|Referenced Sources:||Massachusetts General Laws|
This Technical Information Release announces an amendment to the Massachusetts federal change provision, G.L. c. 62C, § 30, brought about by recent legislation, St. 2003, c. 143, § 1.
Under G.L. c. 62C, § 30, when the federal taxable income of certain taxpayers is finally determined by the federal government to be different from that originally reported, the "federal change" must be reported to the Massachusetts Department of Revenue. Taxpayers who must report changes are those with incomes taxable under G.L. cc. 62 or 63 (personal income tax or corporate excise, respectively), or with federal taxable estates subject to Massachusetts estate tax under G.L. c. 65C.  If as a result of the federal change a taxpayer owes additional tax to Massachusetts, the tax must be paid, with interest, when the federal change is reported. If as a result of a federal change, a taxpayer believes that a lesser Massachusetts tax is due, an abatement application may be filed with the Department of Revenue within one year from the date of notice of a final determination of change by the Internal Revenue Service. G.L. c. 62C, § 30.
For purposes of G.L. c. 62C, § 30, as amended by St. 2003, c. 143, § 1, a change in federal taxable income  resulting from a closing agreement,  an offer in compromise  or any similar agreement constitutes a final determination of a change by the federal government. An agreement may constitute a final determination whether or not any audit or other review is complete with respect to issues not addressed in the agreement. Such an agreement need not result from a formal deficiency assessment against the taxpayer. Taxpayers must report changes resulting from those agreements to the Department of Revenue. The statutory amendment is applicable to closing agreements, offers in compromise, or similar agreements executed on or after January 1, 2004. 
/s/ Alan LeBovidge
Commissioner of Revenue
May 14, 2004