Letter to Massachusetts Department of Revenue on Audit Guidelines for Determining When Investment Management is a Trade or Business for Purposes of State Tax Law

February 04, 2010

From: MFA, Stuart Kaswell


Kevin Brown, Massachusetts Department of Revenue

MFA submitted a letter to the Massachusetts Department of Revenue seeking assistance to clarify the Departments audit guidelines for determining when investment management is a trade or business for the purposes of Massachusetts tax law. MFA sought this clarification because of the increased uncertainty among our Massachusetts members regarding the appropriate standards to use when determining whether their investment management activities are properly regarded as constituting a trade or business.