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Massachusetts DOR Issues September 2021 Newsletter

Dated Sep. 17, 2021

Citations: DOR News — September 2021


The Massachusetts Department of Revenue issued its newsletter for September, announcing updates to its list of frequently asked questions regarding the tax treatment of nonresident employees' income, noting that such income will be sourced after September 13 based on where an employee's work is actually performed, regardless of where they worked before the start of the COVID-19 emergency.

The newsletter also includes a reminder for eligible vendors and operators about the extended due date for filing and paying sales and use tax and room occupancy excise tax; guidance on the new reporting requirements for sales, meals, and room occupancy excise tax filers in 2022; and a reminder about the October 15 deadline for filing personal income tax returns on extension.

Updated FAQs available on non-resident telecommuting

Until September 13, 2021, emergency pandemic income sourcing rules were in place for non-resident employees who worked remotely. Those rules were put in place in March 2020. After September 13, compensation earned by non-resident employees will be sourced based on where they actually work, regardless of where they worked prior to the COVID emergency. Take a look at the updated FAQs to learn more about the treatment of non-resident employee compensation after September 13.

Extension for sales, use, meals, room occupancy taxes ending soon

Due dates for these tax types were extended for some taxpayers to November 1, 2021 for returns and payments due March 20, 2020 – June 1, 2021. The extension applied to vendors or property operators with cumulative liability under $150,000 in the 12-month period ending February 29, 2020. Intermediaries were not included in the extension. Separately, penalties were waived for those with more than $150,000 of cumulative liability for the same time periods and tax types if filed and paid by November 1, 2021. Interest continues to accrue.

New return info required for sales, meals and room occupancy filers

A heads up that new reporting will be required in 2022. Taxpayers subject to the new advance payment rules for sales, meals and room occupancy taxes will be asked to report additional information on their returns — including any advance payment made and the amount of any calculated penalty. Sales tax filers will be asked to break down online sales versus in-store sales and meals tax filers will be asked to break down cash sales versus credit card sales. If not already keeping that information for your business, now's a good time to start. It will be required next year.

Jobs, jobs, jobs

DOR is looking for seasonal staff, as we do every year just before filing season. Help us get the word out to qualified candidates. Seasonal staff will respond to taxpayer telephone inquiries received on DOR's tax hotlines; provide taxpayers with technical assistance by explaining state tax laws, rules, regulations, and policies. They may be asked to follow up with taxpayers on delinquent accounts or perform computer research. More information about the position is on the website.

October 15 is the extension date for income tax filings

While there were a number of extensions during the COVID emergency, the October 15 due date for filing personal income tax returns on extension did not change. The income tax return can be filed using software that's available for free to qualified taxpayers, or it can be completed by a tax professional. Payment can easily be made through MassTaxConnect. If you can't make the full payment now, pay as much as you can with the return. After receiving a bill, you can set up a payment plan.

If you missed a prior DOR News issue, you can always find it on the Tax Professionals page.

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