Form of List - Business Owners

WHO MUST FILE A RETURN: 

This Form of List (State Tax Form 2) must be filed each year by all individuals, partnerships, associations, trusts, corporations, limited liability companies, and other legal entities that own or hold taxable personal property on January 1 unless required to file another local or central valuation personal property return as follows. 

Pipeline and telephone and telegraph companies that own taxable personal property subject to central valuation under G.L. c. 59, §§ 38A or 41 must file a personal property return with the Massachusetts Department of Revenue listing such property. Any other taxable personal property owned by such pipeline or telephone and telegraph companies must be reported on this return. 

Taxable personal property of mobile wireless telecommunications companies must be reported on State Tax Form 2MT. 

Individuals who own or hold household furnishings and effects not situated at their domicile on January 1 must file State Tax Form 2HF. Business or other taxable personal property owned by individuals must be reported on this return. Literary, temperance, benevolent, charitable, or scientific organizations that may be exempt under G.L. c. 59, § 5 Clause 3 must file State Tax Form 3ABC listing all property they own or hold for those purposes on January 1.

WHEN AND WHERE THE RETURN MUST BE FILED: 

This return must be filed by March 1 with the board of assessors in the city or town where the personal property is situated on January 1. If the property has no situs on January 1, it must be listed on a return filed with the assessors in the city or town where you are domiciled (legal residence or place of business). A return is not considered filed unless it is complete.

FILING EXTENSION: 

The board of assessors may extend the filing deadline if you make a written request and show sufficient reason for not filing on time. The latest the filing deadline can be extended is the last day for applying for abatement of the tax for the fiscal year to which the filing relates.

AUDITS: 

The board of assessors may audit your books, papers, records, and other data in order to determine whether you have accurately reported all taxable personal property. Any audit will be conducted within 3 years of the date your return is due or filed, whichever is later. The assessors may assess taxes on unreported or inaccurately reported taxable personal property discovered by the audit within 3 years and 6 months of the date your return is due or filed, whichever is later.

PENALTY FOR NOT FILING, FILING LATE, OR NOT COMPLYING WITH AUDIT: 

If you do not file a return for the fiscal year and comply with audit requests for books, papers, records, and other data, the assessors cannot abate for the overvaluation of the personal property for that year. 

If your return is not filed, or you do not comply with audit requests, on time, the assessors can only abate if you show a reasonable excuse for the late filing or the tax assessed is more than 150% of the amount that would have been assessed if the return had been timely and properly filed. In that case, only the amount over that percentage can be abated.

USE OF AND ACCESS TO RETURN AND RECORDS: 

The information in the return is used by the board of assessors to determine the taxable or exempt status of your personal property and, if taxable, its fair market value. 

You may also be required to provide the assessors with further information about the property in writing and asked to permit them to inspect it. 

Personal property information listed in Schedules A-I, or obtained during an audit, is not available to the public for inspection under the state public records law. 

It is available only to the assessors and the Massachusetts Department of Revenue for purpose of administering the tax laws.