Form 355sc - Massachusetts Security Corporation Excise Return

Filing Requirements

When Is Form 355SC Due?

Corporate estimated tax payments must be made in quarterly in-

stallments of 40%, 25%, 25% and 10% of the estimated annual tax

Form 355SC, together with payment in full of any tax due, must be

liability.

filed on or before the 15th day of the third month after the close of

the corporation’s taxable year. Security corporation filers should re-

Note: New corporations in their first full taxable year with less than

view TIR 04-30, Revised Electronic Filing Requirements, for infor-

10 employees have different estimated payment percentages for

mation regarding the electronic filing mandate.

each installment — 30%, 25%, 25% and 20% respectively.

Note: Under Massachusetts corporate law, all corporations in the

To avoid a possible underpayment penalty on its taxes, a corpora-

Commonwealth are required to file an annual report form with the

tion should, when filing its first payment, estimate its tax to be at

Secretary of State on or before the 15th day of the third month after

least equal to the prior year’s tax. Corporations are required to pay

the close of their fiscal year. Annual Report forms can be obtained by

the lesser of 100% of the corporation’s prior year tax, 90% of the

calling (617) 727-9440. For further information on this requirement,

current year’s tax or 90% of the current year’s tax using the prior

refer to MGL Ch. 156B, sec. 109 and Ch. 181, sec. 4 or call the Sec-

year’s apportionment percentage. If the prior year’s tax was the

retary of State’s Corporate Information Line at (617) 727-9640.

minimum tax, the corporation should make a payment or payments

equal to the minimum tax to safeguard against a possible under-

Can a Security Corporation Get an

payment penalty.

Extension of Time to File?

Note: Any corporation with $1 million or more of federal taxable in-

Yes. An extension of time will be granted for reasonable cause

come in any of its three preceding taxable years (“large corpora-

upon request. To request an extension, a corporation must file Form

tions”) may not use the prior year’s tax except in calculating their

355-7004, Application for Corporate Extension, on or before the nor-

first installment payment. Any reduction in a large corporation’s first

mal due date of the return and pay in full the estimated tax due.

installment caused by using the prior year’s tax must be added to

the corporation’s second installment.

Note: An extension of time to file is not valid if the corporation fails to

pay at least 50% of the total tax liability or $456, whichever is greater,

For more information on corporate estimated taxes, refer to Regula-

through estimated payments or with Form 355-7004.

tion 830 CMR 63B.2.2.

Corporations with $100,000 or more in receipts or sales must sub-

What Is a Valid Return?

mit their extension request, as well as any accompanying payment,

electronically. Also, any corporation making a payment of $5,000 or

A valid return is a return upon which all required amounts have been

more must make the payment using electronic means. See TIR 04-

entered in all appropriate lines on the return. To be valid, an exact,

30 for further information.

signed copy of U.S. Form 1120 or 1120RIC as filed must be avail-

able upon request. Copies of all applicable schedules, forms and

What Are the Penalties for Late Returns?

supplemental statements must also be available.

Security corporation returns which are not filed on or before the due

Supplements enclosed with the return to substantiate or support lines

date are subject to interest and penalty charges. The penalty for

" × 11 " . A separate page need not

must be standard business size, 8

⁄

failure to pay the total payment due with this form is 1% of the tax

be enclosed for each supporting document and several supplements

due per month (or fraction thereof), up to a maximum of 25%. A late

may be typed on one page as space permits.

payment penalty does not apply to amended returns when the

Failure to meet any of the requirements in this section may result in

amount shown on the original return was paid.

a penalty for filing an insufficient return. Such penalty may be as-

The penalty for failure to file a return by the due date is 1% of the

sessed at double the amount of tax due.

tax due per month (or fraction thereof), up to a maximum of 25%.

What if the Taxpayer Is a Fiscal or Short

Any tax not paid on or before the due date — without regard to the

Year Filer?

extension — is subject to interest charges.

File the 2012 return for calendar year 2012 and fiscal years that

Should the Corporation Be Making

began in 2012 and ended in 2013. For a fiscal year return, fill in the

Estimated Tax Payments?

tax year space at the top of page 1. Short year filers should file using

the tax form for the calendar year within which the short year falls. If

All corporations which reasonably estimate their corporate excise tax

the short year spans more than one calendar year, the filer should file

to be in excess of $1,000 for the taxable year are required to make

use the tax form for the calendar year in which the short year began.

estimated tax payments to the Commonwealth. Estimated taxes

If the current form is not available at the time the short year filer

may be paid in full on or before the 15th day of the third month of

must file, the filer should follow the rules explained in TIR 11-12.

the corporation’s taxable year or in four installments according to

the following schedule. Corporations making estimated payments, if

not required to file electronically, must use Form 355-ES.

Corporations with $100,000 or more in receipts or sales must sub-

mit their estimated payments electronically. See TIR 04-30 for fur-

ther information.

Form 355sc - Massachusetts Security Corporation Excise Return - 2012 Page 4

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