Revised Administrative Guidance: The tax implications of Groupon, LivingSocial and other deal-of-the-day transactions are undoubtedly a topic I’m passionate about. If you’re a frequent visitor to The State and Local Tax “Buzz” , you’ve likely read at least a few of my prior contributions on this topic. Today I’m back to reporting on a new, or should I say updated, " Groupon state tax" development - and with good reason! Yesterday, the Massachusetts Department of Revenue (“the Department”) issued a revised Draft Directive on its position on the impact of deal-of-the-day (e.g., Groupon, LivingSocial) promotional discounts on sale price subject to sales tax. The Department’s Working Draft Directive 12-XX: Application of Sales Tax to Sales and Redemption of Qualifying Promotional Vouchers replaces previously issued Working Draft Directive 11-XX : Application of Sales Tax to Sales and Redemption of Third Party Coupons. This is significant!!