Multistate Tax Alert: Massachusetts Issues Pending Draft Directive
On January 10, 2011, the Massachusetts Department of Revenue issued for public comment a working draft of a Directive that, if formally adopted, would allow any combined group that filed its 2009 combined report in a timely manner on or before January 31, 2011, and that made an affiliated group election or a worldwide election upon such return, to withdraw that election by submitting an on-line application by March 15, 2011.
To the extent that the withdrawal of the election would alter the combined group's Massachusetts tax due, the combined group would also be required to electronically re-file its combined report by March 15, 2011. If an additional tax is due, interest but not penalties would apply. Alternatively, if a refund is due on the amended return, the taxpayer would also be required to manually file a Form CA-6 to request the refund. The Form CA-6 would also have to be filed by March 15, 2011.
Comments on this pending draft Directive are due by January 17, 2011. In this Tax Alert we summarize the provisions of the currently pending version of the document.