Bill > H2597

This bill aims to improve the tax administrative laws of the Commonwealth. It has several key provisions: 1. It allows the Commissioner of Revenue to disallow the asserted tax consequences of a transaction by applying the "sham transaction doctrine" or other related tax doctrines, in which case the taxpayer has the burden of demonstrating that the transaction had a valid business purpose and economic substance apart from the asserted tax benefit. However, it clarifies that the provision does not apply to basic business transactions that have been respected at common law, such as the choice between debt or equity financing, the choice of entity, or the use of related-party entities. 2. It extends the filing deadline for corporate tax returns from 6 months to 7 months for taxpayers subject to Section 32B of Chapter 63. 3. It requires the Commissioner to pay reasonable attorney fees to a taxpayer if the Commissioner fails to accept an offer of 35% or more of the assessed liability in full settlement and the Appellate Tax Board finds for the taxpayer. 4. It modifies the schedule of estimated tax payments for corporations, including providing an exception for "large corporations" regarding the use of the prior year's tax liability for calculating the first installment. 5. It establishes a tax amnesty program for a 2-month period in fiscal year 2019, during which the Commissioner can waive certain penalties for taxpayers who come into compliance by filing returns, making payments, or otherwise complying with the tax laws.

Budget and Finance

https://malegislature.gov/Bills/191/H2597