Code of Massachusetts Regulations › 830 CMR - DEPARTMENT OF REVENUE › Title 830 CMR 62C.00 - State Tax Administration › Section 62C.24A.1 - Unified Audit Procedures for Pass-through Entities

Current through Register 1525, July 5, 2024
(1)
Statement of Purpose,
			 Application of Regulation, Organization
.
(a)
Purpose
. The
			 purpose of unified audit and appeal procedures for pass-through entities is to
			 streamline audit, assessment, and appeal procedures as they apply to
			 pass-through entities and their members (whether direct or indirect, as
			 described in 830 CMR 62C.24A.1) and to ensure consistent tax treatment of the
			 members of a pass-through entity. 830 CMR 62C.24A 1 describes the
			 administrative procedures applicable to a pass-through entity and its members
			 subject to a unified audit proceeding.
(b)
Application of 830 CMR
			 62C.24A.1
.
1. Generally, in
			 instances where Massachusetts unified audit procedures are substantially
			 similar to the tax administration procedures under Internal Revenue Code
			 sections 6221-6233 (TEFRA), Massachusetts unified audit procedures will be
			 informed by TEFRA and the regulations and Internal Revenue Service
			 interpretations and practices thereunder.
2. Unified audit procedures may be commenced
			 after the promulgation of 830 CMR 62C.24A.1 without regard to the taxable year
			 of the pass-through entity subject to audit or the taxable year of its members.
			 If a pass-through entity is subject to a unified audit proceeding for a tax
			 year, the unified audit determination applies to the entity's members that have
			 pass-through entity items associated with the pass-through entity for that
			 year, except to the extent a direct member has elected not to participate in
			 the unified audit, or, in a tiered structure, pass-through members or indirect
			 owners of a source pass-through entity have elected not to participate in the
			 unified audit.
3. 830 CMR 62C.24A 1
			 does not require the Commissioner to perform a unified audit of any
			 pass-through entity. The Commissioner has discretion to audit and assess or
			 abate the tax of one or more members of a pass-through entity without
			 conducting a unified audit, and such audit, assessment, or abatement may
			 encompass adjustments attributable to pass-through entity items as well as any
			 other items.
(c)
Organization
. 830 CMR 62C.24A.1 is organized as
			 follows:
1. Statement of Purpose, Application
			 of Regulation, Organization;
2.
			 Definitions;
3. Pass-through
			 Entities Subject to Unified Audits;
4. Conduct of Unified Audit;
5. Member Assessment Procedure; Contesting
			 Computational Adjustments;
6.
			 Procedures for a Member to Elect Not to Participate in Unified Audit;
			 Commissioner's Treatment of a Member's Pass-through Entity Items as Non-unified
			 Audit Pass-through Items;
7.
			 Consequences of Unified Audit for Members, Pass-through Members and their
			 Members, and Indirect Owners That Have Elected Not to Participate in the
			 Unified Audit;
8. Relationship
			 between Determinations of Tax in Unified Audits and in Member Audits;
9. Notification of Unified Audit Proceedings
			 by Commissioner;
10. Designation of
			 Tax Matters Partner; Tax Matters Partner's Powers and Obligations; Other
			 Pass-through Entity Notice Provisions;
11. Period of Limitations for Notice of
			 Determination Under Unified Audit;
12. Period of Limitations for Assessment of
			 Members;
13. Consistency of
			 Characterization of Pass-through Entity Items.