Form 355 - Massachusetts Corporation Excise Return

Line by Line Instructions

◗ a tax of $2.60 per $1,000 on taxable Massachu-

required schedules showing the calculation of the

Penalty for Late Payment

setts tangible property or taxable net worth, which-

individual credits taken on Form 355.

The penalty for failure to pay the total payment

ever applies. If the return is for a short taxable year,

due with this form is 1% of the tax due per month

Line 9

the tangible property or taxable net worth should

(or fraction thereof), up to a maximum of 25%.

If the corporation is a member of a combined

be prorated; and

Line 25

group filing a combined report, its income mea-

◗ a tax of 8.00% on income attributable to

sure of excise is paid with Form 355U. Enter the

Any corporation which fails to pay its tax when due

Massachusetts.

amount from Schedule U-ST, line 41. Corpora-

will be subject to interest charges on the unpaid

The law also provides for a minimum excise of

tions which are not members of a combined

balance.

$456.

group enter zero.

Line 26

Line 3

Line 10

Enter the total payment due. Checks for this amount

Enter the amount from Schedule E, line 27, if you

Corporations taxable under M.G.L. Ch. 63, sec.

should be made payable to the Commonwealth of

had taxable income (a positive number). If the

32D and 39 are subject to a minimum excise of

Massachusetts. Checks should have the corpora-

amount in Schedule E, line 27 is a loss, enter “0.”

$456. If the corporation is a member of a com-

tion’s Federal Identification number written in the

bined group, it must file a combined report and

lower left corner.

Line 5

its income measure of excise is determined on

An addition to tax applies for taxpayers who have

Privacy Act Notice

Schedule U-ST, line 41 and not on Form 355 or

deferred the gain, and the tax associated with that

355S. If the member's own income measure of

The Privacy Act Notice is available upon request or

gain, on certain installment sales. This addition to

excise from Schedule U-ST, line 41 (as referenced

tax is measured by an interest charge on the tax

on line 9 above) is greater than or equal to $456,

Signature

that has been deferred.

enter zero on line 10. Otherwise, subtract the

When the form is complete, it must be signed by

amount on line 9 from $456 and enter the result

Include in line 5 an additional tax amount repre-

the treasurer or assistant treasurer or, in their ab-

on line 10. If the corporation is not part of a com-

senting an interest charge on the deferred tax on

sence or incapacity, by any other principal corpo-

bined group, enter $456 on line 10.

gain from certain installment sales with a sales

rate officer. The Social Security number of the

price over $150,000 if you are not a dealer and the

Line 12

signing officer should be entered next to the date

aggregate face amount of installment obligations

Any corporation that wishes to contribute any

the return was signed. If you are filing as an

arising during the tax year and outstanding as of

amount to the Natural Heritage and Endangered

authorized delegate of the appropriate corporate

the close of the tax year exceeds $5 million. For

Species Fund may do so on this form. This

officer, check the box in the signature section and

more information see G.L. c. 62C, sec. 32A (a)

amount is added to the excise due. It increases

enclose a copy of Massachusetts Form M-2848,

and I.R.C. sec. 453A (a)–(c).

the amount of the corporation’s payment or re-

Power of Attorney. The form must also be signed

Also include in line 8 an additional tax amount

duces the amount of its refund.

by any paid preparer of the form. The form should

representing an interest charge on the deferred

be mailed to: Massachusetts Department of Rev-

gain from the installment sale of time shares and

Line 17

enue, PO Box 7005, Boston, MA 02204.

residential lots, if the sale meets one of the follow-

Enter the amount of any withholding tax from

ing criteria: 1) the sale is of a timeshare right for 6

pass-through entities. This is the amount of with-

Schedule M-1.

weeks or less; 2) the sale is for the recreational

holding from all Schedules 3K-1, lines 33 and 35

use of specified campgrounds; or 3) the sale is for

that the corporation has received.

Federal

a residential lot and neither the dealer nor some-

one related to the dealer is obligated to make any

Line 18

Reconciliation

improvements on the lot. For more information

If the corporation is claiming a refundable credit,

see G.L. c. 62C, sec. 32A (b) and I.R.C. sec.

enter the amount from Schedule RF, line 6.

453(l)(2)(B).

Schedule M-1 reports the taxpayer’s current year

Lines 24

net income and expenses as they are or would be

If you are a partner in a partnership or a share-

shown on U.S. Form 1120, lines 1 through 28, in

The following penalties may apply:

holder in an S corporation, the entity is required to

calculating gross income under the provisions of

send you the information you need to calculate the

Penalty for Underpayment of Estimated Tax

the U.S. IRC and the deductions allowable in cal-

addition to tax under this provision.

An additional charge may be imposed on corpora-

culating net income under the code.

To the extent practicable, Massachusetts follows

tions which underpay their estimated taxes or fail

Corporations reporting their income on Form

federal income tax rules in determining the de-

to pay estimated taxes. Form M-2220, Underpay-

355U as part of a combined group file Schedule

ferred gain from installment sales subject to the

ment of Massachusetts Estimated Tax by Corpora-

U-M with that combined report and are not re-

interest-charge addition to tax. For more informa-

tions, should be used to compute any underpay-

quired to file Schedule M-1. All other corporations

tion, visit DOR’s website at

ment penalty.

filing Form 355 or 355S and subject to the in-

and Internal Revenue Service Publication 537.

Penalty for Failure to File

come measure of excise must complete Schedule

The penalty for failure to file a tax return by the due

Line 6

M-1. (S corporations with receipts of less than $6

date is 1% of the tax due per month (or fraction

million on an annualized basis, and therefore not

Corporations which are not members of a com-

thereof), up to a maximum of 25%.

required to complete Schedule E, do not complete

bined group filing a combined report enter the

Schedule M-1.)

amount from Schedule CR, line 15 and enclose any

Form 355 - Massachusetts Corporation Excise Return - 2012 Page 15

Related Articles

Related forms

Related Categories