MASSACHUSETTS IS CHANGING THE WAY THAT BUSINESSES “DO BUSINESS” WITH THE DEPARTMENT OF REVENUE.

Massachusetts has new electronic filing rules that effect most businesses. Frequently asked questions are:

Is this optional?
The short answer is no. As of January 1, 2005, all businesses will be required to file withholding tax, sales & use tax, meals tax, and room occupancy tax returns electronically.

New businesses and established businesses who have a combined tax amount (adding together the withholding tax, sales & use tax, meals tax, and room occupancy taxes) of $10,000 or more must also pay these taxes electronically. Please note that the DOR may impose a $100 penalty for each return or payment that was suppose to be filed electronically, but was incorrectly filed.

In addition, Employers with 50 or more employees must file the Quarterly Report of Wages Paid (WR-1) electronically.

Okay, so what do I do?
First, you need to register. Go to www.mass.gov/dor. Click on WebFile for business. Select “register” and follow the instructions. You will need to enter your bank account and bank routing number. The routing number should be on the bottom of your checks. If in doubt, please verify by calling your bank. Most taxpayers prefer to use the “ACH Debit” payment method. This authorizes the DOR to request that a specific payment amount on a specific date be withdrawn from your account and sent to the DOR. There are no fees with this method.

What if I use a payroll service?
The payroll service will be electronically filing your payroll returns. By registering, you will be able to go ahead and make sure that the payroll service is filing your returns on time and paying the correct amounts on your behalf. In addition, even if you use a payroll service, you may be required to file other types of taxes such as corporate tax payments or sales tax payments electronically.

I do not have a computer but I am required to file electronically -- What can I do?

Give us a call. The DOR can set you up to file using a touch-tone telephone or we may be able to file the returns for you. We can be reached at 781-453-8700.

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