TIR 13-17: Repeal of the Computer and Software Services Tax

Written by Anthony D on . Posted in Billing Support

So, remember that Tax Legislation that we sent you a letter about? Well it’s been revoked after a whopping 2 months and some change. We’re truly concerned about anyone who was negatively affected by this law. We are offering a “tax credit” and refunds. In other words you can take the additional taxes you paid us and roll them into a credit. Our automatic billing system has the amounts tabulated in advance, please let us know how you would like to proceed. As always we thank you for being loyal customers of BWG.

And now, some words from the gov’t..

READ IT HERE

TIR 13-17: Repeal of the Computer and Software Services Tax

Introduction:  Recent legislation, St. 2013, c. 95, An Act Repealing the Computer and Software Services Tax, retroactively repeals provisions in An Act Relative to Transportation Finance, St. 2013, c. 46, which amended Chapters 64H and 64I of the General Laws to apply the sales and use tax to certain services relating to computer system design and to modification, integration, enhancement, installation, or configuration of standardized or prewritten software.  St. 2013, c. 46, §§ 48, 49, 89.  Those changes were effective July 31, 2013 and have now been repealed retroactively to that date.

Vendors that Have Collected but Not Remitted Tax:  Vendors that have collected but not remitted tax on software and computer services described in TIR 13-10 must make reasonable efforts to return that tax to the retail customers from whom the tax was collected.Vendors that Have Filed Returns and Remitted Tax:  Vendors that have collected and remitted tax on software and computer services described in TIR 13-10 must electronically file abatement applications no later than December 31, 2013 by doing the following:1.  Login to the vendor’s WebFile for Business user account2.  Select “File, Pay or Amend Returns”3.  Select “Amend a Return”4.  Click “Amend” for the period 8/31/135.  Complete and submit the amended return6.  Print the confirmation page that results and fax it to 617-660-7247 for expedited processingOther than the shortened statute of limitations provided in St. 2013, c. 95, for filing the abatement application, all other provisions of G.L. c. 62C, § 37 and 830 CMR 62C.37.1, governing abatement applications will apply, including the need to provide supporting documentation if requested by the Department.  Such substantiating documentation may include sample invoices that would show that an abatement request relates solely to software and computer services transactions, as opposed to sales of standardized or prewritten software licenses or other taxable transactions.  Further, no actual refund will be made until the vendor establishes that the tax has been repaid or credited to the retail customer. See 830 CMR 62C.37.1(6)(b).Vendors that Have Filed Returns but Not Remitted Tax:  Vendors that have collected tax on software and computer services described in TIR 13-10, filed a return, but not remitted the tax shown due on the return to DOR must (1) make reasonable efforts to return the tax to the retail customers from whom the tax was collected and (2) electronically file abatement applications no later than December 31, 2013 in order to eliminate the self-assessment of tax by doing the following:1.  Login to the vendor’s WebFile for Business user account2.  Select “File, Pay or Amend Returns”3.  Select “Amend a Return”4.  Click “Amend” for the period 8/31/135.  Complete and submit the amended return6.  Print the confirmation page that results and fax it to 617-660-7247 for expedited processingOther than the shortened statute of limitations provided in St. 2013, c. 95, for filing the abatement application, all other provisions of G.L. c. 62C, § 37 and 830 CMR 62C.37.1, governing abatement applications will apply, including the need to provide supporting documentation if requested by the Department.  If a taxpayer has filed a return showing tax due and fails to file for an abatement, billing and collection activity may result.Sales/Use Tax on Standardized or Prewritten Software Unchanged:  Longstanding statutory and regulatory rules regarding sales and use tax on standardized or prewritten software and on computer hardware remain in effect.  Sales and use taxes remain fully due and payable on tangible personal property, which is defined to include transfers of the use or access to standardized or prewritten software (whether such software or the use thereof is transferred in tangible form, electronically, or in any other manner).  See 830 CMR 64H.1.3, as amended in 2006, for the applicable rules.  The Department will be issuing additional guidance in the near future on determining whether a transaction is a taxable sale of standardized or prewritten software or a non-taxable service.Effect on DOR Public Written Statements:  The following public written statements of the Department are hereby revoked to the extent they relate to the now repealed tax:

  • TIR 13-10, Sales and Use Tax on Computer and Software Services Law Changes Effective July 31, 2013 [1]
  • Working Draft TIR 13-XX: Further Guidance Regarding the Scope of Sales and Use Tax on Computer and Software Services
  • TIR 13-14: Extension of Due Date for First Reporting of Sales and Use Tax on Computer and Software Services
Frequently Asked Questions and other informal guidance from the Department regarding the tax on the computer and software services that were subject to the repealed tax are also hereby revoked.

/s/Amy Pitter

Amy Pitter Commissioner of RevenueAP:MTF:eclSeptember 30, 2013TIR 13-17

New Tax on Computer Consulting Services

Written by Anthony D on . Posted in Billing Support

Well, it’s finally happened, and we want you to be the first to know: all computer consulting and software will be taxed, starting tomorrow, July 31st, 2013.Check out the full article here on the Mass.gov site.Here is a snippet of the opening paragraph.

TIR 13-10: Sales and Use Tax on Computer and Software Services Law Changes Effective July 31, 2013

The following is a Technical Information Release concerning recently-enacted sales and use tax changes effective July 31, 2013. The purpose of this TIR is to announce the statutory changes and their effective date, and to provide initial guidance. However, the Department also solicits input from affected taxpayers regarding application of the sales/use tax on computer system design services and software modification services to particular transactions or business practices. DOR anticipates that further guidance will be provided in the future, including an amendment to Regulation 830 CMR 64H.1.3.If you wish to submit comments or suggestions regarding the application of sales and use taxes to these computer/software services, please send them to rulesandregs@dor.state.ma.us . DOR also anticipates that there will be opportunity for public comment on a working draft of the regulation amendment before it is formally proposed.

How Do I Change My Credit Card Details?

Written by Anthony D on . Posted in Billing Support

 If your credit card has expired and your invoices are bouncing back to us, dont worry – we’re not on our way to your home with pitchforks and torches.  Or are we?In either case, you may want to re-instate your service by keeping current on your account, otherwise
  • your service may automatically discontinue
  • you may be subject to reinstatement or setup fee
Keep your account current by keeping your credit card up to date.Some times credit cards decline for reasons as simple as being old.If your credit card has
  • expired
  • recently changed
  • you want to update it for sky miles
  • or you want to simply change your credit card for any other reason
Please login and then click this link:http://my.bostonwebgroup.com/clientarea.php?action=creditcard
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