Bill > S1574

This bill makes several changes to the administrative tax laws of the Commonwealth of Massachusetts. Key provisions include: 1. Allows the state tax commissioner 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 bears the burden of demonstrating the transaction had a valid business purpose and economic substance beyond just tax avoidance. However, this does not apply to certain basic business transactions that have been respected under common law. 2. Extends the filing deadline for corporate tax returns from 6 months to 7 months for certain taxpayers. 3. Requires the state tax commissioner to pay reasonable attorney fees if the taxpayer prevails at the Appellate Tax Board on an offer-in-compromise settlement of 35% or more of the assessed liability. 4. Modifies the schedule and calculation of quarterly estimated tax payments for corporations. 5. Establishes a 2-month tax amnesty program in fiscal year 2018 where penalties can be waived if taxpayers come into full compliance by paying past-due taxes, subject to certain exceptions.

Budget and Finance

https://malegislature.gov/Bills/190/S1574