Massachusetts Clarification of Due Date Change for Extended C Corporation Tax Returns

AAFCPAs would like to make clients aware that, effective for years ending on December 31, 2016, the IRS changed the due date for filing calendar year C corporation returns from 3/15 to 4/15 (or the 15th day of the fourth month following the close of the corporation’s fiscal year).  Although states have subsequently adjusted their rules and procedures to accommodate the Federal change, the process was more difficult for Massachusetts, as the due date conformity required a formal change in state tax law.
In early March, Massachusetts provided administrative relief for C Corporations that filed their Massachusetts return before April 15, 2017 (i.e. the Federal due date). Effectively, late filing penalties would be waived so long as over 50% of the total Massachusetts tax (or the $456 minimum, if higher) was paid in by March 15, 2017.
This relief has been updated to accommodate calendar year C Corporation filers who extended their Federal returns to October 15. As was the case with the earlier ruling, Massachusetts will waive late filing penalties for corporations that met the above-referenced payment thresholds prior to March 15.  Absent this relief, extended Massachusetts tax returns would be due September 15, in advance of the Federal due date.
If you have any questions about tax planning or compliance, please contact your AAFCPAs partner or Richard Weiner at 774.512.4078 or rweiner@aafcpa.com.