In DOR Updates
A December news update from the Massachusetts Department of Revenue (DOR).
Tax Filing Season Update
Just a reminder that the 2017 draft forms are posted on the website for your review. Software vendors are testing now and you can keep up with that process from the Tax Professionals page or directly here.
2018 MassTaxConnect Estimated Payment Provision
We recently updated MassTaxConnect in response to requests for a modification in the system to accept 2018 estimated payments. However, in the final federal tax bill there is a provision that prevents individuals from claiming an itemized deduction in 2017 for prepayment of 2018 state income tax. DOR will now eliminate the 2018 payment option, given that there is no incentive for choosing the option, and to avoid any confusion for taxpayers.
New Fraud Prevention Program
Tax refund fraud continues to be a concern, particularly as data breaches continue. DOR just launched a new process to give Massachusetts taxpayers more control over their personal tax information. It’s simple enough to participate. A taxpayer signs up by calling DOR customer service or sending an e-message through MassTaxConnect. When a return is filed using the participating taxpayer’s social security number, the taxpayer will be asked for confirmation before a refund is issued. Confirmation is done by answering a few questions online. Once confirmed, the return is processed and any related refund is issued. Signing up now is strongly encouraged. Tax refund thieves file early to get ahead of legitimate taxpayers.
Final Launch of MassTaxConnect
On December 11, MassTaxConnect completed the final of four launches. It was a relatively light liftoff with the addition of six tax types including Abandoned Bottle Deposits, Care & Custody, Controlled Substances, Deeds, Oil Spill Fee and Underground Storage Tank. Most of the new tax types are required to file and/or pay electronically. See E-filing and Payment Requirements.
Payment Voucher Changes
Form 2-ES for estimated payments will continue to be filed by trustees or other fiduciaries, as they have always done. The 2-ES will no longer be filed by Form 3-M or Form 990T-62 taxpayers, they will file instead with the new voucher, Form UBI-ES. Form UBIT-ES has been eliminated and M990-T filers will also file Form UBI-ES.
Enhancement to MassTaxConnect FAQs
Look for a new tab in the FAQs by the end of the year for Dispute Request where you can learn more about the dispute process.