Tag Archives: Regulations

Filing Season Reminder: Revisions (and Challenges) to Alternative Apportionment Regulation

Any taxpayers considering taking an alternative apportionment position on its corporate excise tax returns this fall should remember that the Department adopted a revised alternative apportionment regulation, 830 CMR 63.42.1, which is applicable to the 2016 tax year. Under the regulation, a taxpayer must file a request for alternative apportionment when it files its tax return.  … Continue Reading

Hearing on August 24 regarding Massachusetts Sales Tax “Cookie” Nexus Draft Regulation for Internet Vendors

Massachusetts is looking to join a growing list of states asserting that internet vendors that lack traditional “physical presence” in a state must still collect sales tax if they have sufficient economic contacts.  But unlike states that have passed “Kill Quill” statutes that challenge Quill directly, Massachusetts takes a more nuanced approach that potentially presents … Continue Reading

Massachusetts Appellate Tax Board denies Multiple Points of Use sales tax refund claims

The Massachusetts Appellate Tax Board (“ATB”) has issued an order denying three sales tax refund claims involving multiple points of use (“MPU”) sourcing.  In each case, vendors had filed refund claims arguing that their customers were eligible for refunds of sales tax charged on the full sales price of software delivered to Massachusetts to the … Continue Reading

A Quick Overview of Substantive Changes in Final Massachusetts Market Sourcing Regulation 830 CMR 63.38.1—From 10/30/14 Draft to Final

As we reported on Friday, the Massachusetts Department of Revenue has promulgated its final regulations governing the apportionment of income (830 CMR 63.38.1).  The regulations implement legislation that mandates market-based sourcing and a throwout rule for sales other than sales of tangible personal property, effective for tax years beginning on or after January 1, 2014. … Continue Reading

Massachusetts Promulgates Final Market Sourcing Regulation

This afternoon, the Massachusetts Department of Revenue promulgated its Final Regulation 830 CMR 63.38.1: Apportionment of Income, to implement the market-based sourcing rules which took effect for tax years beginning after January 1, 2014.  The final regulation can be found here: Final Market Sourcing Regulations. The Final Regulation follows a Working Draft of the same regulation which was released by … Continue Reading

Associated Industries of Massachusetts Comments on Proposed Market Sourcing Regulations

On December 4, the Associated Industries of Massachusetts (AIM) submitted written comments to the Department of Revenue regarding the Department’s proposed market sourcing regulations.  The proposed regulations govern the sourcing of receipts from sales of services and intangibles.  In its comments, AIM rightly objected to provisions that prevent taxpayers from adjusting their sourcing methods through … Continue Reading

Public Hearing on Proposed Regulations Set for December 4

The Massachusetts Department of Revenue will hold its public hearing to discuss the proposed market sourcing regulation on December 4, 2014.  In addition, the proposed special industry apportionment regulations for Airline Corporations, Motor Carriers, and Courier and Package Delivery Services; and the proposed corporate nexus regulation are also scheduled to be heard as part of the … Continue Reading

Reed Smith Comments on the Draft Market-Based Souring Regulations

Tax Analysts published an article (subscription required) today which included some commentary from Reed Smith’s Mike Jacobs and Robert Weyman on the new Market-based sourcing regulations.  The article, written by Jennifer DePaul, includes the initial reaction of practitioners to the draft regulations which were released March 25.  Reed Smith will expand on and clarify its … Continue Reading

Massachusetts Releases Proposed Market Sourcing and Throwout Regulations, What Does it Mean for You?

On July 24, 2013, the Massachusetts Legislature replaced the cost of performance sourcing regime with a market-based sourcing rule for all tax years starting on or after January 1, 2014. The same law also added a throwout rule.  Today, the Department released their proposed regulations to implement the market sourcing and throwout rules. Reed Smith … Continue Reading
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