According to a recent report in the Boston Business Journal, the 87 new auditors and tax collectors hired by the Massachusetts Department of Revenue last year have paid tremendous dividends to the Commonwealth’s coffers. According to this report by Lisa Van Der Pool, the Massachusetts Department of Revenue invested about $6 million last year and collected about $72 million in additional taxes. Nice return on investment. This article also reports that, according to the Department of Revenue, Gov. Deval Patrick has proposed that the DOR take on 14 more collectors. Click here for the full article.
As more states struggle with budgetary and other fiscal constraints, expect to see more efforts to audit and collect taxes under the current system. Our attorneys at McLaughlin & Quinn, LLC have already felt this renewed effort in both Massachusetts and Rhode Island. The numbers of new cases is at an all-time high. These state efforts are focused not just on personal and corporate income taxes, but sales and use taxes, payroll taxes, and excise taxes, such as the cigarette tax, fuels taxes and others.
Ms. Van Der Pool’s article correctly points out that everyone should pay their taxes according to the law. But, as a tax attorney I can attest that there can certainly be differing opinions as to the proper interpretation of the law. However, merely not paying any taxes, or not filing tax returns, is not the appropriate method to challenge an interpretation of the tax law.
If you have been selected for audit, if you know you owe taxes, or if you have not filed all required tax returns, and if you want to get these matters settled and behind you, you need to seek competant tax advice immediately.
Tags: Boston Business Journal, Deval Patrick, DOR, IRS and state tax collections, Massachusetts, Massachusetts Department of Revenue, Massachusetts DOR, mclaughlin & quinn, Moore McLaughlin, Rhode Island, sales tax, Thomas P. Quinn
[...] Masssachusetts increases audits of small businesses « McLaughlin … [...]