“Too confusing”, “unnecessary” and “takes too long ” are just some of the comments DOR heard from taxpayers and practitioners who use Form 335U for combined reporting on corporate tax returns. DOR collected the feedback on 355U and its long list of schedules through a series of meetings with business groups and software vendors as well as a survey we sent out twice. These were some of the department’s early efforts to reach out directly to taxpayers under the DOR360 initiative to address customer issues and enhance communications.
As a result of all the feedback we acted on 355U, eliminating at least five schedules, modifying schedule FE which allows data to be transferred from IRS Form 5471 and re-writing some instructions to make them more clear. Details can be found at http://www.mass.gov/dor/forms/corporate-excise/2013/355u-form-and-schedules/.
More than 5,000 corporations which use this form will find other changes when they file their 2013 returns. Error messages in tax software programs will have unique sequence numbers that will identify the schedule and line that may be rejected on e-file. It will also be possible to report 2014 short year returns on 2013 forms and if a taxpayer files or amends a combined report for tax years which are no longer supported for e-filing by their software vendor, they can now file those tax years on paper.
DOR also plans to follow-up next year once taxpayers and practitioners have had an opportunity to utilize the reforms we’ve initiated on 335U to see if additional changes are needed.
We heard you.