Tuesday, February 8, 2022

Elective Pass-through Entity Excise – Important Information from MASS DOR


Elective Pass-through Entity Excise – Important Information

On September 30, 2021, the Massachusetts Legislature enacted an elective pass-through entity excise in response to the $10,000 cap on the federal state and local tax deduction added in the 2017 federal Tax Cuts and Jobs Act.

IMPORTANT INFORMATION: Eligible pass-through entities must register for the 63D-ELT tax type before making a payment. Do not make a 63D-ELT payment on other pre-existing tax types. A pass-through entity must file its annual return and make the election before filing the 2021 Form 63D-ELT.
A pass-through entity can elect to pay the excise when filing Form 3, Form 355S – Schedule S, or Form 2 and will confirm the election by submitting the new Form 63D-ELT. Detailed information is provided on the Frequently Asked Questions page linked below.

INFORMATION AVAILABLE: Extensive information is available about the new elective pass-through entity excise including:
  1. Frequently Asked Questions webpage where you will find information on who’s eligible to make the election and how to make the election.
  2. Working Draft Technical Information Release which explains the elective excise on pass-through entities as enacted in the Fiscal Year 2022 Budget.
If you have a question that’s not covered on the FAQ page, please send that along to us. You can also log in to your MassTaxConnect account and send a secure email specifically related to your account.  

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