Bill > S1726

This bill makes several changes to the administrative tax laws of the Commonwealth of Massachusetts. The key provisions include: 1. Allowing the Commissioner of Revenue to disallow the asserted tax consequences of a transaction under the "sham transaction doctrine" or other related tax doctrines, in which case the taxpayer has the burden of demonstrating a valid business purpose and economic substance apart from tax avoidance. However, this does not apply to basic business transactions that have been respected at common law, such as the choice of business structure or entity. 2. Extending the filing deadline for corporate tax returns from 6 months to 7 months for certain taxpayers subject to Section 32B of Chapter 63. 3. Requiring the Commissioner to pay reasonable attorney fees, not exceeding 20% of the assessed amount, if the taxpayer's offer of 35% or more of the assessed liability is rejected and the Appellate Tax Board rules in favor of the taxpayer. 4. Modifying the quarterly estimated tax payment requirements for corporations, including a provision for "large corporations" as defined in the Internal Revenue Code. 5. Establishing a two-month tax amnesty program in fiscal year 2018, during which penalties can be waived for taxpayers who come into compliance by paying their outstanding tax liabilities.

Budget and Finance

https://malegislature.gov/Bills/191/S1726