Looking for a Massachusetts Form 355u Templates? Download it for free!

Question 6. If the group or any member is deducting an interest expense paid or accrued to a

related entity and that expense is not eliminated in the combined report when determining the

combined group’s taxable income, check “Yes”. Enclose one or more Schedules ABI supporting

the claim of deduction.

Question 7. If the group or any member is deducting an intangible expense paid or accrued to a

related entity, (including but not limited to an embedded royalty) and that expense is not

eliminated in the combined report when determining the combined group’s taxable income, check

“Yes.” Enclose one or more Schedules ABIE supporting the claim of deduction.

Question 8. If there is an entity or corporation that owns more than 50% of the voting stock of

any member of the combined group that is not being included in the combined group, irrespective

of that parent’s place of incorporation or formation, check “Yes.”

Question 9. In general, when a corporation that was not previously a Massachusetts taxpayer

enters or otherwise is first included in a combined group the basis of the various assets of such

member will be the basis of such assets for federal income tax purposes.

However, the principal reporting corporation of a combined group may elect to determine and

apply a Massachusetts-adjusted basis for all assets of every member of the combined group that

was not previously a Massachusetts taxpayer, including any non-taxpayer corporation that

subsequently enters or otherwise is included in the combined group, provided that the corporation

must possess and maintain adequate records to demonstrate the appropriate Massachusetts

adjusted basis for all such assets. This election, which is irrevocable, may be made on this line. If

a taxpayer is unable to reasonably document basis adjustments pursuant to this election for any

member of the group, this election will be treated as void. See 830 CMR 63.32B.2 (6) (d).

Question 10. Answer “Yes” if any member is under audit by the I.R.S.

Question 11. If any member of the group is reducing its excise by utilizing a Massachusetts film

credit under c. 63, § 38X, check “Yes.”

Question 12. If any member of the group is reducing its excise by utilizing a Massachusetts life

sciences credit under c. 63, §§ 31M, 38U or 38W, check “Yes.”

Question 13. If one or more members of the group have undergone a federal audit that has

resulted in a final determination, including any settlement or compromise, of a change to taxable

income of any person subject to tax under c. 63, the changes must be reported to the

commissioner within 2 months. This requirement also extends to changes in federal credits, but

only if the change in the credit has an effect on the calculation of the tax imposed under c. 63.

Enter the year (YYYY) of the most recent tax period for which such a change was received from

the I.R.S.

Question 14. If any member of the group has filed Form 8275, Form 8275-R or Form 8886 with

its federal tax return; enter the number of disclosures made by all members of the group. Note

that Form 8275 and 8275-R allow for the disclosure of multiple issues on the same form. A

taxpayer seeking to make adequate disclosure of an item for purposes of avoiding the

Massachusetts penalty imposed under M.G.L. c. 63, s. 35A must disclose the relevant facts

directly to the Department. See TIR 06-05.

Question 15. If any member of the group is submitting a Massachusetts Schedule TDS with this

return, enter the number of disclosures made by all members of the group. A taxpayer seeking to

make adequate disclosure of an item for purposes of avoiding the Massachusetts penalty

imposed under M.G.L. c. 63, s. 35A must disclose the relevant facts directly to the Department.

See TIR 06-05.

Question 16. A “taxable member” is a corporation included in the combined group that is taxable

on its Massachusetts apportioned share of the combined group’s taxable income; each taxable

member must file a Schedule U-ST with this return. Enter the total number of such taxable

members on line 16.

Question 17. Enter the number of members subject to the non-income measure only.

Instructions For Form 355u - Income Excise For Taxpayers Subject To Combined Reporting - 2012 Page 3

Related Articles

Related forms

Related Categories