|Referenced Sources:||Massachusetts General Laws|
The federal Internet Tax Freedom Act, 47 U.S.C. 151, Ancillary Laws (“ITFA”) is scheduled to expire on October 1, 2015, in the absence of Congressional action. In light of the distinct possibility that Congress may allow ITFA to expire and then subsequently enact a retroactive extension of the Act, as it has done in the past, the Department is hereby advising vendors of Internet access to customers in Massachusetts that for purposes of sales tax collection and remission, those vendors may continue to rely on the lists of taxable telecommunications services and non-taxable and exempt services, including Internet access charges, as published in TIR 05-8, until further notice from DOR. Such vendors may also continue to rely on the provisions of Section 11061 of ITFA in taxing retail sales of bundled charges including Internet access.
This TIR does not relieve purchasers of taxable services of potential use tax liability in the event that ITFA expires and Congress does not enact an extension; however, any such liability does not need to be reported until further notice from DOR and no penalties would apply to late reporting or payment of such use tax.
If neither Congress nor the Massachusetts legislature has acted by December 31, 2015, the Department anticipates providing further guidance.
Commissioner of Revenue
September 8, 2015