An Act relative to the state tax return filings for annuities

194th Legislature (2025-2026) Introduced by Hannah Kane and 2 co-sponsors

Bill H 3153 requires fiduciaries to file tax returns for annuities if taxable income exceeds $200, ensuring accurate reporting and timely tax compliance in Massachusetts.

Hearing rescheduled to 11/18/2025 from 10:00 AM-11:00 AM in B-1 and Virtual Hearing updated to New End Time

Purpose and Intent

Bill H 3153 aims to amend the existing tax regulations in Massachusetts concerning the filing of state tax returns for annuities. The primary goal is to clarify the responsibilities of fiduciaries—such as executors, administrators, and trustees—regarding the reporting of taxable income derived from annuities. This legislation seeks to ensure that all taxable income is reported accurately and timely, thereby enhancing compliance with state tax laws.

Key Provisions

The bill proposes the following changes to Section 6, subsection (b) of Chapter 62C of the General Laws:

Fiduciary Responsibilities: It mandates that every executor, administrator, trustee, guardian, conservator, and other fiduciaries must file an annual return if they receive taxable income exceeding $200.

Decedent's Income Reporting: If a decedent received taxable income that was not reported prior to their death, the executor or administrator is required to file a return for that income, ensuring that taxes can still be assessed within the statutory time limits.

Filing Deadlines: The bill specifies that if an executor or administrator is appointed after January 1st of any year, they must file a return for the income received by the decedent that was not reported, due by the 15th day of the fourth month following their appointment.

Final Distribution: Fiduciaries intending to make a final distribution of an estate or trust must file a return immediately prior to such distribution, reporting all income received during the year, thus ensuring that taxes are settled before assets are distributed.

Affected Parties

This bill primarily affects:
- Fiduciaries: Individuals acting on behalf of estates or trusts, including executors, administrators, and trustees.
- Beneficiaries: Individuals who may receive distributions from estates or trusts, as the bill ensures that all taxable income is reported and taxes are paid before distributions occur.

Procedural Aspects

Introduced: The bill was introduced on February 27, 2025.

Committee Referral: It was referred to the Revenue Committee on the same day.

Senate Concurrence: The Senate concurred with the bill on February 27, 2025.

Hearing Scheduled: A public hearing is set for November 18, 2025, from 10:00 AM to 1:00 PM in room A-1, allowing stakeholders to provide input on the proposed changes.

Conclusion

Bill H 3153 seeks to enhance the clarity and efficiency of tax return filings for annuities in Massachusetts. By establishing clear guidelines for fiduciaries, the bill aims to improve compliance with tax obligations, thereby benefiting the state's revenue system and ensuring fair tax practices for all parties involved.

Bill