More guidance issued on Massachusetts sales and meals tax changes

We advised you a couple months ago that beginning April 1, Massachusetts had enacted accelerated remittance of sales and meals tax. Few details were available at that time, but the state has recently updated its guidance so we wanted to provide you more information.

According to the state, businesses that had $150,000 or more in sales tax or meals tax liabilities or payments in calendar year 2020 are required to participate in the Massachusetts advanced meals tax and sales tax payment schedule beginning April 1, 2021.

Under this schedule, all sales or meals taxes collected from the first day through the 21st day of the current period must be remitted by the 25th day of the current period. The remaining collections for the period (the 22nd day through the end of the period) will be remitted when the sales and meals tax return for the current period is filed. The new due date for the sales and meals tax return will be the 30th day following each period instead of the current due date of the 20th day following each period.

Example:
Meals taxes collected April 1, 2021, through April 21, 2021, will be due April 25, 2021. Meals taxes collected April 22, 2021, through April 30, 2021, will be paid with the April meals tax return due May 30, 2021. Meals taxes collected May 1, 2021, through May 21, 2021, will be due May 25, 2021. The remaining meals taxes collected for May (May 22, 2021 through May 31, 2021) will be due with the meals tax return that is filed June 30, 2021.

This new schedule is a bit complex, so if you have any questions or would like Antares Group to file sales and meals tax returns on your behalf, please let us know. You can contact Robin Tignor, CPA, at rjt@antarescpas.com or Bridgett Sims at bsims@antarescpas.com.