presents the same or a similar issue that the Department knows or has reason to believe is before it in connection with an examination or audit of the liability of the same taxpayer for the same or any other prior period.
2. The request for a Letter Ruling pertains to hypothetical situations.
3. The request for a Letter Ruling does not identify the taxpayer or taxpayers.
4. The request for a Letter Ruling pertains to an issue that is adequately addressed by the Massachusetts tax laws, public written statements, or a decision of the Massachusetts or federal courts.
5. The request for a Letter Ruling raises issues that are inherently factual, including, but not limited to, questions of domicile or nexus.
(e) Requirements for a Request for a Letter Ruling.
1. Each request for a Letter Ruling must contain a complete written statement of all relevant facts relating to the transaction or other subject of the requested Letter Ruling. Such statement must include the name, address, and taxpayer identification number of the taxpayer and any pertinent related parties; a full and precise statement of the business reasons for the transaction or other action that may be contemplated; and a carefully detailed description of the transaction or other subject of the requested ruling. The Department does not issue Letter Rulings upon oral requests.
2. Copies of all documents relevant to the requested Letter Ruling must be submitted as part of the request. The pertinent facts reflected in the documents submitted must be highlighted in the taxpayer's statement of the facts and not merely incorporated by reference, and must be accompanied by an analysis of their relevance to the issue or issues, specifying the applicable provisions of the Massachusetts tax laws. Where the request pertains to only one step of an integrated transaction, the facts and circumstances must be detailed with respect to the entire transaction.
3. The request must contain a statement whether, to the best of the knowledge of the taxpayer or the taxpayer’s representative, a similar or identical issue is being considered by the Department in connection with an active examination or an audit of the liability of the same taxpayer or a related party for the same or any other prior period.
4. If a request for a Letter Ruling on the same transaction or issue has been or is being submitted to the Internal Revenue Service or the taxing authority of another state, the request for a Letter Ruling to the Department must disclose this fact.
5. A request for a Letter Ruling must state the taxpayer’s view as to the correct tax result and furnish a statement of relevant authorities to support such view.
6. A request for a Letter Ruling by or for a taxpayer must be signed by the taxpayer or his authorized representative. If the request for a Letter Ruling is made by a taxpayer’s representative, a duly executed power of attorney (Form M-2848) must be provided to the Department.
7. A request for a Letter Ruling should be addressed to the Commissioner of Revenue, 100 Cambridge Street, Boston, Massachusetts 02114; Attention: Rulings and Regulations Bureau.
8. The Department will acknowledge receipt of all requests for Letter Rulings. If a request for a Letter Ruling does not comply with the provisions of this regulation, the Department will advise the taxpayer of the requirements that have not been met.
(f) Conferences. A taxpayer seeking a Letter Ruling may request a conference with the Department. Such a conference, held either in person or by telephone, would be informal in nature and conducted for the purpose of discussing the issues raised by the request for Letter Ruling. A conference will only be scheduled when the Department concludes that it would be useful in making the determination. The conference shall not be construed as an "adjudicatory proceeding" as defined by M.G.L. c. 30A.
(g) Request for Additional Information. The Department may request that the taxpayer or the taxpayer’s representative submit additional information or documents in connection with a request for a Letter Ruling.
(h) Withdrawal of Requests. The taxpayer's request for a Letter Ruling may be withdrawn at any time prior to the issuance of the Letter Ruling. However, in such a case, the Department may consider the information submitted by the taxpayer in the request for a Letter Ruling in any subsequent audit or examination by the Department of the taxpayer's return. Even though a request is withdrawn, all correspondence and exhibits will be retained by the Department. Notwithstanding a taxpayer’s withdrawal of its request for a Letter Ruling, the Department may decide to issue a generally-applicable public written statement on the same or similar issues that were presented in the request.
(i) Effect of Letter Rulings.
1. A taxpayer may rely on a Letter Ruling issued to that taxpayer unless and until the Letter Ruling is revoked, modified, or superseded, whether by a direct DOR pronouncement or as a result of a change in the Massachusetts tax laws, later court decisions, or subsequent public written statements.
2. A Letter Ruling issued to a taxpayer with respect to a particular transaction represents a determination of the Department on that transaction only.
(j) Confidentiality.
1. Persons requesting a Letter Ruling must do so on the basis that the text of any Letter Ruling will be published in the manner described in 830 CMR 62C.3.1(6)(k), subject to the redactions hereinafter described. Persons requesting a Letter Ruling waive all rights to prevent disclosure of the text of the Letter Ruling, except as such rights are provided in 830 CMR 62C.3.1(6)(j)(2).
2. Before publishing any Letter Ruling under 830 CMR 62C.3.1(6)(k) the Department shall redact:
a. the names, addresses, and other identifying details of the person to whom the Letter Ruling pertains and of any other person identified therein;
b. information specifically exempted from disclosure by any statute that is applicable to the Department;
c. information the disclosure of which would constitute a clearly unwarranted invasion of personal privacy.
d. any information the Department deems to be exempt from public disclosure under M.G.L. c. 4, § 7, Paragraph 26 or other law.
The Department will treat information redacted pursuant to this paragraph as confidential taxpayer information prohibited from disclosure under M.G.L. c. 62C, § 21.
Before publishing a Letter Ruling, the Department will, at the taxpayer’s request, give the taxpayer an opportunity to indicate whether the Letter Ruling in its proposed redacted form contains information that the taxpayer believes should also be redacted as confidential. The Department shall ultimately make the final determination as to what contents are confidential and subject to redaction.
(k) Publication of Letter Rulings. The Department will publish Letter Rulings in the MASSTAX Guide and on the Department’s website at http://www.mass.gov/dor and may take steps to bring Letter Rulings to the attention of the news media and publishers of tax services.