The State and Local Tax Buzz

SALT Alert: If you are a resident of, or have business operations in, Massachusetts you are probably aware by now that President Obama recently declared certain counties in Massachusetts federal disaster areas due to severe storms and flooding that plagued these counties for several weeks in March. The Massachusetts counties that are designated as federal disaster areas include the counties of Bristol, Essex, Middlesex, Norfolk, Plymouth, Suffolk and Worcester. As a resident of one of these counties, I can attest to those of you who reside elsewhere, that indeed, the storms and flooding were relentless. My own backyard resembled a swimming pool for much of March and into April, and I know of several homes, and even entire neighborhoods, in my town that sustained significant flood damage. So, I suppose before launching into a discussion of today’s topic, I should say “thank you, Mr. President” for recognizing that yes, indeed, we were negatively impacted by the severe storms and fl…

SALT Alert:On March 12, 2010, the Massachusetts Department of Revenue (“the Department”) issued Technical Information Release (“TIR”) 10-5,Limited Amnesty For Taxpayers With Existing Business Tax Liabilities, in which the Department announced the details of a limited amnesty program which goes into effect today, April 1, 2010. This two month limited amnesty program will run for 60 days, and thus is set to expire on June 1, 2010. Similar to general amnesty programs that have been in effect in other states, the Massachusetts limited amnesty program grants a waiver of all applicable penalties to “Eligible Taxpayers” who pay the full amnesty liability by the close of the amnesty period. However, unlike other general amnesty programs, participation in Massachusetts’ limited amnesty program is available only to specific “Eligible Taxpayers” who are offered the opportunity to participate in the amnesty program.

Definition of an Eligible Taxpayer, Eligible Tax Type and Excluded Taxpayers
Under…