355SC: Security Corporation Excise Return (2024)
Massachusetts · Massachusetts DOR · Used for tax years 2024
Form 355SC is the 2024 Massachusetts Security Corporation Excise Return. It reports income, calculates the corporation's excise, and accounts for credits, payments, and any balance due or overpayment. This return must be filed electronically; paper returns are not accepted.
Who files this form
Form 355SC is Massachusetts’s Security Corporation Excise Return for tax year 2024. It includes reporting options for Class 1 and Class 2 security corporations.
What you'll need
Have the following information and supporting records ready:
- The corporation’s federal identification number, business code, addresses, incorporation details and security corporation classification date.
- An exact copy of U.S. Form 1120 or 1120-RIC, including all applicable schedules and forms supporting the Massachusetts excise. These must be available to the Department of Revenue upon request.
- A detailed explanation of any changes or amendments to U.S. amounts.
- Income information, including state and municipal bond interest not included in total U.S. income, and a schedule supporting income adjustments.
- Schedule CMS if reporting credits, plus records of estimated tax payments, extension payments and prior-year overpayments applied to this year.
- Beginning- and end-of-year balance sheet information for Schedule A, with supporting schedules where requested.
If you answer Yes to the question about continuing to qualify as a security corporation, enclose a statement explaining changes in corporate activity since the corporation last qualified.
How to file
File Form 355SC electronically. Paper returns will not be accepted.
For electronic filing questions, call 617-887-6367. See the Department of Revenue’s electronic filing and payment requirements for more information. The form also refers filers to TIRs 16-9 and 21-9.
Common mistakes
- Sending a paper return: This return is e-file only. Paper returns will not be accepted.
- Not using whole dollars: The excise computation requires the whole dollar method.
- Prorating the minimum excise: The form says the minimum excise cannot be prorated.
- Counting a prior-year overpayment twice: Do not include the amount on line 14 in estimated tax payments on line 15.
- Using line 17 on an original return: The payment-with-original-return line is only for amended returns.
- Leaving federal changes unexplained: Any changes or amendments to U.S. amounts must be explained in detail.
Questions people ask
How is Massachusetts gross income calculated on this form?
Add total U.S. income on line 1, state and municipal bond interest not included in line 1 on line 2, and income adjustments on line 3. Enter the total on line 4.
Which excise calculation applies to each class?
For Class 1, multiply line 4 by .0033. For Class 2, multiply line 4 by .0132. After credits, compare the result with the minimum excise and use whichever is larger on line 11.
Can an overpayment be applied to next year?
Yes. Enter the amount of the line 18 overpayment to credit to next year on line 19. The remaining amount goes on line 20 as the refund.
When should the digital asset oval be filled in?
Fill it in if, at any time during the tax year, the corporation received a digital asset as a reward, award or payment for property or services, or sold, exchanged or otherwise disposed of a digital asset or a financial interest in one.