Post Content

The Department of Revenue has received more than 30,000 abatement claims resulting from the issuance of revised DD 12-1, on March 15, 2012,: G.L. c.62, s.6(a) Credit for Taxes Paid to Another Jurisdiction: Insurance Fund Payments Made Pursuant to Rhode Island Law. This Directive ruled that mandatory payments made by a Massachusetts taxpayer to Rhode Island under the Rhode Island Temporary Disability Insurance Act should be afforded the credit against Massachusetts personal income tax as taxes paid to another jurisdiction. The Directive allowed Massachusetts taxpayers who have paid the RI Disability tax to claim a credit for tax year 2011, and for the three years previous. Now that the April 18 tax filing deadline has passed, those seeking the credit may file for tax years 2011, 2010 and 2009. The Directive triggered a huge volume of abatements, many of them filed in error. The most frequent of those errors is to calculate the credit incorrectly by claiming the amount paid to the Rhode Island fund as the amount of the requested abatement. This, however, is not a refundable credit. For instance, if your Massachusetts income tax for the period was zero there is no allowable credit for taxes paid to another jurisdiction. The allowable credit is the lesser of the Massachusetts income tax on the income reported to Rhode Island compared with the actual income tax paid to Rhode Island plus the RISDI. Based upon the significant number of abatements and the amount of time needed for our staff to recalculate the allowable credit for all applicable tax years, the length of time to process these abatements has significantly increased. To help address this backlog and time delay, DOR has reassigned staff to assist in working these abatement cases. The Department processes and completes abatement claims on a first in, first out basis. Based upon the high volume of claims received, our processing time is approximately six months. We appreciate your patience in this matter and apologize for any inconvenience this may cause.

Written By:

Recent Posts

MassTaxConnect powers into new year with more speed and precision posted on Dec 21

MassTaxConnect powers into new year with more speed and precision

You know where you’re going. With a few new add-ons, we made it easier to get there. Same road, better ride This January, we hope your 2021 gets off to a smooth start with our enhanced, high performance tax platform. Changes to MassTaxConnect are subtle,   …Continue Reading MassTaxConnect powers into new year with more speed and precision

It’s a new holiday season but some things haven’t changed posted on Dec 11

Scams are rampant but you can protect yourself We are not alone in trying to keep you safe. The IRS and other states are working hard to come up with ways to stop the scammers who never take a holiday. We’ve pulled some of the   …Continue Reading It’s a new holiday season but some things haven’t changed

On the road (virtually) with DOR posted on Nov 9

Every fall and winter, we hit the road to talk with community members and tax professionals about the upcoming tax filing season and other need-to-know DOR updates. Of course, like many things this year, we had to rethink what “on the road” would look like   …Continue Reading On the road (virtually) with DOR