Composite Returns

(a) Qualified Electing Non-Resident Team Member's Statement . Each qualified electing non-resident team member must sign under penalties of perjury a statement affirmatively stating such team member's qualifications and election to file a composite return. The statement must include the following information:

1. the name and taxpayer identification number of the professional athletic team; 2. the team member's taxpayer identification number and the exact address of the team member's principal place of residence; 3. an acknowledgment of the team member's obligation to file a return, make estimated tax payments if required, and pay the team member's pro rata share of any penalty and interest due for any underpayment of estimated taxes; 4. a statement of waiver of the right to claim any deductions, exemptions, and credits allowable under M.G.L. c. 62, §§ 3, 5, and 6; and 5. a power of attorney authorizing the authorized return signer to represent the qualified electing non-resident team member in making, executing, and filing the composite tax return, tax payments and estimated tax payments. Attaching a properly completed Massachusetts Power of Attorney Form M-2848 to the qualified electing non-resident team member's statement will fulfill the power of attorney authorization requirement.

(b) Composite Returns . The composite return shall be filed on a Massachusetts Non-Resident Individual Income Tax Return (Form 1-NR/PY), with a composite Massachusetts Schedule E-NR/PY attached. The authorized return signer shall indicate clearly and conspicuously at the top of each form or schedule filed that the form or schedule is a composite form or a composite schedule. The total Massachusetts gross income reported on the composite Form 1-NR/PY shall be the sum of all the qualified electing non-resident team members' Massachusetts source professional athletic team income. Team members included in the composite return filing must have the same taxable year.

(c) Attachments . The authorized return signer shall attach to the composite return:

1. a statement signed by the authorized return signer under penalties of perjury, certifying that each qualified electing non-resident team member included in the composite return has executed a statement which meets the requirements of 830 CMR 62.5A.2(6)(a), that those statements are on file at the professional athletic team's principal office and the address of that office, and that the authorized return signer signing the composite return is the authorized return signer authorized under power of attorney to act as agent for the qualified electing non-resident team members of the professional athletic team; and 2. a schedule of each qualified electing non-resident team member's name, tax identification number, and Massachusetts source professional athletic team income.

(d) Composite Payments of Estimated Tax . The composite payments of estimated tax shall be made on Massachusetts Estimated Income Tax Vouchers (Form 1-ES). The authorized return signer shall indicate clearly and conspicuously on the form that the form is a composite estimated tax payment. Estimated tax payments made by individual members of a professional athletic team cannot be credited against tax due with the composite return. Individual members of a professional athletic team who have made such payments with respect to a taxable year and desire to participate in a composite return filing for that year, may request a refund of their individual estimated tax payments. The request must be made in writing to the Massachusetts Department of Revenue, Customer Service Bureau, Attn: Composite Return Refund Request. The written request must state that the taxpayer is electing to participate in a composite filing for the taxable year. The professional athletic team filing the composite form must be clearly identified by name, address and federal identification number. The application will not be considered complete until the composite return is filed with the Department. A copy of the composite return should be attached to the refund request where available.

(e) Extension of Time to File . The qualified electing non-resident team members of a professional athletic team may request an extension of time to file the composite return. An application for extension of time to file a composite return must include a schedule listing the qualified electing non-resident team members and their tax identification numbers. The authorized return signer shall indicate clearly and conspicuously on the application that the form is a composite application for extension of time to file a Massachusetts composite income tax return. If granted, the extension of time to file shall apply only to qualified electing non-resident team members who were included in the application for an extension of time to file and are included in the composite return.

(f) Due Dates . The following due dates apply to 830 CMR 62.5A.2(6):

1. To be included in a composite return, a qualified electing non-resident team member must file the statement electing to be included in the composite return with the professional athletic team before the due date, without any extensions, of the composite return. 2. A composite return is due on the same date that the return of an individual would be due, including extensions granted under M.G.L. c. 62C, § 19.

3. Composite payments of estimated tax are due on April 15 th of the taxable year, June 15 th of the taxable year, September 15 th of the taxable year, and January 15 th of the following taxable year.

(g) Filing Address . The authorized return signer shall mail the composite return and composite payments of estimated tax in accordance with the filing instructions for the Massachusetts Non-Resident Individual Income Tax Return (Form 1-NR/PY) and Massachusetts Estimated Income Tax Vouchers (Form 1-ES). The authorized return signer must indicate clearly and conspicuously on each form that it is a composite form.

(h) Special Rules . 830 CMR 62.5A.2(6)(h)1. through 4. applies to composite returns and composite payments of estimated tax:

1. The filing of the composite tax return and composite payments of estimated taxes will be treated as satisfying the obligation of each qualified electing non-resident team member to file a tax return and to make estimated tax payments under M.G.L. c. 62C, § 6, and M.G.L. c. 62B, § 13, respectively. 2. The authorized return signer is merely an agent for the qualified electing non-resident team members of a professional athletic team and each qualified electing non-resident team member is personally responsible for timely filing of returns and payment of such team member's tax liabilities. Non-resident members of a professional athletic team are subject to the same requirements for filing tax returns and the same penalties for failure to file or failure to pay their tax as other taxpayers. 3. A non-resident taxpayer has the right to file an individual amended return. The Commissioner retains the right to require the filing of an individual non-resident personal income tax return by any of the qualified electing non-resident team members. This ordinarily will not affect the validity of the original composite return for the taxable year to which the individual return required by the Commissioner relates. 4. A professional athletic team may file an amended composite return on behalf of electing qualified non-resident team members only if it timely filed an original composite return on behalf of these members under the provisions of 830 CMR 62.5A.2.