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News & Updates from the 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 email Zach Donah or Larry Liuzzo.
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MassCPAs Releases Whitepaper Pushing State to Update Tax Code
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An easily digestible document for all, our arguments to update the conformity date state that:
- Massachusetts is the only state that conforms to a 2005 version of the Internal Revenue Code (IRC). This makes our state a unique outlier and defeats the entire purpose of conformity.
- There is no economic or tax policy reason for Massachusetts not to update its conformity date. It’s a routine action that nearly every other state has taken to increase simplicity for the Department of Revenue (DOR) and taxpayers.
- Conformity eases complexity for taxpayers, tax practitioners and the DOR. Many Massachusetts taxpayers must calculate their federal income tax return and then do a variety of separate calculations to determine their state income tax liability due to the state’s conformity to the 2005 IRC. Updating the conformity date alleviates this administrative nightmare.
- Conformity is convenient for states, as they can piggyback off the federal government’s definitions, audits and taxpayer data. Conformity in no way impacts the legislature’s authority to make tax policy decisions for Massachusetts. The Legislature will still retain full control over state-specific deductions and exemptions.
- Updating the conformity date would have an extremely minimal impact on the state’s revenue (roughly $32.9 million, according to the DOR).
“Massachusetts conforms to the 2005 IRC, but most states conform to 2021 IRC, which makes us more outdated than any other state by a landslide,” said MassCPAs President and CEO, Amy Pitter. “There is no economic or tax policy reason for Massachusetts not to update its conformity date. This low cost and necessary update will provide consistency and simplicity for Massachusetts taxpayers and streamline tax administration at the Department of Revenue (DOR). We urge the Legislature to include this important provision in its upcoming FY23 budget proposals.”
We look forward to working with the Legislature to ensure this critical update is passed into law. We will keep you posted on any developments as they arise.
| Meet Mireille Eastman, Massachusetts Taxpayer Advocate
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The MassCPAs government affairs team recently met with Mireille Eastman, the new taxpayer advocate, to discuss her new role and how her office and MassCPAs can work best on your behalf. Check out our conversation, in part, below.
Tell us about yourself and your professional background.
I started at the Department of Revenue (DOR) as an intern in 2004 when I was in my third year at Boston University School of Law. After graduation, I worked in the Litigation Bureau for seven years,
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| where I worked on many kinds of disputes; from small dollar penalty cases to some of DOR’s most complicated corporate tax cases. I have always had an interest in tax policy, so I moved to the Rulings and Regulations Bureau where for 10 years I was involved in the drafting and development of various regulations and other public written statements, participated in various working groups and provided guidance to internal and external stakeholders.
How do you see the role of Taxpayer Advocate?
One of my favorite aspects of government work is that we are acting on behalf of the entire Commonwealth of Massachusetts, so our view cannot be confined to a single matter or perspective. The Taxpayer Advocate’s primary responsibility is to identify and propose solutions and changes for systemic problems that increase the burden on, or create issues for, taxpayers. Where appropriate, the Advocate will recommend administrative changes to resolve or mitigate these problems. As someone who litigated cases and worked with taxpayers, I am keenly aware of the burdens and frustrations that arise when systemic issues are not resolved proactively. Given my background in tax policy development, I understand that taking a proactive approach in the development of our policies, and how we administer and communicate those policies, can benefit all parties. In my new role, I hope to marry my legal knowledge, my advocacy skills, and my passion for serving the people of the Commonwealth.
How can MassCPAs and our members best assist you in this role?
Keep sending emails about questions and issues as they arise. We do our best to keep our website updated, but sometimes changes come quickly, so if there is a discrepancy, error or important topic impacting the community that we have not addressed, we are grateful for the feedback. We recommend using thre resources on our website, like:
Last but not least, I am excited to work with MassCPAs President and CEO Amy Pitter on the DOR Advisory Council, which offers another opportunity to collaborate on DOR’s important initiatives to better serve the needs of Massachusetts taxpayers.
To read the entire conversation and learn more about Mireille, click here.
| DOR Tax Season Information
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Massachusetts taxpayers will have until Tuesday, April 19, to file their federal and state 2021 income tax returns, file for personal income extensions and submit Q1 estimated payments.
Below are links to various DOR webpages outlining important tax season information. The DOR has committed to updating these webpages when necessary. If you have questions for the DOR or if there is inaccurate or confusing information listed on their website, please email Larry Liuzzo.
State and Local Tax (SALT) Information
DOR update: Eligible pass-through entities (PTE) must register for the 63D-ELT tax type before making a payment. Do not make 63D-ELT payments on other pre-existing tax types. The PTE must file its annual return and make the election before filing the 2021 Form 63D-ELT.
SALT Links:
To sign up to receive important updates directly from the DOR, click here.
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IRS Tax Filing Information
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