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Massachusetts Denies ‘True Debt’ Treatment for Cash Management Obligations

The Massachusetts Appellate Tax Board (“ATB”) has once again issued a Findings of Fact and Report upholding a Department assessment on the basis that a taxpayer’s intercompany obligations under a cash management system were not bona fide debt.  The most recent decision, issued September 4, 2015, is Staples, Inc. and Staples Contract and Commercial, Inc. … Continue Reading

ATB rules that orthopedic braces sold by orthopedic surgeon are exempt from sales and use tax.

Earlier today, the Appellate Tax Board (“ATB”) released its Findings of Fact and Report in Excel Orthopedic Specialists, Inc. v. Commissioner, holding that orthopedic braces—rigid and semi-rigid knee, elbow, ankle, wrist, and back braces—were exempt from sales and use tax when sold by a medical practice of orthopedic surgeons.  The ATB concluded that the braces … Continue Reading

Corporate members of LLC can qualify as mutual fund service corporations

On March 13, 2014, the Department issued Letter Ruling 14-2, which ruled that the members of an LLC—four S Corporations—qualified as mutual fund services corporations because the income passed through from the LLC to its members qualified as income from mutual fund services. The LLC was treated as a partnership for federal and Massachusetts tax … Continue Reading
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