Sulmonte and Frenier, LLP

02/06/2025

The Massachusetts DOR reported January tax collections of $4.1 billion, surpassing expectations by $406 million (11.0%) and exceeding January 2024 collections by $505 million (14.1%).

Year-to-date revenue for FY25 now stands at $23.36 billion, reflecting an 8.9% increase over the same period in FY24 and 2.5% above benchmark projections. January is historically a key revenue month due to quarterly estimated tax payments.

Key Figures:
• Income tax collections: $2.9 billion
• Withholding tax: $1.7 billion
• Estimated income tax payments: $1.1 billion
• Sales and use tax: $930 million
• Corporate and business tax: $93 million

12/15/2022

What are advantage of making charitable contribution from IRA?

What's a Better Tax Break: Charitable Contributions From Stock or an IRA? Donating from your IRA as a qualified charitable distribution means you won't pay any taxes on the amount donated the same way you would if you took a required minimum distribution as income. With the increased standard deduction, some taxpayers aren't getting the tax benefit from the charitable donation. *

Some basics
The rules of QCDs
A QCD must adhere to the following requirements:

You must be at least 70½ years old at the time you request a QCD. If you process a distribution prior to reaching age 70½, the distribution will be treated as taxable income.
For a QCD to count toward your current year's RMD, the funds must come out of your IRA by your RMD deadline, which is generally December 31 each year.
Funds must be transferred directly from your IRA custodian to the qualified charity. This is accomplished by requesting your IRA custodian issue a check from your IRA payable to the charity. You can then request that the check be mailed to the charity, or forward the check to the charity yourself.*

Note: If a distribution check is made payable to you, the distribution would NOT qualify as a QCD and would be treated as taxable income.
The maximum annual distribution amount that can qualify for a QCD is $100,000. This limit would apply to the sum of QCDs made to one or more charities in a calendar year. If you’re a joint tax filer, both you and your spouse can make a $100,000 QCD from your own IRAs*

* This is does not provide legal or tax advice. The information herein is general and educational in nature and should not be considered legal or tax advice. Tax laws and regulations are complex and subject to change, which can materially impact investment results. We makes no warranties with regard to such information or results obtained by its use, and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information. Consult an attorney or tax professional regarding your specific situation.

10/31/2022

Tomorrow the Department of Revenue (DOR) will begin the distribution of $2.941 billion in tax refunds

in accordance with Chapter 62F, a Massachusetts law that requires tax revenue collected in excess of an annual cap to be returned to taxpayers. Refunds will be provided in proportion to Massachusetts income tax liability incurred by taxpayers in the immediately preceding taxable year – Tax Year 2021. In the coming weeks, an estimated 3 million taxpayers will receive a refund equal to 14% of their 2021 Massachusetts income tax liability. This is higher than the previously shared preliminary estimate of 13%, which was based on projections made prior to the tax extension due date of October 17, 2022.� �Refunds will be issued via direct deposit or mailed as a check. Refunds issued by direct deposit will be labeled “MASTTAXRFD”. Refunds mailed as a check will include several sentences on the check explaining Chapter 62F and why the recipient is receiving a refund. Approximately 500,000 refunds will be distributed during the first week. Approximately one million refunds will be distributed weekly thereafter until all currently eligible refunds have been distributed.� �Taxpayers who have already filed their 2021 tax return and had a tax liability will automatically receive their refund by December 15, 2022 – no action is needed. Individuals who have not yet filed their 2021 tax return but file by September 15, 2023 will be eligible to receive a refund. Such individuals, if eligible, will receive their refund automatically approximately one month after filing.� �Note that an individual’s credit may be reduced due to refund intercepts, including for unpaid taxes, unpaid child support, and certain other debts.� �Additional information about Chapter 62F taxpayer refunds, including Frequently Asked Questions and a refund estimator, can be found at www.mass.gov/62Frefunds.� �A call center is available to answer questions about 62F refunds at 877-677-9727 and is open Monday through Friday, 9am-4pm. The call center will not be able to provide exact refund amounts – however, the estimator on the FAQs page can help individuals calculate an estimate. � �About Chapter 62F�Chapter 62F is a Massachusetts law enacted by voters in 1986 via a ballot question that requires the Department of Revenue to issue a credit to taxpayers if total tax revenues in a given fiscal year exceed an annual cap tied to wage and salary growth in the Commonwealth.� �The law requires that the Department of Revenue submit a report to the State Auditor on the net state tax revenues and the allowable state tax revenues for each fiscal year by September 1st. The State Auditor then makes the determination of whether net state tax revenues exceed allowable state tax revenues – and, if so, by what amount – on or before the third Tuesday of September.� �See the State Auditor’s report for Fiscal Year 2022, which certified that net state tax revenues exceeded allowable revenues by $2.941 billion, here.� �The Chapter 62F process has been triggered once before, in 1987.� �View the full statute: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62F.

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10/27/2022

On behalf of 11,000 members of the Massachusetts Society of CPAs (MassCPAs), we oppose Ballot Question 1, the proposed constitutional amendment that would establish an additional 4% state income tax on income over $1 million.

Our members likely have different beliefs about whether, conceptually, a graduated income tax is a good idea or not, but the approach laid out in Q1 is unacceptable. Tax rates and thresholds have no business in the state constitution and tax policy should be based on sound principles, not marketing approaches. Proponents of the ballot question claim that the tax increase will only impact “those who can afford it” and that the increase will be used to fund education and transportation. Neither one of these precepts is true. Many of the “millionaires” that will be impacted are one-time millionaires who are selling small businesses or homes they have invested in over a lifetime and were counting on to fund their retirements.

Voters should not envision a tax on wealthy individuals who earn over a million dollars year after year, they should envision a tax on people’s homes, their businesses and their retirement nest eggs. As for funding transportation and education, there are no guarantees or guardrails to ensure that happens. The only guarantee based on how the amendment is written, is the money will instead go into the general fund where the Legislature ultimately decides where and how that money is spent.

Amending the Massachusetts Constitution comes with extremely high risks, even more so when it comes to mandating new taxes on a swath of taxpayers. Question 1 leaves no legislative or administrative recourse should the proposed tax have an outsized negative impact on the Commonwealth’s economic output and competitive edge. Simply put, it would take a minimum of four years to reverse or amend all the damage imposed by Question 1.

We also have concerns about the taxpayer response to this policy, especially during this transformative time in our society and economy. It has never been easier for individuals and businesses to relocate with minimal disruption to their personal and professional lives. In fact, in a recent survey, 73% of MassCPAs members reported they will be even more likely to recommend their clients consider a change in domicile if Question 1 passes. This is not just advised for the ultra-wealthy, but for small business owners and other potential one-time millionaires that would be impacted by this law.

There are many worthy discussions necessary to make the Massachusetts tax code fairer and more equitable for individuals and businesses across the Commonwealth. Question 1 does not accomplish that endeavor.

We oppose Question 1 for these reasons, and we urge you to do the same.

01/18/2021

After years of low examination rates, the IRS announced it will increase audits of small businesses: by 50 percent. This news comes during a time when complex tax law changes and economic stimulus programs in response to COVID-19 have ...

01/18/2021

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02/05/2019

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Serving the Business and Individual community for over 50 YEARS!

07/11/2018

Financial Advisor Magazine created exclusively for advisors by highly experienced editorial and publishing teams. We provide an interactive community for the Financial Advisor, Investment Advisor, Financial Planner, Financial Planning, RIA, Retirement Planning, ETFs, Alternative Investments, Investm...

07/05/2018

New tax laws just mean you need to perform some new tax planning.

Taxpayers are using donor-advised funds to take full advantage of the new tax laws.

01/04/2018

Just another day at the office.

11/21/2017

Hiring a person or a team of people to work with you on keeping diligent financial records, filing taxes, applying for loans, and planning for the long term is one of the best decisions you can make as a small business owner. One of those people is a Certified Public Accountant (CPA). A good Certified Public Accountant will bring invaluable expertise to your business, serving as an advisor as well as an accountant—and freeing your time to focus on other parts of your business.