Massachusetts SALT Providing updates and commentary on Massachusetts state tax, with a focus on Massachusetts corporate excise, and sales and use taxes

Reminder for Taxpayers to File Refunds for the Defunct Massachusetts “Tech Tax”

Posted in Refunds, Sales Tax Refunds

For nearly 220 vendors, time is running out to file applications for abatement to obtain refunds of the nearly $800,000 in taxes paid to the Department of Revenue under the repealed sales tax on software services.  According to a recent blog post by the Department, although approximately 250 vendors collected the tax from customers and paid it to the Department, only 30 vendors have filed for refunds so far.

The statute of limitations for refund claims related to the revoked sales tax on software services is December 31, instead of the standard 3 years, so time is running out.

However, for vendors that do file claims, the Department has established an expedited procedure intended to rule on a claim within one week.  Applications for abatement seeking refunds of the sales tax on software services must be filed via the Department’s webfile process and any refunded tax must then, of course, be refunded to customers—a potential holiday gift for the year end.