830 CMR: DEPARTMENT OF REVENUE
830 CMR: 62C.00: STATE TAX ADMINISTRATION
830 CMR: 62C.00 is repealed and replaced with the following:
830 CMR 62C.4.1: Use of Whole Dollar Method
Regulation 830 CMR 62C.4.1: Use of Whole Dollar Method
830 CMR: DEPARTMENT OF REVENUE
Table of Contents
(1) Statement of Purpose; Application and Effective Date
(a) Purpose. The purpose of this regulation, 830 CMR 62C.4.1, is to provide for the use of whole dollar amounts for any return, statement or other document, whether required by the Commissioner or elected by the taxpayer. See M.G.L. c. 62C, § 4.
(b) Application and Effective Date. This regulation, 830 CMR 62C.4.1, applies to the administration of taxes under M.G.L. c. 62C. This regulation takes effect as of the date of promulgation.
For the purposes of 830 CMR 62C.4.1, the following term shall have the following meaning:
Whole Dollar Method, a method of reporting dollar amounts in which the fractional part of a dollar is disregarded unless it amounts to one half dollar or more, in which case the amount is rounded up to the next full dollar.
(3) Commissioner's Requirement of Whole Dollar Method
The Commissioner may require, with respect to any amount that must be shown on a form prescribed by the Commissioner for any return, statement, or other document, that the whole dollar method be used. The Commissioner may effectuate this requirement by publishing or authorizing forms or schedules that do not permit the entry of fractional dollar amounts, or by a statement in the instructions requiring the whole dollar method, or both.
(4) Taxpayer's Election to Use Whole Dollar Method
(a) Method of Election. A taxpayer filing a return or form under M.G.L. c. 62C that provides either in the return or form itself or in the accompanying instructions that whole dollar amounts may be used may elect to use whole dollar amounts by reporting all amounts rounded off to the nearest whole dollar amount in the manner set out in 830 CMR 62C.4.1 (5) and (6).
(b) Time of Election. The election to use the whole dollar method must be made by filing a return or form employing such method on or before the time prescribed for filing such return or form, including extensions of time granted for such filing.
(c) Effect of Election. The taxpayer's election shall be irrevocable for the return or form filed for a given taxable year, but a new election may be made on the return or form filed for a subsequent taxable year.
(5) Computation of Whole Dollar Amount
For the purpose of arriving at the nearest whole dollar, a fractional part of a dollar shall be disregarded unless it amounts to one-half dollar or more, in which case the amount shall be increased to the next higher even dollar. The following illustrates the application of 830 CMR 62.C.4.1:
|Exact Amount||To be reported as|
|$ 18.49||$ 18|
(6) Application of Whole Dollar Method
(a) Tax in whole dollar amount. If the taxpayer uses the whole dollar method, tax must be calculated as a whole dollar amount.
(b) Two acceptable ways of calculating supporting amounts. The whole dollar method as provided in this regulation, 830 CMR 62C.4.1, may be applied in one of two ways. Either method is acceptable as long as the taxpayer uses one method consistently throughout the return. Under either method, amounts reported on a return, form or any schedule required to be submitted with the return or form are rounded to the whole dollar amount. Taxpayers may employ one of the following methods:
1. Supporting amounts not rounded. Items taken into account in determining amounts entered on a return, form, or schedule are calculated to the penny before being added or subtracted; or
2. Supporting amounts rounded. Items taken into account in determining amounts entered on a return, form, or schedule are rounded to the whole dollar amount before being added or subtracted.
830 CMR 62C.4.1: M.G.L. c. 14, § 6(1); c. 62C, § 3, c. 62C, § 4
New Regulation Promulgated: 11/3/06