Section 26 Deemed Repatriation Statute of Limitations

Said chapter 62C of the General Laws is hereby further amended by inserting after section 30B, as inserted by section 31 of said chapter 227, the following section:-

Section 30C. (a) If the commissioner determines, from the verification of a return or otherwise, that the full amount of tax on deemed repatriated income has not been assessed or is not considered to be assessed under chapter 62 or chapter 63, the commissioner shall, notwithstanding the 3 year limitation in section 26, assess an additional tax upon such income, if any, with interest as provided in section 32, within 6 years of the later of (1) the date the return was filed or (2) the date the return that was required to include such income was required to be filed. For purposes of this section, the term "deemed repatriated income" shall mean any amount included in federal gross income under section 951(a) of the Code by reason of section 965 of the Code, without regard to the deduction available under section 965(c) of the Code, to the extent such amount is required to be included in Massachusetts gross income under chapter 62 or 63. An assessment under this section shall be made in the manner provided in section 26; provided, however, that the 6-year period for making an assessment shall be suspended during the period of time that the taxpayer has a bankruptcy case pending under the appropriate chapters of Title 11 of the United States Code. An offset to the additional proposed tax on deemed repatriated income may be considered only if such offset is directly attributable to the deemed repatriated income. An offset, if approved, may reduce or eliminate the additional tax due, but in no case shall the offset result in a refund of tax that would otherwise be barred as untimely.

(b) Any person aggrieved by the assessment of a tax on deemed repatriated income under chapter 62 or chapter 63, may apply in writing on a form approved by the commissioner, for an abatement thereof (1) within 6 years from the date the return that included such income was filed, taking into account paragraph (a) of section 79; (2) within 2 years from the date the tax was assessed or deemed to be assessed; or (3) within 1 year from the date that the tax was paid, whichever is later. An abatement under this section shall be made in the manner provided in section 37; provided that the claims in such abatement must be directly attributable to tax on deemed repatriated income; and provided further that section 36 shall not limit refunds or credits otherwise permissible under this section. The commissioner may offset against the proposed abatement any additional tax on deemed repatriated income. An offset may reduce or eliminate the abatement, but shall not result in an assessment that would otherwise be barred as untimely.

(c) For purposes of this section, the phrase "directly attributable to deemed repatriated income" shall mean any changes, adjustments or corrections to a person's tax on deemed repatriated income, as that term is defined above.

For purposes of this section, the term ''person'' shall include any individual, partnership, trust or any other fiduciary subject to taxation under chapter 62, or any corporation subject to tax under chapter 63.

For purposes of this section, the term "Code" shall mean the Internal Revenue Code, as amended and in effect for the taxable year.

(d) The commissioner may promulgate rules or regulations to implement this section.

This section extends the statute of limitations for abatement filings and assessment adjustments related to deemed repatriation income.