Business Tax News Sheet - November 2004 - Massachusetts Department Of Revenue printable pdf download

Massachusetts Department of Revenue

Business Tax News - November 2004

At the Massachusetts Department of Revenue (DOR), we are enhancing our services to provide taxpayers with

the online tools necessary to meet tax obligations. These services are available through our website,

, 24 hours a day. E-filing continues to be the quickest and most accurate means of

filing/paying state taxes as well as reporting wage and new hire information to DOR. The latest updates are as

follows:

E-FILE MANDATES:

Corporate E-filing: Beginning January 1, 2005, corporations with more than $100,000 in gross receipts, sales,

or income from all sources must transmit all returns and tax payments using electronic means. Failure to comply

with this e-file mandate will result in a $100 penalty for each occurrence. DOR encourages corporations below

the mandatory threshold that do not e-file to employ forms with 2-Dimensional (2-D) bar coding. Please visit our

website for more details on electronic filing requirements (TIR 04-30).

Business E-filing: Businesses that collect at least $10,000 annually in the aggregate of the following business

taxes must file and pay electronically: Withholding; Sales/Use tax; Room Occupancy tax and/or Sales tax on

Meals. This may be accomplished through WebFile for Business (WFB). Failure to comply will result in a $100

penalty for each paper check or tax return filed. For information on registering for WFB, please visit our website.

Electronic Wage Reports: Effective the first quarter of 2005, employers with 50 or more employees must submit

their wage reports electronically or via magnetic media. Electronic wage reports may be submitted through WFB.

DOR encourages employers with fewer than 50 employees to either e-file or enter wage data directly into WFB

using the Online Wage Reporting Option.

NEW PROGRAMS:

Online Certificate of Good Standing: DOR recently rolled out a new online Certificate of Good Standing

application. Taxpayers and their authorized representatives can use this interactive program to apply for and

obtain certificates in as little as three days. This is an invaluable tool for those with pending sales, refinancing or

other business reasons that necessitate quick proof that no taxes are owed to the Commonwealth. Please visit

our website for additional details or call the Customer Service Bureau at (617) 887-MDOR or toll-free in

Massachusetts at (800) 392-6089.

Online Abatement Application: Another exciting tool is DOR’s online application for abatement/amended

returns, which allows businesses to view and amend Sales, Withholding, Room Occupancy and Meals tax

returns. Requests for penalty waivers can also be made through this application.

DOR UPDATES:

Business Telefile: Please listen carefully to the menu choices when filing and/or paying state taxes via our

Business Telefile program. Some taxpayers are successfully paying the tax they owe but are neglecting to file

their state tax returns. This is a two-step process: first, file the state tax return and then pay any tax due.

New Hires: As you are aware, all Massachusetts employers are required to report the names of any new hires

and independent contractors within 14 days of the date of hire to DOR. The quickest and most accurate means of

reporting new hire information to DOR is through our website. From our homepage, click on Business

Information, then the New Hire Reporting Quick Link.

Child Support Enforcement Electronic Funds Transfer (EFT) Program: Employers who withhold child

support payments for 5 or more employees/independent contractors and any employer cited by DOR for a history

of bounced checks or other compliance issue must use EFT to remit child support withheld from employees’

wages. All others are encouraged to participate in the EFT program on a voluntary basis. More information is

available through DOR’s website or by calling (617) 471-6877.

Business Tax News Sheet - November 2004 - Massachusetts Department Of Revenue