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
Mike Moore
DDemocratic
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