Bill > S1885

This bill makes several changes to the administrative tax laws of the Commonwealth of Massachusetts. Specifically, it: 1. 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 the transaction had a valid business purpose and economic substance. However, the bill clarifies that this section does not alter the tax treatment of basic business transactions that have been respected at common law. 2. Extends the filing deadline for certain corporate tax returns from 6 months to 7 months for taxpayers subject to Section 32B of Chapter 63. 3. Requires the Commissioner to pay reasonable attorney fees, up to 20% of the assessed amount, if the taxpayer's offer to settle at 35% or more of the assessed liability is rejected and the Appellate Tax Board finds in favor of the taxpayer. 4. Modifies the due dates and calculation of estimated tax payments for corporations. 5. Establishes a tax amnesty program for 2 consecutive months in fiscal year 2018, during which time penalties can be waived for certain delinquencies, subject to certain conditions and limitations.

Budget and Finance

https://malegislature.gov/Bills/193/S1885