Form 355s - Massachusetts S Corporation Excise Return

Line by Line Instructions

tionment see M.G.L. Ch. 63, sec. 42 or Regulation

Schedule A

entered in line 12a, Schedule A-1, Investments in

830 CMR 63.42.1.

Subsidiaries, must be completed.

Balance Sheet

Line 8

Line 12b

Enter the closing amounts for the taxable year cov-

Any corporation undergoing a voluntary dissolu-

Enter in line 12b the value of capital stock invest-

ered by this return. Once the corporation’s balance

tion should notify the DOR within 30 days of the

ments with less than 80% ownership and also any

sheet is completed, it will be easier to complete

vote to dissolve by writing to: Massachusetts De-

other investment entity such as a partnership.

subsequent schedules.

partment of Revenue, Customer Service Bureau,

Line 14

PO Box 7010, Boston, MA 02204.

Line 1a

If the reserve for bad debt exceeds 2% of accounts

Enter here the book value of all buildings. A portion

Line 15

receivable, a complete explanation to enable a re-

of the cost attributable to buildings under construc-

If your corporation has undergone a federal audit

view and determination of the proper amount al-

tion and reported on the corporation’s books as

for some prior year, you must report any changes

lowable must be available upon request.

construction in progress (CIP) is considered real

to Massachusetts on Form CA-6, Application for

estate for purposes of the property measure of the

Line 15

Abatement/Amended Return. You must report any

corporate excise and must be reported in line 1a.

Enter the amount from Schedule A-2, Intercompany

federal audit changes within three months after

Enter 100% of the corporation’s real estate CIP

Receivables, line 29.

the final determination of the correct taxable in-

costs, less 15% of the current year’s accumulation.

come by the IRS. Otherwise, you will be subject to

Line 17

a penalty. If the federal change results in less tax

Line 1j

Enter here the value of any assets not included in

due to Massachusetts than was assessed or paid,

The value of any certified solar/wind units for

lines 1 through 16. Examples include, but are not

you may apply for abatement under the federal

which a deduction is claimed this year should be

limited to, goodwill and company patents.

change rules within one year of the final federal

entered here. Amounts of certified industrial waste

determination. Answering line 14 does not relieve

and/or air pollution treatment facilities and certified

Line 19a

the corporation from this filing obligation.

solar/wind deductions claimed in any prior year

Enter the value of mortgages on Massachusetts real

should be included. In order to be eligible for this

Line 16

estate, motor vehicles, machinery owned by a cor-

deduction, property must be certified by the appro-

poration which is not classified as a manufacturing

If the corporation is deducting intangible or interest

priate state agencies and copies of such certificates

corporation, and other tangible personal property

expenses, answer yes. Complete Schedule ABI,

must be available upon request. See instructions

located in Massachusetts and subject to local tax-

Exceptions to the Add Back of Interest Expense,

for Schedule E, line 24.

ation. Mortgages do not include conditional sales,

and/or Schedule ABIE, Exceptions to the Add Back

pledges or other types of security interest.

of Intangible Expenses to claim the deduction.

Line 1k

Enter here the value of all tangible property re-

Line 22

Line 17

ported on the corporation’s books as CIP. In addi-

Enter the amount from Schedule A-3, Intercom-

If the corporation must explain any inconsistent

tion, enter here 15% of the current year’s real

pany Payables, line 29.

filing positions made on the return, answer yes

estate CIP accumulation. For further information,

and enclose Schedule TDS. See TIR 06-5 for fur-

see Department of Revenue Directive 02-11.

Schedules B, C & D

ther information.

Line 2b

Line 18

Tangible or Intangible Classification

Enter here the value of inventory that is exempt

Corporations that are doing business in Massachu-

and Calculation of Non-Income

from the tangible property measure of the excise.

setts but are exempt from the income measure of

Measure

An example of exempt inventory is merchandise

excise pursuant to federal Public Law 86-272

of foreign origin imported and immediately placed

Schedules B, C and D are used to calculate the

claim the exemption here by checking “Yes.”

in a federally bonded warehouse. Merchandise of

non-income measure of the Massachusetts cor-

These corporations remain subject to the non-in-

domestic origin is not exempt from the tangible

porate excise. Schedule B is used to determine

come measure of excise or the minimum excise,

property measure of the excise. A schedule listing

whether a corporation is a tangible or intangible

whichever is greater. Such corporations are not

the components of any entry in line 2b must be

property corporation. Once determined, tangible

required to submit Schedule E but must complete

available upon request.

property corporations must complete Schedule C

Schedule F for the purpose of determining their

(and omit Schedule D) and intangible property cor-

Line 12

non-income measure of excise.

porations must complete Schedule D (and omit

In order to be a subsidiary, the parent must own at

Schedule C). Net book values should be used in

Excise Calculation

least 80% or more of the voting stock of a corpo-

completing all schedules.

ration in accordance with IRC sec. 1504. Include

investments in capital stock. Advances should in-

Schedule B

In order to complete the excise calculation, all ap-

clude payments in the nature of capital contribu-

propriate schedules must be filled out first. There-

Schedule B is used to calculate whether a corpo-

tions. Do not include loans or other receivables.

fore, schedule instructions precede the instructions

ration is a tangible or intangible property corpora-

for the excise calculation section. Use the whole

tion. Beginning in 2004, taxpayers no longer have

Line 12a

dollar method.

the option of calculating the non-income measure

Enter in line 12a the total of capital stock and eq-

as a domestic or foreign corporation. To reflect this

uity contributions of subsidiary corporations 80%

legislative change, both Schedule B and D have

or more owned. If an amount other than “0” is

been reduced in length. If line 15 is 10% or greater,

Form 355s - Massachusetts S Corporation Excise Return - 2012 Page 10

Related Articles

Related forms

Related Categories