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IRS: Most Chapter 62F Refunds Will Not be Taxed
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Last week, the Internal Revenue
Service (IRS) issued guidance stating that most Massachusetts
taxpayers who received a Chapter 62F refund in 2022 will not be
subject to federal tax. According to the IRS, "If the payment is
a refund of state taxes paid and either the recipient claimed the
standard deduction or itemized their deductions but did not receive a
tax benefit (for example, because the $10,000 tax deduction limit
applied) the payment is not included in income for federal tax purposes.”
To read the IRS statement, click
here.
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Governor Healey: Tax Package to Arrive with FY24
Budget
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In an
interview with WBUR yesterday, Governor Healey stated that she
intends to file a tax package alongside her Fiscal Year 2024 (FY24)
budget proposal by March 1, though did not offer any specifics of the
package. The Governor has stated multiple times over the last couple
months that certain tax relief has been a top priority of her
administration.
As you know, MassCPAs and the Greater Boston Chamber of
Commerce unveiled
a tax reform package focused on improving the
Commonwealth’s competitiveness. The recommendations have been
formally submitted to Governor Healey and the Massachusetts
Legislature.
The goals of the proposed tax reforms are to:
- Mitigate the negative effects from tax
policy on employers, job creators and economic decision
makers
- Correct tax policies for which
Massachusetts is an outlier
- Stimulate new economic activity and
protect and sustain current economic activity
- Address the millionaire’s tax
unintended consequences
You can read
more about the tax proposals here.
We look forward to working with Governor Healey, the
Massachusetts Legislature and business community partners on these
important relief measures.
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Massachusetts Tax Policy Impact Survey
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Yesterday, office managing partners and members working
in tax received a survey to help us measure the impact of
Massachusetts tax policy (including the millionaire’s tax) and test
tax reform proposals and their potential impact on taxpayer behavior.
The purpose of the survey is to backup anecdotal evidence of an
increase in outbound migration with data and is part of our efforts
to champion the Commonwealth’s competitiveness and mitigate any
negative effects of such policies.
The deadline
to complete the survey is next Friday, February 24. To ensure as
much accuracy as possible, please coordinate with your internal team
to ensure there are no duplicate responses for the same set of
taxpayers.
If you have any questions, or you are an office managing partner or a
member working in tax and did not receive the survey, please contact Zach Donah, CAE or
Larry Liuzzo.
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DOR Tax Filing Season Resources
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Massachusetts taxpayers will
have until
Tuesday, April 18, to file federal and state income
tax returns for 2022.
Below are links to various DOR webpages with important
tax season information that the DOR has committed to updating when
necessary. If you have questions, please email Larry Liuzzo.
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IRS Tax Filing Season Resources and Information
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Additional Federal and State Tax Resources
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Prioritize a healthy lifestyle this busy season
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Accounting and Finance Global Talent Retention Survey –
Deadline February 18
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IMA® (Institute of Management
Accountants) is conducting a research study to identify the causes of
job turnover and the contributors to talent retention among
accountants and financial professionals. Please
take the 10-minute survey here before
this Saturday, February 18.
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Share your expertise – and promote your
profession!
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MassCPAs members will be
featured in the media discussing hot topics throughout tax season. If
you are interested in participating, please email Elizabeth Emanuelson.
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Have a question, ideas or feedback you'd
like to share? We're here for you! Reach out to Larry Liuzzo for
assistance.
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