Form 355 - Massachusetts Corporation Excise Return

General Information

Conservation Land

measure of the excise only. Schedules should be

What is a Proper

available to explain any prorating computations.

Tax Credit

Return?

A corporation may never pay less than the $456

minimum excise on a return, and this amount can

never be prorated as Massachusetts law makes no

Effective for tax years beginning on or after Janu-

A proper return is a return upon which all required

provision for the proration of the minimum excise.

ary 1, 2011, a credit is allowed for qualified dona-

amounts have been entered in all appropriate lines

tions of certified land to a public or private con-

on all forms. Data sheets, account forms or other

What if the

servation agency. The credit is equal to 50% of

schedules must be available to explain amounts

the fair market value of the qualified donation. The

entered on the forms. Referencing lines to enclo-

amount of the credit that may be claimed by a tax-

sures in lieu of entering amounts onto the return

Taxpayer Is a Fiscal

payer for each qualified donation cannot exceed

is not sufficient.

$50,000. The credit is refundable but not transfer-

or Short Year Filer?

An exact copy of U.S. Form 1120, including all

able. The certification process is conducted by the

applicable schedules and any other documenta-

Executive Office of Energy and Environmental Af-

tion required to substantiate entries made on this

File the 2011 return for calendar year 2011 and fis-

fairs (EEA). EEA has promulgated a regulation,

return, must be made available to the Department

cal years that began in 2011 and ended in 2012.

301 CMR 14.00, entitled Conservation Land Tax

of Revenue upon request.

For a fiscal year return, fill in the tax year space at

Credit, which sets forth criteria for authorizing and

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

certifying the credit. See also, 830 CMR 62.6.4,

Should the Corpo-

the tax form for the calendar year within which the

entitled Conservation Land Tax Credit, promul-

short year falls. If the short year spans more than

gated by DOR to explain the calculation of the al-

one calendar year, the filer should file use the tax

ration Be Making

lowable credit.

form for the calendar year in which the short year

began. If the current form is not available at the

Estimated Tax

Are Combined

time the short year filer must file, the filer should

follow the rules explained in TIR 11-12.

Payments?

Reports Sometimes

When Are

All corporations which reasonably estimate their

Required?

corporate excise to be in excess of $1,000 for the

Returns Due?

taxable year are required to make estimated tax

Yes. If two or more corporations under common

payments to the Commonwealth. Estimated taxes

control are engaged in a unitary business, any

Corporate excise returns, together with payment in

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

such corporations that are taxed on their income

full of any tax due, must be filed on or before the

the third month of the corporation’s taxable year

in Massachusetts must determine their income

15th day of the third month after the close of the

or in four installment payments according to the

measure of excise by filing a combined report,

taxable year, calendar or fiscal.

schedule below.

Form 355U. This requirement applies regardless

An extension of time for filing returns will be

◗ 40% of the estimated tax due for the year is

of whether or not the corporations file a consoli-

granted for reasonable cause upon request. In or-

due on the 15th day of the 3rd month of the tax-

dated federal return. See 830 CMR 63.32B.2.

der to request an extension, a corporation must file

able year;

The non-income measure of excise for members

Form 355-7004 on or before the normal due date

◗ 25% of the estimated tax due for the year is

of a combined group is still determined on a sep-

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

due on the 15th day of the 6th month of the tax-

arate company basis but for tax years beginning

Corporations with $100,000 or more in receipts

able year;

on or after January 1, 2011 this is calculated on

or sales must submit their extension request, as

schedules attached to the Form 355U. A separate

◗ 25% of the estimated tax due for the year is

well as any accompanying payment, electroni-

return (Form 355 or Form 355S, as appropriate) is

due on the 15th day of the 9th month of the tax-

cally. Also, any corporation making an extension

only required if the corporation’s federal taxable

able year;

payment of $5,000 or more must make the pay-

year ends at a different time than the taxable year

◗ 10% of the estimated tax due for the year is

ment using electronic means. See TIR 04-30 for

of the combined report.

due on the 15th day of the 12th month of the tax-

further information.

able year.

What If a

Under certain circumstances, if a payment is not

Corporations with $100,000 or more in receipts or

required to be submitted with the extension re-

sales must submit their estimated payments elec-

quest, the requirement to file the extension may be

Corporation’s

tronically. See TIR 04-30 for further information.

waived. For further information, see TIR 06-21.

Taxable Year Is Less

Note: New corporations in their first full taxable

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

year with less than 10 employees have different es-

corporation fails to pay at least 50% of the total

timated payment percentages — 30%, 25%, 25%

tax liability or the minimum tax of $456, which-

Than 12 Months?

and 20% respectively.

ever is greater, through estimated payments or with

Form 355-7004.

To avoid a possible underpayment penalty on its

Corporations whose taxable year is less than twelve

taxes, a corporation should, when making its first

Any tax not paid on or before the due date — with-

calendar months may determine their excise by

payment, estimate its tax to be at least equal to the

out regard to the extension — shall be subject to

prorating calendar months for the non-income

prior year’s tax. If the prior year’s tax was the min-

an interest charge.

Form 355 - Massachusetts Corporation Excise Return - 2012 Page 7

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