December 31st Filing Deadline for Computer Services Tax Abatements

The clock is ticking on filing a claim for sales or use taxes that you may have submitted to the MA Department of Revenue for computer and software services that was recently repealed.

When the tax was repealed in late September the law included language that changed the normal abatement deadlines giving taxpayers until December 31, 2013 to file an abatement electronically. DOR set up a special process to expedite these applications and refund the taxes to vendors as quickly as possible.  In turn, vendors must make every reasonable effort to refund the abatement to the customers from whom they collected the tax.

If you or your client filed and paid a use tax on services purchased that were subject to this repealed tax you must also follow the procedure below by December 31, 2013.

Of the 252 taxpayers who filed a return and submitted computer services taxes, 195 still have not filed an application or did not follow the instructions for expediting their claim. But there is still time and here’s how to do it:

1. Login to the vendor's WebFile for Business user account
2. Select "File, Pay or Amend Returns"
3. Select "Amend a Return"
4. Click "Amend" for the period 8/31/13
5. Complete and submit the amended return
6. Print the confirmation page that results and fax it to 617-660-7247 for expedited processing

Vendors may need to provide supporting documentation if requested by the Department and no actual refund will be made until the vendor establishes that the tax has been repaid or credited to the retail customer.   Taxpayers who reported a tax on computer and software services but did not remit payment of that tax to DOR should also file an amended return through expedited processing in order to avoid billing.

DOR is committed to processing your abatement application as quickly as possible. Should you have any questions, please call customer service at 617-887-6367.

If you have filed an electronic application for abatement, but did not follow the steps for expedited processing, you may fax your confirmation page to the number listed above and receive expedited processing. (If you do not have your confirmation page, just fax a brief statement with the date you filed the electronic application.)

For more information see TIR 13-17: Repeal of the Computer Software and Services Tax