Form 9m 3/01 - Taxpayer Advisory Bulletin - State Of Massachusetts (Page 12 of 12) in pdf

PRSRT STD

U.S. POSTAGE

PAID

COMMONWEALTH OF

MASSACHUSETTS

Commonwealth of

Massachusetts

Department of Revenue

51 Sleeper Street

Boston, Massachusetts 02210

New Publications Describe Improved Audit Programs

In January the Department of Revenue’s

Rather than relying on paper records and

gram to Simplify the Audit Process for

(DOR) Audit Division released three new

Business Taxpayers – Sales/Use Tax to

manual input, CAATs works directly from

publications that provide detailed de-

explain the process and requirements in

electronic data supplied by the taxpayer.

scriptions of the various audit programs

greater detail.

DOR can quickly and accurately deter-

available to business taxpayers. The pro-

mine a taxpayer’s liability using a so-

Businesses must be registered with the

grams are designed to reduce adminis-

phisticated sampling program, as the

Department as sales/use tax vendors in

trative costs, encourage cooperation and

computer handles the bulk of the data

order to participate in these audit pro-

simplify the audit process for both the tax-

entry, analysis, report generation and file

grams. Please contact DOR’s Audit Divi-

payer and DOR.

management.

sion at (617) 887-6809 for more informa-

Direct Payment Permits

Managed

tion about direct payment permits and

The direct payment permit program is

managed compliance agreements; or

Compliance

Commonwealth of Massachusetts

Department of Revenue

Audit Division

geared toward larger businesses that

(617) 887-5026 for information about

Agreements

Managed

have computerized record-keeping and

computer-assisted audit techniques.

Larger busi-

Compliance

expect to remit sales taxes of $50,000 or

nesses

that

Agreements

more per year. Under the program, busi-

have comput-

A Program to Simplify the Audit

nesses that hold direct payment permits

erized records

Process for Business Taxpayers —

Taxpayer Advisory Bulletin

Sales/Use Tax

pay sales tax directly to DOR, instead of

also may bene-

to the vendor at the time of purchase.

fit by entering

This publication is designed to keep taxpayers, tax

The direct payment permits allow tax-

into a Man-

practitioners and the news media informed of devel-

payers to self-accrue more of their tax

opments, problems, answers to questions and mat-

Frederick A. Laskey

January 2001

aged Compli-

Commissioner

ters of general interest about Massachusetts tax law

liability and reduce paper work and

ance Agree-

regulation, policy, and procedures. It is not designed

bookkeeping. Direct Payment Permit: A

ment (MCA). An MCA is an up-front,

to address complex issues in detail. Nothing contained

Program to Simplify Sales/Use Tax Ac-

binding agreement between a business

herein supersedes, alters or otherwise changes pro-

crual and Collection provides an overview

and DOR that details simplified proce-

visions of the Massachusetts General Laws, Mass-

of the program and details how direct

dures by which the business calculates

achusetts Department of Revenue’s Regulations, Tech-

payment permits work and how to be-

nical Information Releases or Letter Rulings.

and remits unpaid sales/use tax directly

come a direct payment permit holder. The

to the Department for a set period of

publication includes an application form

time. Using the sampling methods avail-

Frederick A. Laskey

and instructions.

able through CAATS, the taxpayer and

Commissioner of Revenue

DOR analyze and determine what trans-

Computer-Assisted Audit Techniques

Ellen Cummings

actions are to be covered under the

The Computer-Assisted Audit Tech-

Editor

agreement and at what rate the transac-

niques: Using Computers to Simplify Tax

tions are to be taxed. The taxpayer

Audits booklet includes an explanation of

Copies of all forms, public written statements and

agrees to monitor the accuracy of its

publications referred to in this bulletin are avail-

the most common methods of computer-

agreement and in return DOR agrees to

able upon request from the Publishing Services

ized audit, application forms and instruc-

forego a comprehensive audit of books

Office (unless otherwise indicated) at PO Box 9481,

tions. By opting to use Computer-Assisted

Boston, MA 02205-9481, Tel. (617) 626-2800. Vari-

and records — provided the taxpayer’s

Audit Techniques (CAATs), businesses

ous publications also are available through DOR’s

liability falls within the pre-determined

can reduce the time and personnel re-

Fax on Demand system (617-887-1900) and web-

parameters. DOR has published Man-

sources required to complete an audit.

site ( ).

aged Compliance Agreements: A Pro-

9M 3/01 GC01C12

Publication of this Document Approved by Philmore Anderson III, State Purchasing Agent

Est. Cost Per Copy $.10

Form 9m 3/01 - Taxpayer Advisory Bulletin - State Of Massachusetts Page 12

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