Massachusetts State Income Tax Protest — Application for Abatement and Appeal to the Appellate Tax Board

MASSACHUSETTS STATE INCOME TAX PROTEST — APPLICATION FOR ABATEMENT AND APPEAL TO THE APPELLATE TAX BOARD

TABLE OF CONTENTS

1. Overview and Procedural Posture
2. Deadline Computation Worksheet
3. Stage 1 — Application for Abatement (Form ABT) Cover Letter
4. Stage 1 — Statement of Grounds in Support of Abatement
5. Stage 2 — Petition to the Appellate Tax Board (Caption)
6. Stage 2 — Petition Allegations
7. Forum Election — Formal vs. Informal vs. Small Claims
8. Burden of Proof and Evidentiary Submission
9. Prayer for Relief
10. Signature, Verification, and Service Blocks
11. Massachusetts Practice Notes
12. Sources and References

1. OVERVIEW AND PROCEDURAL POSTURE

This template guides the preparation of a Massachusetts personal or corporate income tax protest. Massachusetts taxpayers contest a tax assessment in two stages:

1. Administrative stage. File an Application for Abatement (Form ABT) with the Commissioner of Revenue under G.L. c. 62C § 37, either through MassTaxConnect or by paper filing.
2. Adjudicatory stage. If the Commissioner denies (or is deemed to have denied) the abatement, file a Petition with the Appellate Tax Board (ATB) — an independent quasi-judicial body separate from the Department of Revenue — under G.L. c. 58A § 7.

The ATB is not part of the Department of Revenue; it is an independent administrative tribunal whose decisions on questions of fact are final and may be appealed only to the Massachusetts Appeals Court on questions of law (G.L. c. 58A § 13).

2. DEADLINE COMPUTATION WORKSHEET

3. STAGE 1 — APPLICATION FOR ABATEMENT (FORM ABT) COVER LETTER

[LAW FIRM LETTERHEAD]

Date: [DATE]

Massachusetts Department of Revenue

Customer Service Bureau — Abatement Unit

P.O. Box 7058

Boston, MA 02204

Re: Application for Abatement under G.L. c. 62C § 37

Taxpayer: [TAXPAYER NAME]

Federal ID / SSN (last four): [####]

Tax Type: Massachusetts [Personal Income Tax / Corporate Excise]

Tax Period(s): [YEAR(S)]

Notice / Assessment No.: [ASSESSMENT NUMBER]

Amount in Dispute: $[AMOUNT]

Dear Commissioner:

Enclosed please find Form ABT, Application for Abatement, filed on behalf of the above-named taxpayer pursuant to G.L. c. 62C § 37 and 830 CMR 62C.37.1. The Application is timely because it is filed within the latest of (i) three years from the filing of the return, (ii) two years from the date of assessment, or (iii) one year from the date of payment.

The Application requests abatement of the tax, interest, and penalties described in the attached Statement of Grounds and supporting documentation. Pursuant to 830 CMR 62C.37.1, the taxpayer has included with this filing all supporting information, documents, explanations, arguments, and authorities reasonably necessary to allow the Commissioner to determine entitlement to abatement.

The taxpayer [does / does not] request a hearing under G.L. c. 62C § 37.

Respectfully submitted,

[________________________________]

[ATTORNEY NAME], BBO No. [######]

Counsel for [TAXPAYER]

4. STAGE 1 — STATEMENT OF GROUNDS IN SUPPORT OF ABATEMENT

4.1 Identification

1.1. Taxpayer: [FULL LEGAL NAME], [INDIVIDUAL / ENTITY TYPE] with principal residence/place of business at [ADDRESS].

1.2. Tax type and period: Massachusetts [Personal Income Tax under G.L. c. 62 / Corporate Excise under G.L. c. 63] for tax year(s) [YEAR(S)].

1.3. Notice contested: [Notice of Assessment / Notice of Intention to Assess / Notice of Failure to File] dated [__/__/____], Assessment No. [NUMBER], in the total amount of $[AMOUNT] (tax of $[AMOUNT], interest of $[AMOUNT], and penalties of $[AMOUNT]).

4.2 Procedural Timeliness

2.1. Original return filed on [__/__/____].

2.2. Tax assessed (or deemed assessed) on [__/__/____].

2.3. Tax paid on [__/__/____] (if applicable).

2.4. This Application is filed on [__/__/____], within the latest applicable period under G.L. c. 62C § 37.

4.3 Factual Background

3.1. [NARRATIVE — describe the underlying transaction(s), filings, and the basis of the DOR's determination. Include relevant federal tax treatment if income is computed by reference to the Internal Revenue Code under G.L. c. 62 § 2.]

4.4 Grounds for Abatement

4.1. [GROUND 1 — e.g., tax is excessive in amount because the DOR included income not subject to Massachusetts tax under G.L. c. 62 § 5A (nonresident sourcing) / improperly disallowed a deduction allowed under G.L. c. 62 § 3 / misapplied a credit under G.L. c. 62 § 6.]

4.2. [GROUND 2 — e.g., assessment is illegal because it was issued outside the statute of limitations under G.L. c. 62C § 26.]

4.3. [GROUND 3 — e.g., penalty abatement is warranted because the taxpayer acted with reasonable cause and not willful neglect under G.L. c. 62C § 33(f).]

4.5 Supporting Documentation Attached

• ☐ Copy of contested DOR notice
• ☐ Copy of Massachusetts return(s) at issue
• ☐ Copy of corresponding federal return(s) (if income flows from federal AGI)
• ☐ Workpapers reconciling Massachusetts taxable income
• ☐ Source documents (Forms W-2, 1099, K-1, brokerage statements, settlement agreements, contracts)
• ☐ Legal authorities (statutes, regulations, TIRs, Letter Rulings, ATB and SJC decisions)
• ☐ Power of Attorney (Form M-2848)

5. STAGE 2 — PETITION TO THE APPELLATE TAX BOARD (CAPTION)

COMMONWEALTH OF MASSACHUSETTS

APPELLATE TAX BOARD

Docket No. [________________________________]

PETITION UNDER FORMAL PROCEDURE — G.L. c. 58A § 7

6. STAGE 2 — PETITION ALLEGATIONS

The Appellant, by counsel, states:

6.1 Jurisdiction

1.1. This is an appeal pursuant to G.L. c. 62C § 39 and G.L. c. 58A §§ 6, 7 from the [denial / deemed denial] of the Appellant's Application for Abatement filed under G.L. c. 62C § 37.

1.2. Appellant is [an individual residing at / a corporation with principal place of business at] [ADDRESS].

1.3. Appellee is the Commissioner of Revenue, with offices at 100 Cambridge Street, Boston, Massachusetts.

6.2 Procedural History

2.1. The Department of Revenue issued a Notice of Assessment dated [__/__/____] assessing tax of $[AMOUNT], interest of $[AMOUNT], and penalties of $[AMOUNT] for tax year(s) [YEAR(S)].

2.2. Appellant timely filed Form ABT, Application for Abatement, on [__/__/____], pursuant to G.L. c. 62C § 37.

2.3. The Commissioner [denied the Application by Notice of Abatement Determination dated [__/__/____] / failed to act within six months of the filing of the Application, resulting in a deemed denial under G.L. c. 58A § 6].

2.4. This Petition is filed within [60 days of the Notice of Abatement Determination / 6 months of the deemed denial] as required by G.L. c. 62C § 39 and G.L. c. 58A § 7.

2.5. The contested tax has been paid in full, except for the portion specifically claimed as not due, in accordance with G.L. c. 62C § 39.

6.3 Statement of Issues

3.1. Whether the Commissioner erred in [ISSUE 1 — e.g., treating Appellant as a Massachusetts resident under G.L. c. 62 § 1(f) for tax year [YEAR]].

3.2. Whether the Commissioner erred in [ISSUE 2 — e.g., disallowing Appellant's claimed deduction under G.L. c. 62 § 3.B(a)(__)].

3.3. Whether the Commissioner erred in imposing penalties absent the requisite culpability standard under G.L. c. 62C § 33.

6.4 Grounds and Argument

4.1. [Argument supporting Issue 1 — cite statutes, regulations, and Massachusetts ATB / SJC / Appeals Court precedent.]

4.2. [Argument supporting Issue 2.]

4.3. [Argument supporting penalty abatement — reasonable cause standard.]

6.5 Relief Requested

5.1. Appellant requests that the Appellate Tax Board:

• ☐ Abate the tax assessed for tax year(s) [YEAR(S)] in the amount of $[AMOUNT];
• ☐ Abate accrued interest associated with the abated tax pursuant to G.L. c. 62C § 40;
• ☐ Abate penalties in the amount of $[AMOUNT];
• ☐ Order a refund with statutory interest under G.L. c. 62C § 40;
• ☐ Grant such other and further relief as the Board deems just and proper.

7. FORUM ELECTION — FORMAL VS. INFORMAL VS. SMALL CLAIMS

The Appellant hereby elects: ☐ Formal Procedure ☐ Informal Procedure ☐ Small Claims Procedure.

8. BURDEN OF PROOF AND EVIDENTIARY SUBMISSION

8.1. The burden of proof is on the taxpayer to demonstrate entitlement to abatement. See, e.g., Towle v. Commissioner of Revenue, 397 Mass. 599 (1986); Schussel v. Commissioner of Revenue, 472 Mass. 83 (2015).

8.2. The Commissioner's assessment is presumptively correct, and the taxpayer must come forward with substantial evidence to overcome that presumption.

8.3. Appellant intends to introduce the following evidence at hearing:

• ☐ Testimony of [WITNESSES];
• ☐ Documentary exhibits (workpapers, contracts, correspondence, source documents);
• ☐ Expert testimony of [EXPERT] on [SUBJECT MATTER];
• ☐ Stipulations under 831 CMR 1.27.

9. PRAYER FOR RELIEF

WHEREFORE, Appellant respectfully requests that the Appellate Tax Board:

• A. Grant abatement of the tax, interest, and penalties as set forth above;
• B. Order refund with statutory interest under G.L. c. 62C § 40;
• C. Issue findings of fact and report under G.L. c. 58A § 13 if requested;
• D. Award such other and further relief as is just and proper.

10. SIGNATURE, VERIFICATION, AND SERVICE BLOCKS

Date: [DATE]

Respectfully submitted,

[LAW FIRM NAME]

By: [________________________________]

[ATTORNEY NAME], BBO No. [######]

Counsel for Appellant [TAXPAYER]

[ADDRESS]

Telephone: [NUMBER]

Email: [EMAIL]

Verification

I, [TAXPAYER / OFFICER NAME], declare under the pains and penalties of perjury that I have read the foregoing Petition and that the statements contained therein are true to the best of my knowledge and belief.

Date: [__/__/____]

[________________________________]

[NAME]

Certificate of Service

I certify that on [__/__/____] I served a true copy of this Petition and supporting papers on the Commissioner of Revenue, Litigation Bureau, P.O. Box 9565, Boston, MA 02114-9565, by [first-class mail / hand delivery / electronic filing through eAccess].

[________________________________]

[ATTORNEY NAME]

11. MASSACHUSETTS PRACTICE NOTES

• Appellate Tax Board is independent. The ATB is a quasi-judicial body created under G.L. c. 58A and is not part of the DOR. Its members are appointed by the Governor. ATB decisions on questions of fact are final.
• Two-track deadline. The 60-day clock runs from the DOR's Notice of Abatement Determination. The 6-month "deemed denial" clock runs from the filing of Form ABT if the DOR has taken no action. Once the deemed denial accrues, the taxpayer may file at the ATB without waiting for an explicit DOR ruling.
• Pay-to-play rule. Under G.L. c. 62C § 39, a taxpayer generally must pay the tax (other than the portion contested in good faith) before the ATB has jurisdiction. The DOR may also require a bond.
• Small-claims default. If the amount in dispute is $25,000 or less per tax year/transaction, the small claims procedure under G.L. c. 58A § 7B applies automatically unless the taxpayer affirmatively elects the formal procedure. Decisions under § 7B are final and not appealable.
• Substantiation at the abatement stage. 830 CMR 62C.37.1 requires the taxpayer to attach all supporting documents and arguments to Form ABT. Failure to do so risks waiver of issues at the ATB. Always file a complete record at Stage 1.
• Form ABT. File electronically through MassTaxConnect for fastest acknowledgment, or by paper. Attach a Power of Attorney (Form M-2848) if filing through counsel.
• Office of Appeals. Before issuance of an NIA, taxpayers may also pursue informal resolution at the DOR Office of Appeals under AP 628. This is administrative and does not toll abatement deadlines.
• Conformity issues. Massachusetts personal income tax is generally tied to the Internal Revenue Code as in effect on January 1, 2022 (G.L. c. 62 § 1(c)) for personal income; corporate excise conforms to a current-IRC standard for many provisions. Verify which conformity date applies to the year at issue.
• Penalty abatement. Under G.L. c. 62C § 33(f), penalties may be abated for reasonable cause. Cite Andover Savings Bank v. Commissioner, 387 Mass. 229 (1982) and ATB cases applying the reasonable cause standard.
• Appellate review. Decisions under formal procedure may be appealed to the Massachusetts Appeals Court on questions of law within 60 days of the ATB decision (G.L. c. 58A § 13).

12. SOURCES AND REFERENCES

• G.L. c. 62C § 37 (Application for Abatement) — https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62C/Section37
• G.L. c. 62C § 39 (Appeal to Appellate Tax Board) — https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62C/Section39
• G.L. c. 58A § 6 (Deemed denial) — https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter58A/Section6
• G.L. c. 58A § 7 (Formal procedure) — https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter58A/Section7
• G.L. c. 58A § 7B (Small claims procedure) — https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter58A/Section7B
• G.L. c. 58A § 13 (Findings; appellate review) — https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter58A/Section13
• 830 CMR 62C.37.1 (Abatements) — https://www.mass.gov/regulations/830-CMR-62c371-abatements
• 831 CMR 1.00 (ATB Rules of Practice and Procedure) — https://www.mass.gov/regulations/831-CMR-100-rules-of-practice-and-procedure
• Mass. DOR Form ABT — https://www.mass.gov/doc/form-abt-application-for-abatement/download
• AP 627 (Applications for Abatement) — https://www.mass.gov/administrative-procedure/ap-627-applications-for-abatement
• AP 629 (Appeals from Denial or Deemed Denial) — https://www.mass.gov/administrative-procedure/ap-629-appeals-from-denial-or-deemed-denial-of-application-for-abatement-to-the-appellate-tax-board
• Appellate Tax Board — https://www.mass.gov/orgs/appellate-tax-board
• Massachusetts state tax appeals overview — https://www.mass.gov/how-to/massachusetts-state-tax-appeals
• Towle v. Commissioner of Revenue, 397 Mass. 599 (1986)
• Schussel v. Commissioner of Revenue, 472 Mass. 83 (2015)
• Andover Savings Bank v. Commissioner, 387 Mass. 229 (1982)

Disclaimer: This template is provided for informational purposes only and does not constitute legal advice. An attorney licensed in Massachusetts must review and customize this document before filing. Tax statutes, regulations, deadlines, and forms change frequently; verify all authorities and deadlines before use.