| Date: | 03/28/2025 |
|---|---|
| Organization: | Massachusetts Department of Revenue |
| Regulatory Authority: | Massachusetts General Laws |
| Official Version: | Published by the Massachusetts Register |
PROPOSED REGULATION
830 CMR: DEPARTMENT OF REVENUE
830 CMR 62C.00: STATE TAX ADMINISTRATION
830 CMR 62C.00 is amended by adding the following section:
830 CMR 62C.8.2: Motor Vehicle Insurer Annual Information Returns
(a) Scope of Regulation. 830 CMR 62C.8.2 sets forth the reporting requirements for motor vehicle insurers who make a payment pursuant to a motor vehicle insurance policy to a motor vehicle repair shop for the servicing or repair of a motor vehicle in Massachusetts.
(b) Background. M.G.L. c. 62C, § 8 generally requires payors that have made payments of income subject to taxation under M.G.L. c. 62 during the preceding calendar year to file with the Commissioner an annual report reflecting such income on the same basis as is required by the federal government. M.G.L. c. 62C, § 8 also allows the Commissioner to require additional reporting requirements that differ from those required by the federal government. 830 CMR 62C.8.2 requires motor vehicle insurers who make a payment pursuant to a motor vehicle insurance policy to a motor vehicle repair shop for the servicing or repair of a motor vehicle in Massachusetts during a calendar year to file an annual information return with the Commissioner and furnish a copy to the motor vehicle repair shop. The information return requirement under 830 CMR 62C.8.2 is effective beginning with payments made by motor vehicle insurers to motor vehicle repair shops on or after January 1, 2025.
(c) Outline of Topics. 830 CMR 62C.8.2 is organized as follows:
(1) Scope of Regulation; Background; Outline of Topics
(2) Definitions
(3) General Rule
(4) Record Keeping
(5) Penalties
For the purposes of 830 CMR 62C.8.2, the following terms have the following meanings:
Commissioner. The Commissioner of Revenue or the Commissioner's duly authorized representative.
Motor Vehicle Insurer. A property and casualty insurer as defined in M.G.L. c. 63, § 29E that is licensed to issue motor vehicle insurance in the Commonwealth.
Motor Vehicle. A motor vehicle as defined in M.G.L. c. 90, § 1.
Motor Vehicle Insurance Policy. A motor vehicle property damage liability insurance policy, as defined in M.G.L. c. 90, § 34O, as well as optional motor vehicle insurance coverage, such as collision coverage as defined in M.G.L. c. 90, § 34O(1), comprehensive coverage as defined in M.G.L. c. 175, § 113O, and limited collision coverage as defined in M.G.L. c. 90, § 34O(2).
Motor Vehicle Repair Shop. A motor vehicle repair shop or motor vehicle glass repair shop as defined in M.G.L. c. 100A, § 1 that has a business location in Massachusetts.
Sales and Use Tax. The sales tax imposed under M.G.L. c. 64H or the use tax imposed under M.G.L. c. 64I.
(a) Reporting Requirements. A motor vehicle insurer that makes a payment pursuant to a motor vehicle insurance policy to a motor vehicle repair shop for the servicing or repairing of a motor vehicle, including, but not limited to, payments made to a motor vehicle repair shop for sublet towing, gate fees, estimate fees, and storage, in Massachusetts during the calendar year must file an information return electronically with the Commissioner and furnish a copy to the motor vehicle repair shop. The information return must include, but is not limited to, the following information:
i. the name of the motor vehicle repair shop;
ii. the federal identification number of the motor vehicle repair shop;
iii. the motor vehicle repair shop’s physical address, or, if unavailable, its mailing address;
iv. the professional license or registration number of the motor vehicle repair shop;
v. the total amount of payments made by the motor vehicle insurer to the motor vehicle repair shop for the servicing or repair of a motor vehicle in Massachusetts during the calendar year;
vi. the total amount of such payments that are attributable to the payment of Massachusetts sales and use tax in relation to the servicing or repair of a motor vehicle;
vii. any other information required by the Commissioner.
(b) Due Dates. All information returns must be furnished to the motor vehicle repair shop on or before January 31st following the close of the calendar year and be filed with the Commissioner by March 31st following the close of said calendar year.
(c) Correcting an Incorrect Information Return. Where a motor vehicle insurer identifies an error in an already filed information return, the motor vehicle insurer must file a corrected information return with the Commissioner by December 31st following the close of the calendar year. The motor vehicle insurer must furnish a copy of the corrected information return to the motor vehicle repair shop within 30 days of filing. A motor vehicle insurer that fails to correct incorrect information returns may be subject to the penalties described in 830 CMR 62C.8.2(5).
(a) General Rule. All motor vehicle insurers and motor vehicle repair shops must maintain complete and accurate tax and tax-related records in accordance with 830 CMR 62C.25.1. In addition to the records required to be maintained under 830 CMR 62C.25.1, motor vehicle insurers and motor vehicle repair shops must maintain the records described in 830 CMR 62C.8.2(4)(a) or (b), as applicable.
(b) Motor vehicle insurers. Motor vehicle insurers must maintain records regarding their payments to motor vehicle repair shops for the servicing or repairing of a motor vehicle in Massachusetts. Such records include, but are not limited to, the name of the insured on whose behalf payments were made, the deductible amount for each claim, the total amount paid that is attributable to sales and use tax for each claim, the date of each individual payment, the check number of each check issued to the motor vehicle repair shop or where applicable, the motor vehicle repair shop’s electronic funds transfer (EFT) number, and all W-9s for motor vehicle repair shops to which the motor vehicle insurer makes a payment that is subject to 830 CMR 62C.8.2(3)(a).
A motor vehicle insurer that fails to file an information return with the Commissioner, or to furnish a copy of an information return to a motor vehicle repair shop, without reasonable cause for this omission, is subject to the penalties imposed pursuant to M.G.L. c. 62C, § 77 for each instance of non-compliance with 830 CMR 62C.8.2.
Proposed Regulation – Public Hearing 4/30/25
Written comments may be emailed to RulesandRegs@dor.state.ma.us.
