Form 355 - Massachusetts Corporation Excise Return

General Information

Major 2012

A corporation organized in Massachusetts is eligi-

the Secretary of State’s Corporate Information Line

ble to use the simpler Form SBC if it met all of the

at (617) 727-9640.

following conditions during the taxable year:

Tax Law Changes

What Is Nexus

◗ had gross receipts or sales, and total income

under $100,000;

The income tax rate for income attributable to

for Massachusetts

Massachusetts has been reduced from 8.25% to

◗ had 100% of its net income taxable in Mass-

8.00%.

achusetts and was not subject to corporate tax in

Corporate Excise

another state;

Who Must File

◗ was not a DISC, an S corporation or a security

Purposes?

corporation;

and Pay Corporate

◗ is not claiming any credits, special deductions

A corporation that owns or uses any part of its

or adjustments against its Massachusetts corpo-

Excise?

capital or other property, exercises or continues its

rate excise; and

charter or is qualified to, or is actually doing busi-

◗ does not own 50% or more of the voting stock of

ness in Massachusetts has nexus with the Com-

The purpose of the corporate excise is to require

another corporation and did not have 50% or more

monwealth and must pay a corporate excise. The

payment for the right granted by the laws of the

of its voting stock owned by another corporation.

term “doing business” as defined in M.G.L. Ch. 63,

Commonwealth to exist as a corporation and for

sec. 39 includes:

the enjoyment under the protection of the Com-

The Department of Revenue also has the follow-

◗ the maintenance of a place of business;

monwealth’s laws of the powers, rights, privileges

ing tax forms to meet the unique filing needs

and immunities derived by reason of the corporate

of combined filers, security corporations and S

◗ the employment of labor;

form of existence and operation. The corporate ex-

corporations.

◗ the buying, selling or procuring of services or

cise is due and payable when any of the following

Corporations which are participating in a combined

property;

conditions are met:

report of their net income to Massachusetts must

◗ the execution of contracts;

◗ the corporation actually does business within

file Form 355U. Beginning in 2011, most com-

◗ the exercise or enforcement of contract rights;

the Commonwealth;

bined report filers will also pay the non-income

measure of excise when filing the 355U; combined

and

◗ the corporation exercises its charter within the

report filers are not required to also file a Form

◗ each and every act, power, right, privilege, or

Commonwealth;

355 unless their taxable year ends at a different

immunity exercised or enjoyed in the Common-

◗ the corporation owns or uses any part of its

time than the taxable year of the combined report.

wealth, as an incident to or by virtue of the powers

capital, plant or other property in the Common-

See the instructions for the Registration Section,

and privileges acquired by the nature of such orga-

wealth; or

question number 5 for further information.

nizations, as well as, the buying, selling or procur-

◗ the corporation owns and/or rents real or tan-

Corporations engaged exclusively in buying, sell-

ing of services or property.

gible personal property as a lessor in Massachu-

ing, dealing in or holding securities on their own

Public Law (PL) 86-272 excludes from state net

setts even without having a usual place of busi-

behalf and not as brokers must file Form 355SC.

income-based taxation those interstate activities

ness here.

S corporations which are incorporated under the

constituting mere solicitation of orders for sales of

Corporations which must file and pay corporate ex-

laws of the Commonwealth or S corporations doing

tangible personal property filled by shipment or de-

cise include any corporation which:

business in Massachusetts but incorporated else-

livery from a point outside Massachusetts after

◗ is organized under, or subject to, Chapters 156,

where should file Form 355S.

orders are sent outside the state for approval or

156A, 156B or 180 of Massachusetts General

rejection (15 IRC sec. 381(a)).

If a corporation files Form 355, 355U, 355S or

Laws (M.G.L.); or

355SC, the return must be submitted electroni-

The following are activities that ordinarily fall

◗ has privileges, powers, rights or immunities not

cally provided that gross revenues from all

within the scope of “solicitation” under PL 86-272:

sources are $100,000 or greater. Failure to sub-

possessed by individuals or partnerships.

◗ activities including advertising related to gener-

mit the return electronically may result in a

The following corporations are not obligated to file:

ating retail demand for the products of a manu-

penalty of $100. For further information on elec-

facturer or distributor by promoting the products

◗ corporations organized under the provision of

tronic filing requirements, see TIRs 04-30 and

to retailers who order the products from a whole-

M.G.L. Ch. 157, sec. 10.

05-22.

saler or other middleman;

Corporations amending an originally filed corpo-

◗ carrying samples only for display or for distrib-

Which Form

ration excise return with respect to federal net in-

ution without charge or other consideration;

come should file Form CA-6, Application for Abate-

Should Be Filed?

◗ owning or furnishing automobiles to sales rep-

ment/Amended Return.

resentatives, provided that the vehicles are used

Note: Under Massachusetts law, all corporations

exclusively for solicitation purposes;

Businesses which are incorporated under the

registered in the Commonwealth are required to

laws of the Commonwealth or businesses doing

◗ passing inquiries and complaints on to the

file an Annual Report form with the Secretary of

business in Massachusetts but incorporated else-

home office;

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

where should file Form 355.

after the close of their fiscal year. Annual Report

◗ incidental and minor advertising;

forms can be obtained by calling (617) 727-9440.

◗ checking customers’ inventories for reorder only;

For further information on this requirement, call

Form 355 - Massachusetts Corporation Excise Return - 2012 Page 3

Related Articles

Related forms

Related Categories