Proposed Massachusetts Corporate Excise Tax Provisions

We last reported that the effective date of a provision in the supplementary budget bill that would impose a tax on qualified S corporation subsidiaries ("Q Subs") was for tax years beginning on or after March 1, 2003.  At that time, the bill was awaiting Governor Romney’s signature.

Governor Romney signed the supplementary budget bill on March 5.   However, the effective date of the Q Sub proposal was vetoed and, by default, the provision takes effect on the date the bill was signed into law, March 5, 2003.  It is unclear, at this time, how the tax will be administered for tax year 2003 since the effective date is with reference to a specific date and not the 2003 tax year.

We will continue to track this issue and how it may impact your business.

Please contact Feeley & Driscoll's Accountants and Consultants by Email or call 1 (888) 875-9770 to learn more.

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