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News & Updates from the MSCPA’s Government Affairs Team
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We're working to keep you informed in a world that changes by the minute. If you have anything you'd like to share, or if we can help you in any way, please reach out to Zach Donah at zdonah@mscpaonline.org or 617.303.2411, or Larry Liuzzo at lliuzzo@mscpaonline.org or 617.303.2405.
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Massachusetts’ January Revenue Collections Total $3.347 Billion
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The Massachusetts Department of Revenue (DOR) announced its preliminary revenue collections totaling $3.347 billion, “which is $392 million or 13.3% more than the actual collections in January 2021, and $429 million or 14.7% more” than the DOR’s monthly benchmark, which was upgraded to 29.090 billion on January 15.
According to the February 3, 2021 DOR press release, “FY21 year-to-date collections totaled approximately $17.653 billion, which is $764 million of 4.5% more than collections in the same period of FY2020.”
To find a summary of the January 2021 preliminary tax collections as of February 3,, click here.
| Governor Baker Announces $45.6 Billion Fiscal Year 2022 Budget
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As we announced last week, Governor Baker announced a $45.6 billion Fiscal Year 2022 budget, which includes no tax increases on Massachusetts residents, commits $1.168 billion to municipalities, authorizes a withdrawal of $1.6 billion from the Commonwealth’s stabilization fund and more.
To recap, among the proposals in the FY22 budget include, but are not limited to:
The two branches of the Legislature have begun to craft their respective Fiscal Year 2022 budgets with a goal to have a signed budget in place by July 1, 2021.
We will keep you updated on these proposals as we continue to learn more information.
| Massachusetts Department of Revenue: How to Report Fraud
| The Massachusetts Department of Revenue (DOR) and the Department of Unemployment Assistance (DUA) released information on how to report unemployment compensation identity fraud.
Please find information from the DOR and DUA below:
Form 1099G: Unemployment Compensation – How to Report Fraud
As you know, anyone who received unemployment benefits or pandemic unemployment benefits from the Commonwealth of Massachusetts during 2020 will receive a Form 1099-G,
Certain Government Payments,
showing the amount of unemployed compensation received. This income is taxable and must be reported on the 2020 Massachusetts Individual Income Tax Return Form 1 or Form 1-NR/PY.
If a taxpayer receives a Form 1099-G reporting unemployment benefits but did NOT receive unemployment benefits, someone may have used their identity to falsely claim unemployment benefits. Ask them to notify the DUA by filing a fraud report online or call the DUA customer service department at 877-626-6800. Obviously, this income should not be reported on their Massachusetts individual income tax return. After DUA reviews the fraud report, they will send a corrected Form 1099-G. Keep a copy of all Forms 1099-G with the taxpayer’s 2020 tax records and be aware that DOR may ask for an explanation of why the amount shown on the Form 1099-G was not reported on the return.
For more information and resources, click here.
The IRS is also warning taxpayers of identity theft scams. For more information, click here.
| 2020 Earned Income Tax Credit Information
| Included in the last federal COVID-19 financial relief package signed in late December 2020 is a lookback provision that allows taxpayers who qualify for the Earned Income Tax Credit (EITC) to choose either their 2019 or 2020 income earnings, whichever is higher, for this year’s EITC.
To figure the EITC credit, click here.
For more information and resources on the EITC, click here.
| Guidance for Paycheck Protection Program (PPP)
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| DOR & IRS Updates
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