The Massachusetts 3 Form is a tax return specifically designed for partnerships operating within the state. It provides essential information about the partnership's income, deductions, and other relevant financial details for the tax year. Completing this form accurately is crucial for compliance with state tax regulations.
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The Massachusetts 3 Form is a crucial document for partnerships operating within the state. It serves as the annual tax return for partnerships, detailing their income, deductions, and credits. When filling out this form, it is essential to use black ink and to enter the correct tax year dates, whether for a calendar year or a fiscal year. Partnerships must provide their name, federal identification number, and mailing address, along with information about their principal business activity and product or service. The form also requires details about the business's total assets and the accounting method used, whether cash or accrual. Partnerships with more than 25 partners must file electronically, and each partner must receive a Schedule 3K-1, which summarizes their share of the partnership's income, deductions, and credits. Additionally, the form includes sections for reporting gross income, ordinary income or loss, and any adjustments necessary for accurate reporting. It is important to complete all pages of the form and to mail it to the Massachusetts Department of Revenue to ensure compliance with state tax laws.
Fill out in black ink.
Massachusetts Department of Revenue
2020
Form 3
Tax year beginning
Tax year ending
Calendar year filers enter 01–01–2020 and 12–31–2020 below; fiscal year filers enter appropriate dates M M D D Y Y Y Y M M D D Y Y Y Y
NAME OF PARTNERSHIP
FEDERAL IDENTIFICATION NUMBER (FID)
MAILING ADDRESS
CITY/TOWN/POST OFFICE
STATE
ZIP + 4
C/O NAME
C/O ADDRESS
A. PRINCIPAL BUSINESS ACTIVITY
B. PRINCIPAL PRODUCT OR SERVICE
C. BUSINESS CODE NUMBER
D. DATE BUSINESS STARTED M M D D Y Y Y Y E. TOTAL ASSETS
0 0
F. Fill in if amended return (see instructions)
G. Reason for filing (fill in all that apply)
Amended return due to federal change
Technical termination
Filing Schedule TDS
Initial return
Final return
Name change
Common-trust fund
Enclosing Schedule FCI
H. Accounting method (fill in one)
Cash
Accrual
Other
I. How many Schedules 3K-1 are attached to this return? (Attach one Schedule 3K-1 for each person who was a partner at any time during tax year) . .
. . . . . . . . . . .
Note: Partnerships with more than 25 partners must file electronically. See TIR 09-18 for more information.
J. Fill in if you are a member of a lower-tier entity
. . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
. . . . .
. . . . . . . . . . . . . .
K. Fill in if this partnership is an investment partnership as defined in the Pass-Through Entity Withholding Reg., 830 CMR 62B.2.2(2). . . . . . . . . . . . . . . . . . . . . . . . . .
L. Fill in if this partnership elected out of the federal centralized partnership audit regime this tax year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1 Gross income (from worksheet in instructions). See Partnership E-File Mandate Worksheet
.1
0
2
3
4
5
6
Fill in if this partnership is engaged exclusively in buying, selling, dealing in or holding securities on its own behalf and not as a broker . . . . . . . . . . . . . . . . . . . . .
Fill in if this partnership is organized as a Limited Liability Company and treated as a partnership for federal income tax purposes . . . . . . . . . . . . . . . . . . . . . . . . . .
Fill in if this partnership is a publicly traded partnership as defined in IRC § 469(k)2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fill in if there has been a sale or transfer or liquidation of a partnership interest during the period reported on this return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income apportionment percentage (from line 46 of Income Apportionment Schedule, or 100%, whichever applies). . . . . . . . . . . . . . .6
SIGN HERE. Under penalties of perjury, I declare that to the best of my knowledge and belief this return and enclosures are true, correct and complete.
SIGNATURE OF GENERAL PARTNER
DATE
PRINT PAID PREPARER’S NAME
PAID PREPARER’S SSN OR PTIN
/
TITLE
PAID PREPARER’S PHONE
PAID PREPARER’S EIN
MAY DOR DISCUSS THIS RETURN WITH THE PREPARER?
PAID PREPARER’S SIGNATURE
IS PAID PREPARER SELF-EMPLOYED?
Yes
NAME OF DESIGNATED TAX MATTERS PARTNER
IDENTIFYING NUMBER OF TAX MATTERS PARTNER
BE SURE TO COMPLETE ALL 10 PAGES OF FORM 3. MAIL TO MASSACHUSETTS DEPARTMENT OF REVENUE, PO BOX 7017, BOSTON, MA 02204.
2020 FORM 3, PAGE 2
FEDERAL IDENTIFICATION NUMBER
7
Fill in if any partners in this partnership file as part of a nonresident composite income tax return
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If filled in, enter Federal Identification number under which the composite return is filed
. .7
Number of partners included in composite return
. . . . . . . . . . . . . . . . . . . . . . . . .
8
Fill in if this partnership is under audit by the IRS, or has been audited in a prior year
9
Withholding amount. Add all Schedules 3K-1, line 37
. .9
10
Payments made with composite return. Add all Schedules 3K-1, line 38
.10
11
Credit for amounts withheld by lower-tier entities. Add all Schedules 3K-1, line 39
.11
12
Payments made with a composite filing by lower-tier entities. Add all Schedules 3K-1, line 40
.12
13
14 Other income or loss (from U.S. Form 1065, Schedule K, line 11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
15 State, local and foreign income and unincorporated business taxes or excises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 16 Subtotal. Add lines 13 through 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 17 IRC § 1231 gains or losses included in line 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 18 Subtotal. Subtract line 17 from line 16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
19Adjustments (if any) to line 18. Enter the applicable line number from U.S. Form 1065 and the amount of the adjustment.
a. Line number
Amount
b. Line number
00
Total adjustments 19
20 Massachusetts ordinary income or loss. Combine lines 18 and 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 21 Net income or loss from rental real estate activities (from U.S. Form 1065, Schedule K, line 2) . . . . . . . . . . . . . . . 21
22Adjustments (if any) to line 21. Enter the applicable line number from U.S. Form 8825 and the amount of the adjustment.
Total adjustments 22
23 Adjusted Massachusetts net income or loss from rental real estate activities. Combine lines 21 and 22 . . . . . . . . . 23 24 Net income or loss from other rental activities (from U.S. Form 1065, Schedule K, line 3c) . . . . . . . . . . . . . . . . . . 24
25Adjustments (if any) to line 24. Enter the applicable line number from U.S. Form 1065 and the amount of the adjustment.
Total adjustments 25
26 Adjusted Massachusetts net income or loss from other rental activities. Combine lines 24 and 25 . . . . . . . . . . . . . 26
2020 FORM 3, PAGE 3
27
U.S. interest, dividend and royalty income, not including capital gains (from U.S. Form 1065, Schedule K, lines 5,
6a and 7)
.27
28
Interest on U.S. debt obligations included in line 27
.28
29
5.0% interest from Massachusetts banks included in line 27
.29
30
Interest (other than Massachusetts bank interest) and dividend income included in line 27
.30
31
Non-Massachusetts state and municipal bond interest
.31
32
Royalty income included in line 27
.32
33
Total short-term capital gains included in U.S. Form 1065, Schedule D, line 7
.33
34
Total short-term capital losses included in U.S. Form 1065, Schedule D, line 7
35
Gain on the sale, exchange or involuntary conversion of property used in a trade or business and held for one year
or less (from U.S. Form 4797)
.35
36
Loss on the sale, exchange or involuntary conversion of property used in a trade or business and held for one year
37
Net long-term capital gain or loss (from U.S. Form 1065, Schedule K, line 9a)
38
Long-term IRC § 1231 gains or losses not included in line 37
39
Long-term gains on collectibles and pre-1996 installment sales included in line 37
.39
40Adjustments to lines 33 through 39, including any gain or loss from Massachusetts fiduciaries. Enter the line number and amount from U.S. Form 1065 to which the adjustment applies.
Total adjustments 40
2020 FORM 3, PAGE 4
Income Apportionment Schedule
41Complete the Income Apportionment Schedule only if: there is one or more corporate or nonresident individual partners; income was derived from business activities in another state; and such activities provide that state with the jurisdiction to levy an income tax or a franchise tax.
SPECIFY WHETHER FACTORY, SALES OFFICE,
ACCEPTS
REGISTERED TO DO
FILES RETURNS
CITY AND STATE
WAREHOUSE, CONSTRUCTION SITE, ETC.
ORDERS
BUSINESS IN STATE
IN STATE
42
Tangible property
a. Property owned (averaged)
Massachusetts
Worldwide
b. Property rented (capitalized)
c. Total property owned and rented
d. Tangible property apportionment percentage. Divide Massachusetts total by worldwide total (from line 42c)
. . . . . .42d
43
Payroll
a. Total payroll
b. Payroll apportionment percentage. Divide Massachusetts total payroll by worldwide total payroll (from line 43a)
. . . . . .43b
44 Sales
a. Tangibles
b. Services (including mutual fund sales)
c. Rents and royalties
d. Other
e. Total sales
f. Sales apportionment percentage. Divide Massachusetts total sales by worldwide total sales (from line 44e)
. . . . . . 44f
45 Apportionment percentage. Add lines 42d, 43b and (44f x 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45
46Massachusetts apportionment percentage. Divide line 45 by 4. Note: If an apportionment factor is inapplicable, divide by the
number of times each applicable factor is used (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46
2020 FORM 3, PAGE 5
47Credits available
a. Taxes due to another jurisdiction (full-year residents and part-year residents only)
. . . .
.47a
b. Other credits (from Schedule CMS)
.47b
48
Credit recapture (from Schedule CRS)
.48
49
Gross receipts or sales (from Part 2, Federal Information, line 1a)
.49
50
Total income or loss (from Part 2, Federal Information, line 8)
51
Bad debts (from Part 2, Federal Information, line 12)
.51
52
Interest (from Part 2, Federal Information, line 15)
.52
53
Fill in if during the tax year the partnership had any debt that was cancelled, was forgiven, or had the terms modified
so as to reduce the principal amount of the debt
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
54
Investment interest expense (from Part 2, Federal Information, line 50b)
.54
2020 FORM 3, PAGE 6
Part 2. Federal Information
Income. From U.S. Form 1065.
Note: Include only trade or business income and expenses on lines 1a through 22. See instructions.5 Fill in oval if showing a loss 1a Gross receipts or sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1a
1b Returns and allowances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1b
1c Total. Subtract line 1b from line 1a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1c
Cost of goods sold (attach Form 1125-A)
. 2
Gross profit. Subtract line 2 from line 1c
. 3
Ordinary income or loss from other partnerships, estates and trusts (attach statement)
. 4
Net farm profit or loss (from U.S. Form 1040, Schedule F)
. 5
Net gain or loss (from U.S. Form 4797, Part II, line 17; attach U.S. Form 4797)
. 6
Other income or loss (attach statement)
. 7
Total income or loss. Combine lines 3 through 7
. 8
Deductions. From U.S. Form 1065. See instructions for limitations.
Salaries and wages (other than to partners; less employment credits)
. 9
Guaranteed payments to partners
Repairs and maintenance
Bad debts
Rent
14
Taxes and licenses
15
Interest
16a Depreciation (from U.S. Form 4562) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16a
16b Less depreciation reported on Form 1125-A and elsewhere on the return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16b
16c Total. Subtract line 16b from line 16a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16c
17 Depletion (do not deduct oil and gas depletion) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
18 Retirement plans, etc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
19 Employee benefit programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
20 Other deductions (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
21 Total deductions. Add lines 9 through 20 (do not include lines 16a and 16b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
22 Ordinary business income or loss. Subtract line 21 from line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
2020 FORM 3, PAGE 7
Part 2. Federal Information (cont’d.)
Cost of goods sold. From U.S. Form 1125-A (see instructions).
23 Inventory at beginning of year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
24 Purchases less cost of items withdrawn for personal use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
25 Cost of labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
26 Additional IRC § 263A costs (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
27 Other costs (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
28 Total. Add lines 23 through 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
29 Inventory at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
30 Cost of goods sold. Subtract line 29 from line 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Other information. From U.S. Form 1065, Schedule B.
31Type of entity filing this return (fill in one):
Domestic general partnership
Domestic limited partnership
Domestic limited liability company
Domestic limited liability partnership
Foreign partnership
REIT
Other (specify) ____________________________________________________________________________________________________
32Fill in if at any time during the tax year any partner in the partnership was a disregarded entity, a partnership (including an entity treated as
a partnership), a trust, an S corporation, an estate (other than an estate of a deceased partner) or a nominee or similar person . . . . . . . . . . . . .
33 Fill in if this partnership is a publicly traded partnership as defined in IRC § 469(k)(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
34Fill in if during the tax year the partnership had any debt that was cancelled, was forgiven, or had the terms modified so as to reduce the
principal amount of the debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35Fill in if the partnership is making, or had previously made (and not revoked), an IRC § 754 election (see instructions for details regarding an
IRC §754 election.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
36Fill in if the partnership made for this tax year an optional basis adjustment under IRC § 743(b) or 734(b). If Yes, attach a statement showing
the computation and allocation of the basis adjustment (see instructions). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
37Fill in if during the current or prior tax year the partnership engaged in a like-kind exchange or distributed any property received in a like-kind
exchange, or contributed such property to another entity (other than entities wholly-owned by the partnership throughout the tax year) . . . . . . .
Partners’ Distributive Share Items. From U.S. Form 1065, Schedule K.
Income or loss
5 Fill in oval if showing a loss
38 Ordinary business income or loss
39 Net rental real estate income or loss (from U.S. Form 8825) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
40a Other gross rental income or loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40a
40b Expenses from other rental activities (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40b
40c Other net rental income or loss. Subtract line 40b from line 40a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40c
41 Guaranteed payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
42 Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
43a Ordinary dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43a
43b Qualified dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43b
44 Royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
45 Net short-term capital gain or loss (from U.S. Form 1065, Schedule D). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
2020 FORM 3, PAGE 8
Partners’ Distributive Share Items (cont’d.)
. . . . . . . . . . . . . . . . . .46a Net long-term capital gain or loss (from U.S. Form 1065, Schedule D)
. . . . . . . . . . . . . . . . 46a
46b Collectibles (28%) gain or loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46b
46c Unrecaptured IRC § 1250 gain (attach statement). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46c
47 Net IRC § 1231 gain or loss (from U.S. Form 4797) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
48 Other income or loss (see instructions). Type ______________________________________________________ 48
Deductions
49 IRC § 179 deduction (from U.S. Form 4562) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
50a Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50a
50b Investment interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50b
50c IRC §59(e)(2) expenditures. Type _____________________________________________________________
50c
50d Other deductions (see instructions). Type_______________________________________________________
50d
Other information
51a Tax-exempt interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51a
51b Other tax-exempt income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51b
51c Nondeductible expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51c
52a Distributions of cash and marketable securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52a
52b Distributions of other property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52b
53a Investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53a
53b Investment expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53b
53c Other items and amounts (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53c
Analysis of Net Income or Loss
54Net income or loss. Combine U.S. Form 1065, Schedule K, lines 1 through 11. From the result, subtract the
sum of U.S. Form 1065, Schedule K, lines 12 through 13d, and 16p . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Individual
Exempt
Nominee /
55 Analysis by partner type
Corporate
(active)
(passive)
Partnership
organization
other
a General partners . . . . .
b Limited partners . . . . . .
2020 FORM 3, PAGE 9
Balance sheets per books
From U.S. Form 1065, Schedule L.
Assets
56 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
57a Trade notes and accounts receivable . . . . . . . . . . . . . . . . . . .
b Less allowance for bad debts . . . . . . . . . . . . . . . . . . . . . . . . .
58 Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
59 U.S. government obligations . . . . . . . . . . . . . . . . . . . . . . . . . . .
60 Federally tax-exempt securities . . . . . . . . . . . . . . . . . . . . . . . .
61 Other current assets (attach statement) . . . . . . . . . . . . . . . . . .
62a Loans to partners (or persons related to partners). . . . . . . . .
b Mortgage and real estate loans . . . . . . . . . . . . . . . . . . . . . . .
63 Other investments (attach statement). . . . . . . . . . . . . . . . . . . .
64a Buildings and other depreciable assets . . . . . . . . . . . . . . . . .
b Less accumulated depreciation . . . . . . . . . . . . . . . . . . . . . . .
65a Depletable assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b Less accumulated depletion . . . . . . . . . . . . . . . . . . . . . . . . . .
66 Land (net of any amortization) . . . . . . . . . . . . . . . . . . . . . . . . .
67a Intangible assets (amortizable only) . . . . . . . . . . . . . . . . . . . .
b Less accumulated amortization . . . . . . . . . . . . . . . . . . . . . . .
68 Other assets (attach statement) . . . . . . . . . . . . . . . . . . . . . . . .
69 Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Liabilities and capital
70 Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
– Beginning of tax year –
– End of tax year –
a.
b.
c.
d.
a.b.c.d.
71 Mortgages, notes, bonds payable in less than one year. . . . . .
72 Other current liabilities (attach statement) . . . . . . . . . . . . . . . .
73 All nonrecourse loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
74a Loans from partners (or persons related to partners). . . . . . .
b Mortgages, notes, bonds payable in one year or more . . . . .
75 Other liabilities (attach statement) . . . . . . . . . . . . . . . . . . . . . .
76 Partners’ capital accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
77 Total liabilities and capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2020 FORM 3, PAGE 10
Reconciliation of income or loss per books with income or loss per return
From U.S. Form 1065, Schedule M-1. Note: If filing U.S. Form 1065, Schedule M-3, you still must complete this section.
78 Net income or loss per books . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
79Income included in Schedule K, lines 1, 2, 3c, 5, 6a, 7, 8, 9a, 10 and 11, not recorded on books this year attach
statement). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
80 Guaranteed payments (other than health insurance) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
81 Expenses recorded on books this year not included in Schedule K, lines 1 through 13d and 16p (attach statement) 81
a Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81a
b Travel and entertainment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81b
82 Add lines 78 through 81 (do not include lines 81a and 81b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
83 Income recorded on books this year not included in Schedule K, lines 1 through 11 (attach statement). . . . . . . . . . . 83
a Federally tax-exempt interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83a
84Deductions included in Schedule K, lines 1 through 13d and 16p, not charged against book income this year
(attach statement). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
a Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84a
85 Add lines 83 and 84 (do not include lines 83a and 84a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
86 Income or loss. Subtract line 85 from line 82 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
From U.S. Form 1065, Schedule M-2.
87 Balance as of beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
88a Capital contributed: cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88a
b Capital contributed: property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88b
89 Net income or loss per books . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
90 Other increases (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
91 Add lines 87 through 90 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
92a Distributions: cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92a
b Distributions: property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92b
93 Other decreases (attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
94 Add lines 92a, 92b and 93 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94
95 Balance at end of year. Subtract line 94 from line 91 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
Filling out the Massachusetts Form 3 is a straightforward process, but attention to detail is essential. Make sure to have all necessary information at hand to avoid delays. Once completed, the form should be mailed to the Massachusetts Department of Revenue.
The Massachusetts Form 3 is a tax return specifically designed for partnerships operating in Massachusetts. It is used to report the income, deductions, and credits of the partnership for a given tax year. Partnerships must file this form to inform the Massachusetts Department of Revenue about their financial activities and to ensure compliance with state tax laws.
Any partnership that conducts business in Massachusetts must file Form 3. This includes partnerships with one or more partners, whether they are individuals or other entities. If a partnership has more than 25 partners, it must file electronically. Additionally, partnerships that have made changes to their federal tax filings or have undergone technical terminations also need to file this form.
To complete Form 3, the following information is generally required:
Additionally, any relevant financial data, such as gross income, ordinary income or loss, and adjustments, must be included.
Once Form 3 is completed, it should be mailed to the Massachusetts Department of Revenue at the following address:
MASSACHUSETTS DEPARTMENT OF REVENUE PO BOX 7017 BOSTON, MA 02204
Make sure to double-check that all sections of the form are filled out completely before mailing it to avoid any delays or issues with processing.
Using the wrong ink color: The instructions specify that the form must be filled out in black ink. Using any other color may lead to processing delays.
Incorrectly entering tax year dates: Calendar year filers must enter the dates as 01-01-2020 and 12-31-2020. Fiscal year filers should ensure they enter the correct corresponding dates.
Omitting the federal identification number: Every partnership must include its Federal Identification Number (FID). Failing to do so can result in the return being rejected.
Inaccurate business activity descriptions: Providing vague or incorrect descriptions for the principal business activity and product or service can lead to confusion and potential audits.
Not indicating the accounting method: It is essential to select an accounting method—cash, accrual, or other. Leaving this blank may raise questions about the partnership's financial practices.
Failing to attach required Schedules 3K-1: Each partner must have a Schedule 3K-1 attached. Not doing so could result in penalties or delays.
Neglecting to sign the form: The signature of the general partner is mandatory. A missing signature can lead to the form being considered incomplete.
Not providing the preparer's information: If a paid preparer assists in completing the form, their information, including SSN or PTIN, must be included. Omitting this detail can cause issues with the submission.
Failing to check the box for amended returns: If the return is amended, it is crucial to check the appropriate box. This informs the Department of Revenue that the return differs from the original submission.
Ignoring electronic filing requirements: Partnerships with more than 25 partners are required to file electronically. Not adhering to this requirement can lead to penalties.
The Massachusetts 3 Form is a crucial document for partnerships operating in the state. It is often accompanied by other forms and documents to ensure compliance with tax regulations and to provide necessary financial information. Below is a list of commonly used forms that may accompany the Massachusetts 3 Form.
Using these forms in conjunction with the Massachusetts 3 Form helps ensure that partnerships meet their tax obligations accurately and efficiently. Proper completion and submission of these documents can prevent delays and potential penalties from tax authorities.
The Massachusetts Form 3 is similar to the IRS Form 1065, which is used for partnerships to report income, deductions, gains, losses, and other tax-related information. Both forms require partnerships to provide details about their financial activities over a specific tax year. While Form 1065 is a federal document, Form 3 serves the specific needs of Massachusetts tax law. Each form includes sections for reporting income and expenses, and both require the signatures of general partners to affirm the accuracy of the information provided.
Another document comparable to the Massachusetts Form 3 is the Schedule K-1 (Form 1065). This schedule is issued to each partner in a partnership to report their share of the partnership's income, deductions, and credits. Just as Form 3 summarizes the overall financial status of the partnership, Schedule K-1 breaks down individual partner contributions and tax obligations. Both documents are essential for ensuring that partners accurately report their income on their personal tax returns.
The Massachusetts Form 3 also bears resemblance to the IRS Form 1120, which is used by corporations to report their income, gains, losses, deductions, and credits. While Form 3 focuses specifically on partnerships, Form 1120 serves corporations, highlighting differences in tax treatment. Both forms require detailed financial information and have sections for reporting various types of income, but they cater to different business structures and tax regulations.
Additionally, the Massachusetts Form 3 is similar to the IRS Form 941, which is used to report employment taxes. Both forms require businesses to report financial data related to their operations, including income and tax liabilities. However, while Form 3 is focused on partnership income and distributions, Form 941 specifically addresses payroll taxes and employee withholdings, reflecting the different aspects of business taxation.
The Massachusetts Form 3 can also be compared to the Massachusetts Form 1, which is the personal income tax return for residents. Both forms require detailed financial disclosures and serve to report taxable income to the state. While Form 1 is for individual taxpayers, Form 3 aggregates the financial information of a partnership, illustrating how different entities report their financial activities to comply with state tax laws.
Moreover, the Massachusetts Form 3 shares similarities with the IRS Form 1065-B, which is used by electing large partnerships. Like Form 3, this form is designed for partnerships but includes specific provisions for larger entities. Both forms require detailed reporting of income and expenses, but Form 1065-B offers additional options and requirements tailored to larger partnerships, reflecting their unique tax situations.
Lastly, the Massachusetts Form 3 is akin to the IRS Form 990, which is used by tax-exempt organizations to provide detailed financial information. While Form 3 focuses on partnerships and their income, Form 990 serves a different purpose by ensuring transparency and accountability for non-profit organizations. Both forms require comprehensive financial disclosures, although they cater to different types of entities and regulatory frameworks.
When filling out the Massachusetts Form 3, it’s essential to follow specific guidelines to ensure accuracy and compliance. Here’s a list of what you should and shouldn’t do:
This is not true. The Massachusetts 3 form is required for all partnerships operating in Massachusetts, regardless of size. Even small partnerships must file this form if they have any income or activity in the state.
The form specifically instructs filers to use black ink. This ensures clarity and readability when the form is processed by the Massachusetts Department of Revenue.
While a federal identification number is required, all partnerships must file the Massachusetts 3 form if they engage in business activities within the state, even if they do not have an FID.
Only partnerships with more than 25 partners are required to file electronically. Smaller partnerships may still file a paper form if they choose.
If a partnership has any partners, it must attach a Schedule 3K-1 for each partner, even if they were not active during the tax year. This is crucial for accurate reporting.
The form must be filed by the due date, which is generally the same as the federal tax return deadline. Late filings may incur penalties.
While amending a return can seem daunting, it is straightforward. Filers simply need to indicate that they are submitting an amended return and provide the necessary corrections. Clear instructions are provided in the form's guidelines.
Here are some key takeaways regarding the Massachusetts Form 3: