As the tax filing deadline nears, the Department of Revenue would like to offer these important reminders:

Filing Threshold

All taxpayers who were legal residents of Massachusetts with gross income of more than $8,000 must file a Massachusetts income tax return, Form 1. If your gross income was $8,000 or less, you do not need to file a return; however, you should file to claim a refund if any Massachusetts tax was withheld. Part-year residents who received Massachusetts gross income in excess of $8,000 during the taxable year also must file a Massachusetts income tax return as a part-year resident on Form 1-NR/PY. If you did not live in Massachusetts but received Massachusetts source income in excess of your personal exemption amount multiplied by the ratio of your Massachusetts income to your total income, you must file a Massachusetts income tax return as a nonresident on Form 1-NR/PY. For more information on determining resident status, see TIR 95-7.

Automatic Extensions

DOR has eliminated the need to file Form M-4868 for taxpayers that owe no money with their extensions. Income filers who are paying $5,000 or more with their extensions are mandated to file electronically. For more information on this change to income and corporate extension requirements, please see TIR 06-21.

File Electronically

As always, DOR encourages you to take advantage of the benefits of e-filing your return. DOR's e-filing programs walk you through completing your return step-by-step and do all the calculations for you, eliminating math errors or missing schedules; and you receive immediate confirmation that your return was accepted. Refunds for e-filed returns are issued, on average, in three days, and you may opt to have your refund deposited directly into you bank account. Payments also can be made through Electronic Funds Withdrawal.

Payment Vouchers

If you are making a tax payment by check, be sure to complete Form PV, Massachusetts Income Tax Payment Voucher, and include it with your return. The payment voucher is frequently forgotten when taxpayers mail in their tax forms. Form PV is necessary to ensure proper crediting of your account.

Small Payment Agreements

If you cannot pay the full amount of tax due, you should pay as much of your tax liability as you can with your return. You will receive a bill from DOR for the remaining amount due, plus interest and penalties. If the amount of the bill is less than $5,000 and you still cannot pay it in full, you must apply for a small payment agreement with DOR in order to avoid collection activities. Setting up a small payment agreement will allow you to make monthly payments within a set time period to meet your unpaid liability. Do not mail a request for a payment agreement with you return. You can apply for a Small Payment Agreement through the Web Services for Income section of the DOR website, or by calling Customer Service at 617-887-MDOR, or toll-free in Massachusetts at 800-392-6089. - © 2007 Commonwealth of Massachusetts