S 1885 Massachusetts Senate · 193rd Legislature (2023-2024)

An Act improving the tax administrative laws of the Commonwealth

This bill amends Massachusetts tax laws to strengthen the state's ability to challenge transactions that lack a genuine business purpose beyond tax avoidance. It requires taxpayers to prove both a valid business reason and economic substance for such transactions, while explicitly protecting routine business decisions like choosing between debt and equity financing. Additionally, the legislation allows corporations to request a six-month extension for filing tax returns by paying an estimated amount in advance, and it mandates that the state pay reasonable attorney fees to taxpayers who win appeals against tax assessments. Finally, the bill clarifies the schedule for quarterly estimated tax payments, specifying that each of the four installments must equal 25 percent of the required annual payment.
Bill status passed 3 of 4 stages cleared
Introduction
Feb 2023
Committee Review
Feb 2023
House Passage
Feb 2023
Governor
Introduced Feb 16, 2023 Last action Feb 15, 2024
Floor votes

How they voted

This bill passed the House. No roll call record of that vote is available.
Full legislative history

Actions timeline

Total actions
4
Key actions
1
Committee
1
Feb 16, 2023
Lower · Passed
House concurred
lower
Feb 16, 2023
Committee
Referred to the committee on Revenue
upper
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Mike Moore
Mike Moore
DDemocratic
MA
Second Worcester