Form 355 - Massachusetts Corporation Excise Return

Line by Line Instructions

to apportion its income based on its own separate

Schedule F must be completed and the tax must be

fore, schedule instructions precede the instructions

activities (i.e., the corporation is taxable on its in-

paid according to the statutory three-factor formula.

for the excise calculation section. Use the whole

come in another state without regard to the activ-

However, alternative treatment may be requested

dollar method.

ities of its other combined group members) must

and a refund will be issued if such treatment is

also complete Schedule F without regard to the

granted by the Commissioner of Revenue. For

Schedule A.

combined reporting provisions in order to deter-

further information on alternative apportionment,

mine its non-income measure. If a corporation

see M.G.L. Ch. 63, sec. 42 or Regulation 830

Balance Sheet

would not be allowed to apportion its income

CMR 63.42.1.

based on its own separate activities, no Schedule F

Enter the closing amounts for the taxable year cov-

Line 8

is required and the corporation will use an appor-

ered by this return. Once the corporation’s balance

Any corporation undergoing a voluntary dissolu-

tionment percentage of 100% in determining the

sheet is completed, it will be easier to complete

tion should notify the DOR within 30 days of the

non-income measure. Such corporations include

subsequent schedules.

vote to dissolve by writing to: Massachusetts De-

all of their property, payroll and sales, including

partment of Revenue, Customer Service Bureau,

those attributes used to apportion income for pur-

Line 1a

PO Box 7010, Boston, MA 02204.

poses of a combined report, in completing their

Enter here the book value of all buildings. A portion

stand alone Schedule F for this purpose. Corpora-

of the cost attributable to buildings under construc-

Line 14

tions required to file Schedule F-2 (i.e., section 38

tion and reported on the corporation’s books as

If your corporation has undergone a federal audit

manufacturers with more than 25 employees and

construction in progress (CIP) is considered real

for some prior year, you must report any changes

mutual fund sales corporations) must submit

estate for purposes of the property measure of the

to Massachusetts on Form CA-6, Application for

schedule F-2 with their Form 355 or 355S.

corporate excise and must be reported in line 1a.

Abatement/Amended Return. You must report any

Schedule E is not required unless the taxpayer has

Enter 100% of the corporation’s real estate CIP

federal audit changes within three months after the

income from a source other than a unitary busi-

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

final determination of the correct taxable income

ness that is to be reported on a separate company

by the IRS. Otherwise, you will be subject to a pen-

Line 1j

basis and also has a tax year that is different than

alty. If the federal change results in less tax due to

The value of any certified solar/wind units for

the combined group’s tax year. In such cases, the

Massachusetts than was assessed or paid, you

which a deduction is claimed this year should be

corporation is to report on Form 355 or 355S,

may apply for abatement under the federal change

entered here. Amounts of certified industrial waste

Schedule E only the income that is not included in

rules within one year of the final federal determina-

and/or air pollution treatment facilities and certi-

the combined report and is to allocate or appor-

tion. Answering line 14 does not relieve the corpo-

fied solar/wind deductions claimed in any prior

tion such income without regard to the combined

ration from this filing obligation.

year should be included. In order to be eligible for

reporting provisions.

this deduction, property must be certified by the

Line 16

Corporations taking part in a combined report do

appropriate state agencies and copies of such cer-

not complete Schedule CR. The total of credits

If the corporation is deducting intangible or interest

tificates must be available upon request. See in-

taken by such corporations against the non-in-

expenses, answer Yes. Complete Schedule ABI,

structions for Schedule E, line 24.

come measure of excise is entered directly on line

Exceptions to the Add Back of Interest Expense,

7 of the tax calculation. The amount of credit allow-

and/or Schedule ABIE, Exceptions to the Add Back

Line 1k

able to the taxpayer and the allocation of credits

of Intangible Expenses to claim the deduction.

Enter here the value of all tangible property re-

between the income and non-income measures

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

Line 17

is calculated on schedules attached to the com-

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

If the corporation must explain any inconsistent

bined report. Schedules that are required to cal-

estate CIP accumulation. For further information,

filing positions made on the return, answer yes

culate individual credits should be submitted with

see Department of Revenue Directive 02-11.

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

the combined report if the credit is calculated on

ther information.

an aggregated basis.

Line 2b

Enter here the value of inventory that is exempt

Line 18

Line 6

from the tangible property measure of the excise.

Corporations that are doing business in Massachu-

Domestic and foreign insurance mutual holding

An example of exempt inventory is merchandise of

setts but are exempt from the income measure of

companies are subject to the corporate excise as

foreign origin imported and immediately placed in

excise pursuant to federal Public Law 86-272

business corporations but are not required to pay

a federally bonded warehouse. Merchandise of do-

claim the exemption here by checking “Yes.”

the portion of tax based on the value of their tan-

mestic origin is not exempt from the tangible prop-

gible property or net worth (i.e., the non-income

These corporations remain subject to the non-

erty measure of the excise. A schedule listing the

measure of the excise). The corporate excise

income measure of excise or the minimum ex-

components of any entry in line 2b must be avail-

tax for an insurance mutual holding company is

cise, whichever is greater. Such corporations are

able upon request.

the greater of 8.00% of its net Massachusetts in-

not required to submit Schedule E but must com-

come in Massachusetts or the minimum excise

Line 12

plete Schedule F for the purpose of determining

tax of $456.

their non-income measure of excise.

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

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

Line 7

Excise Calculation

ration in accordance with IRC sec. 1504. Include

If the corporation is requesting alternative appor-

investments in capital stock. Advances should in-

tionment under M.G.L. Ch. 63, sec. 42, answer yes

clude payments in the nature of capital contribu-

In order to complete the excise calculation, all ap-

in line 7 and enclose Form AA-1. The return and

tions. Do not include loans or other receivables.

propriate schedules must be filled out first. There-

Form 355 - Massachusetts Corporation Excise Return - 2012 Page 9

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