DOR Update: 2022 Sales & Use Tax Returns Changes
AAFCPAs would like to make clients aware of some recent changes instituted by the Massachusetts Department of Revenue (DOR) related to 2022 Sales and Use Tax Returns, including forms related to sales tax on services and meals, room occupancy excise tax, and marijuana retail tax.
New lines will be added to the Sales Tax on Meals return (Form ST-MAB-4) which will require the taxpayer to break out cash versus credit sales. Since this may be difficult for some taxpayers, the DOR will allow estimates to be made until the close of the June 2022 period.
Taxpayers will also be required to disclose the Point of Sale (POS) system they use. Form STS, which is used to report sales tax on telecommunication services, will have a new line to capture the use tax due on purchases.
Starting back in April 2021, taxpayers who had more than $150,000 in total tax liability in the prior year, were required to make advance payments of tax through the 21st day of the month. AAFCPAs advises taxpayers to look at their cumulative 2021 tax liability to determine if these rules apply to them for 2022. Also, there is a new line on the 2022 tax return to show all amounts previously paid for the period.
Any taxpayer who is subject to the advance payment requirements and who pays less than the full amount due by the 25th of the month may be subject to a 5% penalty on the underpayment. The 2022 returns will have a new line called “Advance Payment Penalty” on which taxpayers can report any penalty due.
As always, AAFCPAs will continue to monitor updates from the DOR and keep you informed as changes occur or become clarified.