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Small businesses are the lifeblood of a healthy economy. That’s true nationally, and that’s certainly true here in Massachusetts. With the advent of DOR’s newest electronic filing system, MassTaxConnect, life is about to get a whole lot easier for many companies across the Commonwealth.

Currently, some small businesses file their state corporate excise via form 355SBC, a corporate return for businesses with gross receipts under $100,000, total income under $100,000, and 100% of net taxable income generated in Massachusetts.  Most corporations that don’t meet the criteria for filing Form 355SBC must file Form 355 or Form 355S electronically.

DOR’s electronic filing system, WebFile for Business, did not allow small corporations to file online leaving many mom-and-pop shops with limited and sometimes expensive options for filing their corporate excise returns with the DOR:

  • Hire a tax practitioner to file Form 355 or 355S electronically on their behalf
  • Purchase software annually to prepare and file Form 355 or 355S electronically
  • Fill out Form SBC on paper if eligible

Enter MassTaxConnect. Exit Form 355SBC.

On November 30, MassTaxConnect replaces WebFile for Business as DOR’s newest electronic filing system. MassTaxConnect will be available for nearly all business tax types, and will include a corporate excise filing option for many small business taxpayers. Form 355SBC will become a thing of the past, and many corporations that faced penalties for failing to file electronically will be able to file electronically for free.

The free on-line corporate excise filing options will be available to:

  • S Corporations with 100% apportionment to MA, no refundable credits, not part of a Form 355U/combined corporate excise return – no income cap involved
  • Other corporations that meet the old Form 355SBC criteria – gross receipts or sales less than $100,000, total income less than $100,000, 100% of net income taxable in MA and not subject to corporate tax in any other state, not a DISC or security corporation

This is just one of the many benefits available to small businesses—and all businesses—in Massachusetts when MassTaxConnect goes live November 30.

 Visit our MassTaxConnect resource page to learn more!

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