DEPARTMENT OF REVENUE

M.G.L. pt. Part I, tit. Title II, ch. c. 14

in effect

M.G.L. c. 14, § 1 Organization of department

c. 14, § 1. Organization of department Section 1. There shall be a department of revenue, in this chapter called the department, which shall be organized into administrative units as established by the commissioner and as may be established in or assigned to the department by the secretary of administration and finance; provided, however that there shall be a division of inspectional services, independent of any other administrative unit, an office of problem resolution, a division of local services, including a bureau of local assessment and a bureau of accounts to be headed by a director of accounts, and a division of child support enforcement. Each division shall be headed by a deputy commissioner and the bureau of accounts shall be headed by a director. Each deputy commissioner, each chief of bureau and the director of the bureau of accounts shall be appointed by the commissioner with the approval of said secretary, and may be removed in like manner; each shall be a person of ability and experience, and shall devote his entire time to the duties of his office; provided, however, that the positions as deputy commissioners, chiefs of bureaus and director shall not be subject to the provisions of chapter thirty-one or section nine A of chapter thirty. Since the tax revenues that support a free and open government depend upon a tax system in which its citizens have the highest degree of public trust and confidence, it is hereby declared that the promotion of such trust and confidence in the department of revenue is a paramount public purpose; that the administration of tax laws of the commonwealth shall be free from any influence that may compromise, or appear to compromise, its objectivity in any manner whatsoever; that the duties and responsibilities assigned to such department shall be carried out with the highest standards of professionalism and ethical behavior; and that its officials and employees shall act with integrity, impartiality and equality, without regard to political concerns. It is hereby further declared that the provisions of this chapter be interpreted and administered in a manner that will foster these goals; that such department attract skilled and proficient personnel through the development and continuing implementation of career advancement and promotion exclusively on the basis of excellence, and that both the public and the employees of such department be made clearly and unequivocally aware of the necessarily high standards of conduct required by and applicable to the administration of the tax laws. The commissioner may designate a competent employee in the bureau of accounts to perform the duties of the director of accounts in case of his absence, death or disability; and notes of counties, towns and districts, when certified by such employee, shall have the same validity as if certified by the director. There shall be within the department of revenue, but not subject to its control or supervision, the appellate tax board established by section one of chapter fifty-eight A.

M.G.L. c. 14, § 1A Division of child support enforcement

c. 14, § 1A. Division of child support enforcement Section 1A. There shall be within the department of revenue a division of child support enforcement headed by a deputy commissioner, and such other administrative units as may be established in or assigned to said division from time to time by the commissioner. Said deputy commissioner shall be appointed by the commissioner with the approval of the secretary of administration and finance, and may be removed in like manner, shall be a person of ability and experience and shall devote his entire time to the duties of his office. Said position shall not be subject to the provisions of chapter thirty-one or section nine A of chapter thirty. Said division shall be a separate administrative unit within the department, operating independent of and apart from the operational state and local tax or finance units therein. Said division shall be provided with such resources as may be necessary to implement the provisions of chapter one hundred and nineteen A. The commissioner of revenue shall have authority to delegate any child support enforcement powers or duties assigned to him under any provision of law to the IV–D agency. The commissioner may appoint and remove such additional assistants, technical consultants, contractors and other persons, may engage such other technical, contractual and other assistants as the work of said division may, from time to time, require and may develop and maintain a data processing installation exclusively for the automated collection, disbursement and data systems of said division.

M.G.L. c. 14, § 2 Commissioner; appointment; removal; bond; salary

c. 14, § 2. Commissioner; appointment; removal; bond; salary Section 2. The commissioner of revenue, in this chapter called the commissioner, shall be appointed by the secretary of administration and finance, with the approval of the governor, and may be removed in like manner; the commissioner shall be a person of ability and experience, shall devote full time to his duties and shall not hold any other salaried public office, or engage in any business or profession for profit during his incumbency; his entire time to the duties of his office, and shall perform such functions as said secretary shall from time to time assign to him; provided, however, that the position of commissioner shall not be subject to the provisions of chapter thirty-one or section nine A of chapter thirty. The commissioner shall give to the state treasurer a bond for the faithful performance of his official duties in a penal sum and with sureties approved by the governor. The commissioner shall receive a salary of thirty-five thousand fifty-three dollars.

M.G.L. c. 14, § 3 Commissioner's duties

c. 14, § 3. Commissioner's duties Section 3. The commissioner shall be responsible for administering and enforcing all laws which the department is or shall be required to administer and enforce. He shall be the executive and administrative head of the department, and each division, bureau, section and district office thereof shall be under his direction, control and supervision. The commissioner shall assign to all officials, agents, clerks and other employees of the department their respective duties, and may transfer them. He may from time to time authorize any official of the department to exercise in his name any power or to perform in his name any duty which is or shall be assigned to him by any provision of law, and may at any time revoke any such authority. He may from time to time designate such employees of the department as he deems expedient as deputy collectors. Such deputies shall give bond for the faithful performance of their duties in such sum and in such form and subject to such conditions as he may prescribe, shall have all the powers of collectors under chapter sixty, and shall serve without pay except for their regular compensation as employees of the department. The commissioner shall establish offices of the department in jurisdictions outside the commonwealth for the purpose of administering and enforcing the tax laws of the commonwealth, including the conduct of audit and compliance activities. Notwithstanding the provisions of section four, positions assigned to offices of the department outside the commonwealth shall not be subject to the provisions of chapter thirty-one, sections nine A and forty-five of chapter thirty or chapter one hundred and fifty E. The salaries of such positions shall be determined by the commissioner subject to the approval of the secretary of administration and finance.

M.G.L. c. 14, § 3A Collection services agreements

c. 14, § 3A. Collection services agreements Section 3A. For the purposes of collecting certain taxes, the commissioner is authorized to enter into agreements with one or more private persons, companies, associations or corporations doing business in the commonwealth to provide collection services within and outside the commonwealth with respect to unpaid taxes. No such agreement shall be entered into unless proposals for the same have been invited in accordance with regulations governing the procurement by state agencies of contracts of similar value. All such proposals shall be opened in public. The commissioner may reject any or all of such proposals. The commissioner shall not assign the account of any taxpayer to a private collection agency until such taxpayer has been sent a notice at least thirty days prior thereto, of the intention of the commissioner to so assign the collection of such unpaid taxes of such taxpayer. Any such agreement may provide, in the discretion of the commissioner, the manner in which the compensation for such services will be paid. Under standards established by the commissioner, such compensation shall be added to the amount of the tax and collected as a part thereof by the contractor; deducted and retained by the contractor from the amount of tax collected; or paid by the commonwealth from the amount of tax collected without further appropriation therefor. The commissioner shall, as part of his annual report under section six list all private persons, companies, associations or corporations with whom the commissioner has agreements for collection services during the fiscal year and the amount of taxes collected by and the compensation paid to each such person, company, association or corporation.

M.G.L. c. 14, § 4 Supervisory personnel; creation of departmental positions

c. 14, § 4. Supervisory personnel; creation of departmental positions Section 4. Any person appointed to any supervisory position in the department, whether or not the same shall be classified under chapter thirty-one, shall be a person with experience and skill in the field of taxation or in the field of the duties of such position. So far as feasible each appointment to each such position not so classified shall be made by promoting an employee of the department serving in a position so classified; and in such event upon termination of his service in such supervisory position such employee shall, at his request, be restored to his former position without loss of seniority and with full civil service status and rights therein; except that if such termination shall have been caused by his delinquency, his right to be so restored shall be determined in accordance with section forty-three of chapter thirty-one. No position shall be created in the department, except the positions of deputy commissioner, chief of bureau and director of accounts unless and until the same shall be classified under chapter thirty-one; provided, however, that the secretary from time to time may, upon recommendation of the commissioner of revenue and the personnel administrator, exempt from the requirements of this paragraph positions with significant supervisory duties; provided, further, however, that at no time shall there be more than twenty-five positions in the aggregate not so classified because of any such exemption or exemptions.

M.G.L. c. 14, § 5 Units of departmental divisions; statement of organization

c. 14, § 5. Units of departmental divisions; statement of organization Section 5. Within each of the divisions established in section one the commissioner shall, with the approval of the secretary, from time to time establish such branches, bureaus, sections, offices and other units as shall be necessary for efficient and economical administration of the work of the department, and, if necessary for such purpose, may with the approval of the secretary, from time to time consolidate or abolish the same. He shall prepare and keep current a general statement of such organization of the department, of the assignment of functions to its various administrative units, officials and employees, and of the established places at which and methods whereby the public may secure information or make requests. Such statement shall be known as the department's ''description of organization''. He shall file with the state secretary an attested copy of such description and of each amendment thereto, and the substance of it shall be included in each annual report he shall make to the governor and the general court.

M.G.L. c. 14, § 6 Commissioner; additional powers and duties

c. 14, § 6. Commissioner; additional powers and duties Section 6. In addition to exercising the powers and performing the duties which are or shall be assigned to the commissioner by chapters fifty-eight to sixty-five C, inclusive, and by any other provision of law, the commissioner: 1. Shall make, with the approval of the secretary, and from time to time may revise, in like manner, such reasonable regulations, not inconsistent with law, as may be necessary to interpret and enforce any statute imposing any tax, excise or fee which is or shall be assessed or collected by the commissioner, or to prescribe the procedures to be followed within the department in seeking an abatement, refund, reimbursement or other relief under such statute. In each instance such regulations shall be general in scope and subject to the requirements of section thirty-seven of chapter thirty and section two of chapter thirty A. 2. Shall prepare and submit to the governor and the general court an annual report containing data and comment on the work of the department, recommendations for legislation or other action by the governor or general court, and such other information relating to the field of taxation as may be appropriate. Such report shall be printed, and copies thereof shall be made available for public distribution. 3. Shall require that whenever the department identifies a husband and wife in any communication, document or writing intended for use outside the department, the department shall use the name of both husband and wife and shall not use a legal phrase as a substitute for either name. 4. Shall, no later than the last Wednesday of each calendar year, prepare a statement which sets forth in simple and nontechnical terms: (a) the rights of a taxpayer and the obligations of the commissioner during an audit; (b) the procedures by which a taxpayer may appeal any adverse decision of the commissioner, including administrative and judicial appeals; (c) the procedures for processing applications for abatement and filing of taxpayer complaints; and (d) the procedures which the commissioner may use in enforcing the tax laws of the commonwealth, including assessment, jeopardy assessment, levy and distraint, and enforcement of liens. The commissioner shall transmit copies of the statement required under this paragraph to the house and senate committees on ways and means and to the joint committee on taxation no later than the last Wednesday of January in each calendar year, and shall distribute the statement, or information as to where and the manner in which a copy of such statement may be obtained, to all taxpayers the commissioner contacts with respect to the determination or collection of any tax administered by him, other than by providing tax forms. The commissioner shall take such actions as he deems necessary to ensure that such distribution does not result in multiple statements being sent to any one taxpayer. 5. Shall make, with the approval of the secretary, and from time to time may revise, in like manner, such reasonable regulations as may be necessary to guarantee the prompt return to taxpayers of refunds resulting from the overpayment of taxes; to guarantee the earliest possible rendering of abatement decisions, including the requirement that refunds resulting from abatement decisions be issued to taxpayers within thirty days of such decisions. 6. Shall be allowed to participate with the division of employment and training in a program which permits employing units subject to chapter 151A to file with the department of revenue a consolidated return which includes, but is not limited to, unemployment insurance, unemployment health insurance, workforce training, income tax withholding and wage reporting information together with the required payment. 7. Shall establish written standards and procedures regarding the confidentiality and security of information disclosed by the commissioner to other agencies or entities, whether the disclosure is by means of an interdepartmental service agreement, contract or otherwise, and may suspend or decline to initiate the disclosure of the information if, in the commissioner's judgment, the agency or entity has not fully complied with all standards and procedures or is unable to so comply. 8. Shall prepare and submit a bimonthly report of preliminary tax revenue collected each month. The commissioner shall submit these reports to the governor, the chair and ranking minority member of the house committee on ways and means and the chair and ranking minority member of the senate committee on ways and means, on or before the third business day following the fifteenth day of each month and on or before the third business day of the following month; provided, however, that the commissioner shall submit the report for June on the day after the department completes the processing of June tax revenues. 9. Shall publish on the department website, and shall update no less than quarterly, a listing of tax policy issues under development. The listing shall include a brief description of all tax policy matters, excluding letter rulings requested by individual taxpayers, on which, as of the date of publication, the commissioner reasonably anticipates issuing public guidance within the subsequent 12 months. 10. Shall maintain on the department's website an easily searchable and regularly updated list of all taxpayers licensed under section 67 of chapter 62C as a: manufacturer, wholesaler, vending machine operator, unclassified acquirer, transportation company, retailer as defined in section 1 of chapter 64C, cigar distributor or cigar retailer as defined in section 7B of said chapter 64C or electronic nicotine delivery system distributor or electronic nicotine delivery system retailer as defined in section 7E of said chapter 64C.

M.G.L. c. 14, § 7 Tax collection activities; employee evaluations; quotas

c. 14, § 7. Tax collection activities; employee evaluations; quotas Section 7. The commissioner shall not rely solely upon records of tax enforcement results to evaluate employees, nor their direct superiors, involved in tax collection activities, and shall not use such records to enforce or suggest individual production quotas or goals with respect to any such employees.

M.G.L. c. 14, § 8 Training programs

c. 14, § 8. Training programs Section 8. To promote the fair and equitable enforcement of the tax laws of the commonwealth, the commissioner shall establish annual training programs for all employees of the department of revenue, including those in managerial or supervisory positions, who work directly in tax administration, in particular those in the audit, customer service and legal bureaus. Such training shall be designed to ensure that audits are conducted on a consistent basis and that information provided to taxpayers is accurate. Further, the commissioner shall establish periodic training programs to ensure that all employees who work directly in tax administration are informed of and understand the department of revenue's policy concerning recent developments in the tax law, including the department of revenue's interpretation of recent court decisions and regulatory changes.

M.G.L. c. 14, § 12 Submission of annual or supplementary county budget and quarterly updates to division of local services

c. 14, § 12. Submission of annual or supplementary county budget and quarterly updates to division of local services Section 12. Notwithstanding any general or special law or county charter to the contrary, each county government shall submit to the division of local services the annual or supplementary budget of the county and quarterly updates on the county's budget.

M.G.L. c. 14, § 13 Low-income taxpayer clinics providing education and assistance to low-income taxpayers; grants

c. 14, § 13. Low-income taxpayer clinics providing education and assistance to low-income taxpayers; grants Section 13. (a) For the purposes of this section, the following words shall have the following meanings unless the context clearly requires otherwise: ''Low-income taxpayer'', an individual with a household income which does not exceed 400 per cent of the federal poverty level, as calculated by the United States Department of Health and Human Services. ''Qualified low-income taxpayer clinic'', a clinical program at an accredited law school, business school, accounting school or an organization described in 26 U.S.C. 501(c) and exempt from taxation under 26 U.S.C. 501(a) that does not charge a fee for services, except for reimbursement of actual costs incurred, and in which at least 95 per cent of taxpayers represented by the clinical program are low-income taxpayers. ''Qualified representative'', an individual who is authorized to practice before the department or the applicable court. (b) The commissioner may, subject to appropriation, award grants to develop, expand or support qualified low-income taxpayer clinics that provide education and assistance to low-income taxpayers seeking to file tax returns and to those engaged in disputes with the department. The commissioner, in determining whether to award a grant under this section, shall consider the number of taxpayers who will be served by the clinic, including the number of taxpayers in the geographical area who have limited English proficiency, the quality of the program offered by the qualified low-income taxpayer clinic, including the qualifications of its administrators and qualified representatives and its record in providing services to low-income taxpayers. The commissioner shall give preference in awarding grants to qualified low-income taxpayer clinics that assist taxpayers in applying for the earned income credit available under subsection (h) of section 6 of chapter 62. Upon application of a qualified low-income taxpayer clinic, the department may award multi-year grants not to exceed 3 years.

M.G.L. c. 14, § 14 Tax expenditure commission; membership; duties; reports; access to tax return information

c. 14, § 14. Tax expenditure commission; membership; duties; reports; access to tax return information Section 14. (a) There shall be a tax expenditure commission that shall examine, evaluate and report on the administration, effectiveness and fiscal impact of tax expenditures, as defined in section 1 of chapter 29, and as presented with the governor's proposed budget under paragraph 3 of section 5B of said chapter 29. (b) The commission shall be comprised of: the commissioner of revenue or the commissioner's designee, who shall serve as chair; the state auditor or the auditor's designee; the state treasurer or the state treasurer's designee; the chair of the house committee on ways and means or the chair's designee; the chair of the senate committee on ways and means or the chair's designee; the house and senate chairs of the joint committee on revenue or their respective designees; the minority leader of the house of representatives or the house minority leader's designee; the minority leader of the senate or the senate minority leader's designee; and 3 members to be appointed by the governor, who shall have expertise in economics or tax policy. The 3 members appointed by the governor shall each serve 4–year terms. (c) The commission shall use best practices and standardized criteria to evaluate: (i) the purpose, intent and goal of each tax expenditure and whether the expenditure is an effective means of accomplishing those ends; (ii) the fiscal impact of each tax expenditure on state and local taxing authorities, including past fiscal impacts and expected future fiscal impacts; (iii) the economic impact of each tax expenditure including, but not limited to, revenue loss compared to economic gain and jobs created, retained or lost as a result of the tax expenditure; (iv) the return on the investment made by the tax expenditure and the extent to which the tax expenditure is a cost effective use of resources; and (v) similar tax expenditures, if any, offered by other states and the impact of the tax expenditure on regional and national economic competitiveness. (d) The commission shall establish a schedule to review tax expenditures so that each tax expenditure shall be reviewed at least once every 5 years. The review schedule may group tax expenditures by those benefitting from the tax expenditures, the objectives of the tax expenditures or the policy rationale for the tax expenditures. The commission's review of each tax expenditure shall include the date the tax expenditure was enacted and the statutory or legal citation. (e) Biennially, not later than March 1, the commission shall file a report of its findings and its recommendations to the clerks of the house of representatives and senate, the chairs of the house and senate committees on ways and means and the chairs of the joint committee on revenue. The report shall include all information required to be reviewed by this section and recommendations. The report shall be made available electronically and prominently displayed on the official website of the department of revenue. (f) The commission shall have access to information, including aggregate tax return information and related documents maintained by the department of revenue, necessary for the performance of the commission's duties under this section but excluding information provided to the commonwealth by other federal and state tax agencies where such access is prohibited by law; provided, however, that tax returns and related documents shall not include a taxpayer's personal identifying information and such returns and documents shall be confidential and exempt from disclosure as a public record under section 7 of chapter 4 and under chapter 66. The commission, in collaboration with the department of revenue, shall adopt policies and procedures to ensure taxpayer confidentiality.

Source: Massachusetts General Court (malegislature.gov)URL: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleII/Chapter14Fetched: 10/20/2026