schirallicpa Posted April 2, 2008 Report Share Posted April 2, 2008 Client has been member of Mass LLC 1065 and gets K-1 for number of years, including the Mass K-1. K-1 has always shown some income. Has never filed a Mass return. Was previously a NH resident, now a NY resident. Any reason why I don't need to file a Mass return? Other than it will piss off the client to have to pay Mass tax, and may cause Mass to look back? Any help today would be greatly appreciated.... Thanks. Quote Link to comment Share on other sites More sharing options...
Catherine Posted April 2, 2008 Report Share Posted April 2, 2008 Massachusetts requires non-residents to pay Mass tax on income earned from Mass sources. This very specifically DOES include partnership income. It may tick off your client, and Mass might then look back, but it's what is required. Catherine Quote Link to comment Share on other sites More sharing options...
schirallicpa Posted April 2, 2008 Author Report Share Posted April 2, 2008 Thank you Catherine! Thats what I thought. Quote Link to comment Share on other sites More sharing options...
schirallicpa Posted April 2, 2008 Author Report Share Posted April 2, 2008 Hold on - there's now more: He tells me today that the income is not Mass sourced, it is Italy sourced! And the address of Mass is only because that is where his partner resides. Hmmmm.... Quote Link to comment Share on other sites More sharing options...
Catherine Posted April 2, 2008 Report Share Posted April 2, 2008 Hold on - there's now more: He tells me today that the income is not Mass sourced, it is Italy sourced! And the address of Mass is only because that is where his partner resides. Hmmmm.... Extend the return and figure it out later. Don't you just _love_ these late complications! And how the income turns out to be Italy-sourced only _after_ you tell him he has to file in Mass.... Catherine Quote Link to comment Share on other sites More sharing options...
schirallicpa Posted April 2, 2008 Author Report Share Posted April 2, 2008 Oh they have a beauty of a return anyway - they drew their IRA's to pay for a $70000(!!!) wedding and now have all that extra tax. She can't find last years return because they moved. Can't find moving expenses. Didn't know she had to change her last name with SS. Want to file separately because she owes NYS a ton of money (not that they are going to have refund anyway). Have house in NH (thankfully no filing in NH) that takes a loss. And I believe they won't get any benefit from that because filing separately and income is too high (because of IRA distribution!!) ..... I have to take a quick refresher on the 6198 and 8582. YUK!!! Quote Link to comment Share on other sites More sharing options...
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