On December 4, the Associated Industries of Massachusetts (AIM) submitted written comments to the Department of Revenue regarding the Department's proposed market sourcing regulations. The proposed regulations govern the sourcing of receipts from sales of services and intangibles. In its comments, AIM rightly objected to provisions that prevent taxpayers from adjusting their sourcing methods through amended returns, but grant the Commissioner considerable leeway in adjusting taxpayers' sourcing methods through audit. AIM also criticized the draft regulations' tiered sourcing rules, which will likely create uncertainty and increase compliance costs.
Reed Smith's Michael Jacobs and Robert Weyman recently authored a post on AIM's blog that discusses AIM's comments in greater detail. To read that post, click here.
This article is presented for informational purposes only and is not intended to constitute legal advice.
