Tax News

CCH (cch.taxgroup.com) reports:

  The Massachusetts Department of Revenue has issued guidance explaining the impact of federal changes on the state's corporate excise and personal income tax. Specifically, state legislation adopted the new federal exclusion from gross income allowed by the federal American Recovery and Reinvestment Act of 2009 ("ARRA") for the COBRA subsidy for certain involuntarily terminated employees and their families. In addition, the legislation included provisions decoupling Massachusetts tax law from certain federal tax law changes made by ARRA.

  The state's corporate excise provisions generally reference the Internal Revenue Code ("Code") as amended and in effect for the current year. For personal income tax purposes, the pertinent Massachusetts provisions generally adopt the Code as amended and in effect on January 1, 2005; however, the Massachusetts personal income tax adopts the current Code with respect to certain sections.