Current through Register 1531, September 27, 2024
(1)
Statement of Purpose;
Effective Date; Outline of Topics.
(a)
Statement of
Purpose. Clearly articulated and widely communicated rules,
standards and instructions are an important tool in achieving voluntary
compliance with Massachusetts tax laws. The Department of Revenue publishes
public written statements as well as other documents and forms to explain and
communicate the rules that taxpayers and others must follow in order to comply
with their obligations, established by law, to file returns and pay all taxes
due. The purpose of
830
CMR 62C.3.1 is to describe the various types
of public written statements and other documents published or issued by the
Department of Revenue and the general procedures followed by the Department in
issuing public written statements.
(b)
Effective Date.
830
CMR 62C.3.1 is effective April 7,
2017.
(c)
Outline of
Topics.
830
CMR 62C.3.1 is organized as follows:
1. Statement of Purpose; Effective Date;
Outline of Topics;
2.
Definitions;
3. General;
4. Regulations;
5. Directives and Technical Information
Releases;
6. Letter
Rulings;
7. Informational Guideline
Releases;
8. Local Finance
Opinions; and
9. Materials That Are
Not Public Written Statements.
(2)
Definitions. The
following words used in
830
CMR 62C.3.1 have the following meanings,
unless the context otherwise requires:
Commissioner. The Commissioner of
Revenue.
Department. The Massachusetts
Department of Revenue (DOR).
Massachusetts Tax Laws. The tax
statutes of the Massachusetts General Laws that are within the official purview
of the Department, the regulations thereunder, and related statutes and
regulations that are within the official purview of the Department.
MASSTAX Guide. An
official publication produced by the Department and Thompson Reuters or a
successor on an annual basis with periodic supplements containing the
Department's public written statements, selected forms and instructions, and
other materials.
Public Written Statements. Official
pronouncements of the Department, specifically: regulations described in
830
CMR 62C.3.1(4), Directives
described in
830
CMR 62C.3.1(5), Technical
Information Releases described in
830
CMR 62C.3.1(5), Letter
Rulings described in
830
CMR 62C.3.1(6),
Informational Guideline Releases described in
830
CMR 62C.3.1(7), and Local
Finance Opinions described in
830
CMR 62C.3.1(8). All public
written statements in effect are included in the latest published version of
the official MASSTAX Guide and Supplements or published on the
Department's website at http://www.mass.gov/dor.
(3)
General. The Department may issue regulations and
other public written statements relating to the Massachusetts tax laws and
other matters within the official purview of the Department. Only public
written statements, as defined in
830
CMR 62C.3.1(2), convey the
official position of the Department with respect to the interpretation of the
Massachusetts tax laws. Other documents issued by the Commissioner that are not
public written statements should be viewed as informational only and are not
considered to be official policy statements of the Department. The Department
shall use public written statements in its oversight and administration of the
Massachusetts tax laws until they are revoked, modified, or superseded, whether
by a direct DOR pronouncement or as a result of a change in the Massachusetts
tax laws, later court decisions, or subsequent public written
statements.
(4)
Regulations. The Department may adopt, amend or repeal
regulations, including emergency regulations, under the authority granted by
M.G.L. c. 14, § 6, and in compliance with the provisions of M.G.L. c. 30A
and M.G.L. c. 62C, § 3. The Commissioner shall issue notice for the
adoption, amendment, or repeal of regulations in accordance with the
requirements set forth in M.G.L. c. 30A. A regulation under
830
CMR 62C.3.1 has the same meaning as a
"regulation" defined under M.G.L. c. 30A, § 1.
Any interested person may request that the Commissioner adopt,
amend or repeal any regulation, and may accompany the request with relevant
data, views, and arguments. Requests concerning regulations should be sent in
writing to the Bureau Chief, Rulings and Regulations Bureau, Massachusetts
Department of Revenue, 100 Cambridge St., Boston, MA 02114.
(5)
Directives and Technical
Information Releases.
(a)
General. In its discretion, the Department may issue
Directives and Technical Information Releases (TIRs).
(b)
Directives. A
Directive is a public written statement, signed by the Commissioner, which
clarifies the Department's application and interpretation of the Massachusetts
tax laws or the Department's current policies and practices in order to assist
taxpayers in complying with their Massachusetts tax obligations.
(c)
Technical Information
Releases. A TIR is a public written statement, signed by the
Commissioner, which informs the public of the Department's response to changes
in federal or Massachusetts tax laws, or to court decisions interpreting
federal or Massachusetts tax laws. Within four months of a final court decision
interpreting Massachusetts tax law, the Department will issue a TIR setting
forth the Department's position relative to that decision where required by
M.G.L. c. 62C, § 3.
(d)
Effect of Directives and TIRs. Directives and TIRs are
precedential and state the official position of the Department. Directives and
TIRs may be relied upon by taxpayers until they are revoked, modified, or
superseded, whether by a direct DOR pronouncement or as a result of a change in
the Massachusetts tax laws, later court decisions, or subsequent public written
statements.
(6)
Letter Rulings.
(a)
General. In its discretion, the Department may issue a
Letter Ruling in response to a question from an individual or an organization
about the application of the Massachusetts tax laws to a particular transaction
or other set of facts.
(b)
Definition. A Letter Ruling is an "advisory ruling" as
defined in M.G.L. c. 30A, § 8, issued by the Department in writing to a
taxpayer or the taxpayer's authorized representative that interprets and
applies the Massachusetts tax laws to a specific transaction or other set of
facts.
(c)
Letter
Rulings Pertaining to Specific Transactions. The Department will
generally only issue a Letter Ruling that is requested with respect to a
particular transaction when that transaction is prospective. If a transaction
has been completed, the Department may, in its discretion, issue a Letter
Ruling, but generally only if the taxpayer's tax return for the taxable period
in which the transaction was completed has not yet been filed.
(d)
Circumstances Where the
Department Will Not Issue a Letter Ruling. The Department may
decline to issue a Letter Ruling for any reason. The Department does not
generally issue a Letter Ruling where:
1. The
request for a Letter Ruling presents the same or a similar issue that the
Department knows or has reason to believe is before it in connection with an
examination or audit of the liability of the same taxpayer for the same or any
other prior period.
2. The request
for a Letter Ruling pertains to hypothetical situations.
3. The request for a Letter Ruling does not
identify the taxpayer or taxpayers.
4. The request for a Letter Ruling pertains
to an issue that is adequately addressed by the Massachusetts tax laws, public
written statements, or a decision of the Massachusetts or federal
courts.
5. The request for a Letter
Ruling raises issues that are inherently factual, including, but not limited
to, questions of domicile or nexus.
(e)
Requirements for a Request
for a Letter Ruling.
1. Each
request for a Letter Ruling must contain a complete written statement of all
relevant facts relating to the transaction or other subject of the requested
Letter Ruling. Such statement must include the name, address, and taxpayer
identification number of the taxpayer and any pertinent related parties; a full
and precise statement of the business reasons for the transaction or other
action that may be contemplated; and a carefully detailed description of the
transaction or other subject of the requested ruling. The Department does not
issue Letter Rulings upon oral requests.
2. Copies of all documents relevant to the
requested Letter Ruling must be submitted as part of the request. The pertinent
facts reflected in the documents submitted must be highlighted in the
taxpayer's statement of the facts and not merely incorporated by reference, and
must be accompanied by an analysis of their relevance to the issue or issues,
specifying the applicable provisions of the Massachusetts tax laws. Where the
request pertains to only one step of an integrated transaction, the facts and
circumstances must be detailed with respect to the entire
transaction.
3. The request must
contain a statement whether, to the best of the knowledge of the taxpayer or
the taxpayer's representative, a similar or identical issue is being considered
by the Department in connection with an active examination or an audit of the
liability of the same taxpayer or a related party for the same or any other
prior period.
4. If a request for a
Letter Ruling on the same transaction or issue has been or is being submitted
to the Internal Revenue Service or the taxing authority of another state, the
request for a Letter Ruling to the Department must disclose this
fact.
5. A request for a Letter
Ruling must state the taxpayer's view as to the correct tax result and furnish
a statement of relevant authorities to support such view.
6. A request for a Letter Ruling by or for a
taxpayer must be signed by the taxpayer or his authorized representative. If
the request for a Letter Ruling is made by a taxpayer's representative, a duly
executed power of attorney (Form M-2848) must be provided to the
Department.
7. A request for a
Letter Ruling should be addressed to the Commissioner of Revenue, 100 Cambridge
Street, Boston, Massachusetts 02114; Attention: Rulings and Regulations
Bureau.
8. The Department will
acknowledge receipt of all requests for Letter Rulings. If a request for a
Letter Ruling does not comply with the provisions of 830 CMR 62C.3.1, the
Department will advise the taxpayer of the requirements that have not been
met.
(f)
Conferences. A taxpayer seeking a Letter Ruling may
request a conference with the Department. Such a conference, held either in
person or by telephone, would be informal in nature and conducted for the
purpose of discussing the issues raised by the request for Letter Ruling. A
conference will only be scheduled when the Department concludes that it would
be useful in making the determination. The conference shall not be construed as
an "adjudicatory proceeding" as defined by M.G.L. c. 30A.
(g)
Request for Additional
Information. The Department may request that the taxpayer or the
taxpayer's representative submit additional information or documents in
connection with a request for a Letter Ruling.
(h)
Withdrawal of
Requests. The taxpayer's request for a Letter Ruling may be
withdrawn at any time prior to the issuance of the Letter Ruling. However, in
such a case, the Department may consider the information submitted by the
taxpayer in the request for a Letter Ruling in any subsequent audit or
examination by the Department of the taxpayer's return. Even though a request
is withdrawn, all correspondence and exhibits will be retained by the
Department. Notwithstanding a taxpayer's withdrawal of its request for a Letter
Ruling, the Department may decide to issue a generally-applicable public
written statement on the same or similar issues that were presented in the
request.
(i)
Effect of
Letter Rulings.
1. A taxpayer may
rely on a Letter Ruling issued to that taxpayer unless and until the Letter
Ruling is revoked, modified, or superseded, whether by a direct DOR
pronouncement or as a result of a change in the Massachusetts tax laws, later
court decisions, or subsequent public written statements.
2. A Letter Ruling issued to a taxpayer with
respect to a particular transaction represents a determination of the
Department on that transaction only.
(j)
Confidentiality.
1. Persons requesting a Letter Ruling must do
so on the basis that the text of any Letter Ruling will be published in the
manner described in 830 CMR 62C.3.1(6)(k), subject to the redactions
hereinafter described. Persons requesting a Letter Ruling waive all rights to
prevent disclosure of the text of the Letter Ruling, except as such rights are
provided in 830 CMR 62C.3.1(6)(j)2.
2. Before publishing any Letter Ruling under
830 CMR 62C.3.1(6)(k) the Department shall redact:
a. the names, addresses, and other
identifying details of the person to whom the Letter Ruling pertains and of any
other person identified therein;
b.
information specifically exempted from disclosure by any statute that is
applicable to the Department;
c.
information the disclosure of which would constitute a clearly unwarranted
invasion of personal privacy.
d.
any information the Department deems to be exempt from public disclosure under
M.G.L. c. 4, § 7, Paragraph 26 or other law.
The Department will treat information redacted pursuant to
M.G.L. c. 4, § 7, Paragraph 26 as confidential taxpayer information
prohibited from disclosure under M.G.L. c. 62C, § 21.
Before publishing a Letter Ruling, the Department will, at the
taxpayer's request, give the taxpayer an opportunity to indicate whether the
Letter Ruling in its proposed redacted form contains information that the
taxpayer believes should also be redacted as confidential. The Department shall
ultimately make the final determination as to what contents are confidential
and subject to redaction.
(k)
Publication of Letter
Rulings. The Department will publish Letter Rulings in the
MASSTAX Guide and on the Department's website at
http://www.mass.gov/dor and may
take steps to bring Letter Rulings to the attention of the news media and
publishers of tax services.
(7)
Informational Guideline
Releases.
(a)
General. In its discretion, the Department may issue
Informational Guideline Releases (IGRs).
(b)
Definition. An
IGR is a public written statement issued by the Department's Division of Local
Services under the authority of M.G.L. chs. 44 and 58, on matters pertaining to
assessment, classification, and administration of local taxes and municipal
finance. An IGR promotes the uniform oversight and administration of
Massachusetts local tax laws and finance laws by the Department and assists
local officials in complying with the Massachusetts local tax and finance laws.
An IGR may include standards of local assessment performance and accounting,
studies, cost and price schedules, news and reference bulletins, digests of law
on local tax and finance, and any other information that the Department deems
appropriate.
(c)
Effect. IGRs are precedential and state the official
position of the Department. IGRs may be relied upon by local officials until
they are revoked, modified, or superseded, whether by a direct DOR
pronouncement or as a result of a change in the Massachusetts tax laws, later
court decisions, or subsequent public written statements.
(8)
Local Finance
Opinions.
(a)
General. In its discretion, the Department may issue
Local Finance Opinions.
(b)
Definition. A Local Finance Opinion is a public
written statement issued by the Department's Division of Local Services that
clarifies, explains, or elaborates upon Department policy, practice, or
interpretation pertaining to specific local tax or finance questions, issues,
or matters not addressed in another public written statement. A Local Finance
Opinion promotes the uniform oversight and administration of Massachusetts
local tax laws and finance laws by the Department and assists local officials
in complying with the Massachusetts local tax and finance laws.
(c)
Effect. Local
Finance Opinions are precedential and state the official position of the
Department. Local Finance Opinions may be relied upon by local officials unless
and until they are revoked, modified, or superseded, whether by a direct DOR
pronouncement or as a result of a change in the Massachusetts tax laws, later
court decisions, or subsequent public written statements.
(9)
Materials that Are Not Public
Written Statements. The Department issues other materials of an
informational nature that are not public written statements within the meaning
of 830 CMR 62C.3.1(2). These include but are not limited to the following:
(a)
Tax Forms and
Instructions.
1.
General. The Massachusetts General Laws require
taxpayers and others to timely file tax returns and other statements of
information with the Department and to pay timely all taxes due. The Department
develops and publishes various tax forms, instructions, certificates,
applications, and others documents for taxpayers, which may be in an electronic
format, to use in preparing and filing tax returns and other statements of
information.
2.
Effect.
a.
Requirements Stated in Tax Forms and Instructions. Tax
forms and instructions state what information must be provided to the
Department and the manner in which information must be provided. Every person
filing a return or other statement of information with the Department shall set
forth fully, clearly, and accurately the information required to be
included.
b.
Errors in
Tax Forms and Instructions. Nothing contained in tax forms and
instructions supersedes, alters or otherwise affects provisions of the
Massachusetts General Laws, court decisions, public written statements or any
other sources of law. If tax forms or instructions contain an error, the
Department will attempt to communicate the correction to those affected, in the
manner the Department decides is appropriate.
c.
Continued Effect of Tax Forms
and Instructions. Tax forms specific to a particular tax year or
period (such as personal income tax returns) and their associated instructions
apply only to the taxable year or period for which they are issued. Other tax
forms and their associated instructions are effective only until such time as
they are revised or updated. Revised tax forms and instructions supersede all
prior tax forms and instructions for the taxable year or period to which they
apply.
3.
Penalties of Perjury. Returns required by M.G.L. c.
62C shall contain a declaration that they are made under the penalties of
perjury. In its discretion, the Department may require that any other tax form
or statement of information contain a declaration that it is made under the
penalties of perjury.
4.
Availability. Tax forms and instructions are available
on the Department's website at
http://www.mass.gov/dor.
(b)
Publications. The Department issues various
publications to explain aspects of the Massachusetts tax laws to the general
public. Publications are developed as general information guides to enable
taxpayers to become more familiar with their rights and responsibilities under
the Massachusetts tax laws.
(c)
Information Letters. An "information letter" is a
statement issued by the Department in response to an inquiry from an individual
or organization that states an interpretation or well-established principle of
tax law, without applying it to a specific set of facts. An information letter
may be issued when the nature of the request from an individual or an
organization suggests that the requester is seeking general information, or
where the request does not meet all the requirements for a request for Letter
Ruling as outlined in 830 CMR 62C.3.1(6)(e).
An information letter issued by the Department is informational
only and cannot be relied upon.
(d)
Other Written
Materials.
1.
General. In its discretion, the Department may publish
or issue written materials that are not otherwise described in 830 CMR 62C.3.1
or in other regulations of the Department.
2.
Effect.
Ordinarily, such written materials of the Department serve an informational and
advisory purpose only. They do not supersede, alter or otherwise affect
provisions of the Massachusetts General Laws, Department public written
statements or any other source of law. If the Department intends that the
effect of a particular document is different from the informational effect
described herein, the document will state its intended effect.
