TAXES IN MASSACHUSETTS

Corporate Taxes vs. Personal Taxes in Massachusetts



Corporate Taxes vs. Personal Taxes in Massachusetts

Introduction

executives of multistate corporations are no doubt aware that many state income tax controversies relate to formulary apportionment. Often, the central issue in these disputes is the computation of the sales, or gross receipts, factor. Prior to the introduction of the three-factor apportionment formula, a taxpayer's income was apportioned by means of a single property factor (Ruiz, 2009). In 1957, in order to attain uniformity in state taxation methods, the National Conference of Commissioners on Uniform State Laws formulated the Uniform Division of Income for Tax Purposes Act (UDITPA). Since that time, 43 of the 46 states that impose corporation income taxes have adopted the entire model act or have adopted a similar version of UDITPA

Main Body

A corporate income tax? called the corporation excise tax? was adopted by Massachusetts in 1919. Massachusetts has a 9.5 percent flat rate on most corporate income; certain kinds of corporations have different rates — 10.5 percent for financial institutions? 6.5 percent for utilities? and 2 percent of premiums for insurance companies (Ruiz, 2009).

A Comparison and Contrast of Corporate Taxes and Personal Taxes in Massachusetts

Massachusetts Corporate Taxes provides practitioners with detailed guidance on the taxes imposed on corporations doing business in Massachusetts—business corporations, financial institutions, insurance companies (Olmert, 1996), and utility corporations—according to Chapter 63 of the Massachusetts General Laws. Addressing the various taxes imposed by Chapter 63, as well as by other parts of Massachusetts law, the Portfolio, written by Jonathan Brett Muroff, Esq., identifies in detail:

* which business corporations are subject to tax,

* how to determine net income, and

* which legal authorities provide the jurisdiction to tax.

In addition, this Portfolio identifies and examines available credits and incentives, combined net income, the apportionment formula and its application among multistate business corporations, and the unitary business principle (Olmert, 1996).

The Working Papers, which appear at the end of the Portfolio, contain examples of various tax forms used by business entities in Massachusetts. Massachusetts Corporate Taxes allows you to benefit from:

* Hundreds of hours of original research on specific tax planning topics from leading practitioners in this area.

* Invaluable practice documents including tables, charts and lists.

* Plain-English guidance from world-class experts.

* Real-world and in-depth analysis that lets you explore various options.

* Time-saving access to relevant sections of tax laws, regulations, court cases, IRS documents and more.

* Alternative approaches to both common and unique tax scenarios.

This Portfolio is part of the State Tax Portfolios Library, a comprehensive series, which covers major state tax transactions and issues with expert, in-depth analysis, and offers commentary on a wide range of multi-state and state-specific taxation topics, including Sales and Use, Corporate Income, Individual Income, Property, Gross Receipts, Limitations on States' Authorities to Tax, Credits and Incentives, Electronic Commerce, Mergers and Acquisitions, Procedure and Administration, Special Industries, and more.

With the possible exception of accountants, nobody likes taxes. But most of us recognize that our taxes are necessary to keep the country running, and pay for ...