A. Corporation, Financial Institution and Urban Redevelopment Excises
Currently, any business corporation seeking an extension of time to file its return must submit extension payments of $5,000 or more by electronic means. Business corporations including S corporations, financial institutions and taxpayers paying the urban redevelopment excise are required to file all returns and payments electronically if their gross income is $100,000 or more. Effective for tax periods ending on or after December 31, 2021, electronic filing and payment of tax will be required of all business corporations and financial institutions subject to tax under G.L. c. 63, with no income threshold.
Form 121A (Urban Redevelopment Excise), Form 63FI (Financial Institution Excise) and Form 355SBC (Small Business Corporation Excise) must be filed through MassTaxConnect.
Form 355S may be filed on MassTaxConnect if the S corporation meets all of the following conditions:
- The corporation is not requesting alternative apportionment under G.L. c. 63, § 42; and
- The corporation is not a mutual fund service corporation pursuant to G.L. c. 63, § 38(m).
All other corporate forms, including any Form 355S that does not meet the conditions above, must be filed electronically using commercial software.
Currently, the Department requires that partnerships at or above the applicable annual income or loss threshold, or with 25 or more partners, submit all Forms 3 and Schedules 3K-1 to the Department by electronic means.
Effective for tax periods ending on or after December 31, 2021, this TIR expands the electronic filing requirement to all partnership returns and schedules regardless of the partnership’s net taxable income or loss, or the number of partners in the partnership.
Form 3 may be filed electronically using commercial software or through MassTaxConnect.
Currently, fiduciaries filing Form 2 or Form 2G with total Part A, Part B, and Part C (as defined in G.L. c. 62, § 2(b)) net taxable income of $50,000 or more are required to make all payments, including estimated payments, by electronic means.
Effective for payments made on or after January 1, 2022, all fiduciary income tax payments of $2,500 or more must be made electronically. This includes estimated payments, extension payments and return payments. Payments may be made electronically using commercial software or through MassTaxConnect.
Effective for tax periods ending on or after December 31, 2021, tax return preparers must file all Massachusetts fiduciary income tax returns (Forms 2 and 2G) electronically, provided the tax return preparer reasonably expects to file more than 10 original Massachusetts Forms 2 and 2G during the calendar year. This requirement parallels the requirement stated in TIR 11-13 regarding the filing of personal income tax returns.
Forms 2 and 2G may be filed electronically using commercial software or through MassTaxConnect.
D. Sales/Use Tax, including Sales Tax on Meals
Currently, a vendor registered with the Department prior to September 1, 2003 and remitting sales and use taxes under chapters 64H and 64I, including sales taxes imposed on meals and telecommunications services, is required to file all returns and documents electronically and pay all amounts due via electronic funds transfer if the filer’s combined tax liabilities meet or exceed the $5,000 “combined tax threshold.”
Effective for returns for tax periods beginning on or after January 1, 2022, and any late-filed returns for earlier periods, all vendors remitting sales and use taxes under chapters 64H and 64I, including sales taxes imposed on meals and telecommunications, and all businesses remitting use tax on purchases, are required to file all returns and submit all payments electronically, regardless of tax liability or the date they registered to collect sales tax.
Sales and use tax returns must be filed electronically through MassTaxConnect.