⇒

Fill Your Massachusetts 3 Form

The Massachusetts Form 3 is a tax document specifically designed for partnerships that need to report their income, deductions, and gains to the Massachusetts Department of Revenue. Filled out in black ink, it provides a structured format for partnerships to communicate their financial activities over the fiscal or calendar year, addressing everything from the number of partners to the principal business activities undertaken. For partnerships ready to comply with state tax requirements, filling out the Form 3 accurately is crucial. Click the button below to fill out the form.

Make My Massachusetts 3 Online

Table of Contents

Fulfilling the requirements of the Massachusetts Department of Revenue involves a meticulous process, especially when tackling the comprehensive 2020 Form 3. This form, designed for partnerships, requires detailed information ranging from the partnership's name and federal identification number to its principal business activities and total assets. With specific sections for tax year beginning and ending dates, the form accommodates both calendar and fiscal year filers, making it a critical document for Massachusetts partnerships navigating their tax responsibilities. Additionally, the form includes provisions for amended returns, throwing light on various scenarios necessitating such amendments, be it a federal change or a technical termination. Partnerships are also required to disclose their accounting method, be it cash, accrual, or another method, which plays a pivotal role in how their financial operations are documented and analyzed for tax purposes. Significantly, the mandate for electronic filing for partnerships with more than 25 partners underscores the state's push towards digital solutions, aimed at streamlining tax filing processes. The complexity of Form 3 is further highlighted by the necessity to attach Schedule 3K-1 for each partner, alongside sections covering everything from gross income to adjustments for net income or loss from rental real estate activities. This form not only captures the essence of the partnership's fiscal health over the tax year but also complies with the nuanced requirements set by the Massachusetts Department of Revenue, ensuring tax compliance in a structured and organized manner.

Massachusetts 3 Sample

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			CITY/TOWN/POST OFFICE		STATE	ZIP + 4
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	0

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	DATE	PAID PREPARER’S PHONE			PAID PREPARER’S EIN
	/	/
MAY DOR DISCUSS THIS RETURN WITH THE PREPARER?	PAID PREPARER’S SIGNATURE		DATE		IS PAID PREPARER SELF-EMPLOYED?
Yes			/	/	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.

0 0

Ordinary income or loss (from U.S. Form 1065, line 22) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

0 0

2020 FORM 3, PAGE 2

NAME OF PARTNERSHIP

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

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	Amount

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.

a. Line number	Amount
b. Line number	Amount

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.

a. Line number	Amount
b. Line number	Amount

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

NAME OF PARTNERSHIP

FEDERAL IDENTIFICATION NUMBER

27	U.S. interest, dividend and royalty income, not including capital gains (from U.S. Form 1065, Schedule K, lines 5,			0	0
	6a and 7)		.27

28	Interest on U.S. debt obligations included in line 27		.28	0	0

29	5.0% interest from Massachusetts banks included in line 27		.29	0	0

30	Interest (other than Massachusetts bank interest) and dividend income included in line 27		.30	0	0

31	Non-Massachusetts state and municipal bond interest		.31	0	0

32	Royalty income included in line 27		.32	0	0

33	Total short-term capital gains included in U.S. Form 1065, Schedule D, line 7		.33	0	0

34	Total short-term capital losses included in U.S. Form 1065, Schedule D, line 7	34		0	0

35	Gain on the sale, exchange or involuntary conversion of property used in a trade or business and held for one year			0	0
	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			0	0
	or less (from U.S. Form 4797)	36

37	Net long-term capital gain or loss (from U.S. Form 1065, Schedule K, line 9a)	37		0	0

38	Long-term IRC § 1231 gains or losses not included in line 37	38		0	0

39	Long-term gains on collectibles and pre-1996 installment sales included in line 37		.39	0	0

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.

a. Line number	Amount
b. Line number	Amount

Total adjustments 40	0	0
Total adjustments 40

2020 FORM 3, PAGE 4

NAME OF PARTNERSHIP

FEDERAL IDENTIFICATION NUMBER

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)	Massachusetts	Worldwide
	c. Total property owned and rented	Massachusetts	Worldwide
	d. Tangible property apportionment percentage. Divide Massachusetts total by worldwide total (from line 42c)		. . . . . .42d
43	Payroll

a. Total payroll	Massachusetts	Worldwide
b. Payroll apportionment percentage. Divide Massachusetts total payroll by worldwide total payroll (from line 43a)		. . . . . .43b

44 Sales
a. Tangibles	Massachusetts	Worldwide
b. Services (including mutual fund sales)	Massachusetts	Worldwide
c. Rents and royalties	Massachusetts	Worldwide
d. Other	Massachusetts	Worldwide
e. Total sales	Massachusetts	Worldwide
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

NAME OF PARTNERSHIP

FEDERAL IDENTIFICATION NUMBER

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	0	0
48	Credit recapture (from Schedule CRS)	. . . .	.48
49	Gross receipts or sales (from Part 2, Federal Information, line 1a)		.49	0	0
49		. . . .	.49
50	Total income or loss (from Part 2, Federal Information, line 8)	50		0	0
50		50
51	Bad debts (from Part 2, Federal Information, line 12)		.51	0	0
51	Bad debts (from Part 2, Federal Information, line 12)	. . . .	.51
52	Interest (from Part 2, Federal Information, line 15)		.52	0	0
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	0	0
54		. . . .	.54

2020 FORM 3, PAGE 6

NAME OF PARTNERSHIP

FEDERAL IDENTIFICATION NUMBER

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

2	Cost of goods sold (attach Form 1125-A)	. 2
3	Gross profit. Subtract line 2 from line 1c	. 3
4	Ordinary income or loss from other partnerships, estates and trusts (attach statement)	. 4
5	Net farm profit or loss (from U.S. Form 1040, Schedule F)	. 5
6	Net gain or loss (from U.S. Form 4797, Part II, line 17; attach U.S. Form 4797)	. 6
7	Other income or loss (attach statement)	. 7
8	Total income or loss. Combine lines 3 through 7	. 8
Deductions. From U.S. Form 1065. See instructions for limitations.
9	Salaries and wages (other than to partners; less employment credits)	. 9
10	Guaranteed payments to partners	10
11	Repairs and maintenance	11
12	Bad debts	12
13	Rent	13
14	Taxes and licenses	14
15	Interest	15

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

NAME OF PARTNERSHIP

FEDERAL IDENTIFICATION NUMBER

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	38

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

NAME OF PARTNERSHIP

FEDERAL IDENTIFICATION NUMBER

Partners’ Distributive Share Items (cont’d.)

5 Fill in oval if showing a loss

. . . . . . . . . . . . . . . . . .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	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

NAME OF PARTNERSHIP

FEDERAL IDENTIFICATION NUMBER

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Analysis of partners’ capital accounts.

2020 FORM 3, PAGE 10

NAME OF PARTNERSHIP

FEDERAL IDENTIFICATION NUMBER

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.

5 Fill in oval if showing a loss

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

Get Massachusetts 3 File

Form Breakdown

Fact	Details
Ink Requirement	Form 3 must be filled out in black ink.
Entity Filing	Designed for partnerships to file their taxes.
Electronic Filing Requirement	Partnerships with more than 25 partners are required to file electronically, as per TIR 09-18.
Governing Law	Form 3 submissions are governed by Massachusetts state tax laws.

How to Write Massachusetts 3

Completing the Massachusetts Form 3 is a methodical process that requires precise information about the partnership's financial and operational status for a given tax year. Carefully filling out this form is crucial for ensuring compliance with state tax requirements and avoiding potential errors that could lead to audits or penalties. The instructions provided aim to simplify the process, ensuring accuracy and completeness in reporting.

Use black ink when filling out the Massachusetts Department of Revenue 2020 Form 3.
For the tax year, enter "01-01-2020" and "12-31-2020" if you are a calendar year filer. Fiscal year filers should enter the appropriate start and end dates of their fiscal year.
Provide the name of the partnership exactly as it appears in federal tax documents.
Enter the Federal Identification Number (FID) of the partnership.
Fill out the complete mailing address of the partnership, including the city, town, or post office, state, and zip code with the 4-digit extension.
If applicable, provide the care of (C/O) name and address.
Detail the principal business activity, principal product or service, and the business code number.
Indicate the date the business started by entering the month, day, and year.
Enter "0.00" for total assets if this applies.
For amended returns, check the box and provide a reason under F and G. If it's an initial, final return, or if there's a name change, check the appropriate box.
Select the accounting method used by the partnership (Cash, Accrual, or Other).
State how many Schedules 3K-1 are attached, remembering that partnerships with more than 25 partners must file electronically.
Fill in other applicable sections based on the partnership's specific conditions, such as being a member of a lower-tier entity, or if the partnership is an investment partnership.
If applicable, indicate whether the partnership elected out of the federal centralized partnership audit regime for the tax year.
Report the partnership's gross income and other financial details as required on the form, following instructions for applicable lines.

Mail the completed form and any attachments to the Massachusetts Department of Revenue at the address provided on the form.

After submitting the Form 3, the partnership should keep a copy of the filed return and all supporting documents for at least three years. This documentation may be needed for future reference or in the event of an audit by the Massachusetts Department of Revenue. Staying organized and maintaining accurate records can help ensure a smooth and efficient process when dealing with state tax obligations.

Discover More on Massachusetts 3

What is the Massachusetts Form 3?

The Massachusetts Form 3 is a tax document required for partnerships operating within Massachusetts. It is used by the Massachusetts Department of Revenue for the collection of partnership income tax. This form collects information on the partnership's income, deductions, and credits based on its financial activities during the tax year.

Who needs to file Form 3 in Massachusetts?

Any partnership that conducts business in Massachusetts or generates income from Massachusetts sources is required to file Form 3. This includes partnerships that are also treated as Limited Liability Companies (LLCs) for federal income tax purposes.

What is the due date for filing Form 3?

The due date for filing Form 3 is tied to the federal tax calendar. For calendar year filers, the form must be submitted by March 15th of the following year. For fiscal year filers, the due date is the 15th day of the third month following the close of their fiscal year.

Can Form 3 be amended? How?

Yes, partnerships can amend a previously filed Form 3 if necessary. To amend, the partnership needs to check off the "Amended return" box in section F of the form and explain the reason for the amendment in section G. The amended Form 3 must include all changes to the partnership’s income, deductions, and credits.

What are the requirements for electronic filing?

Partnerships with more than 25 partners are mandated to file Form 3 electronically, as per TIR 09-18. The electronic filing process is designed to streamline submission and ensure accuracy in processing the partnership's tax information.

How do partnerships report their income on Form 3?

Partnerships report their total income on Form 3 using information from U.S. Form 1065 and relevant schedules. This includes ordinary income or loss, rental real estate income or loss, interest, dividends, royalties, and capital gains or losses.

What should a partnership do if it undergoes a technical termination?

If a partnership experiences a technical termination, it must indicate so by checking the corresponding box in section G of Form 3. The partnership will also need to file the necessary returns for the tax periods before and after the termination event.

What is the significance of the Schedule 3K-1 attachments?

Schedule 3K-1 is required for each partner in the partnership and provides details on that partner's share of the partnership's income, deductions, credits, etc. It is crucial for ensuring that each partner reports their share of partnership activities accurately on their personal tax returns.

Common mistakes

Not using black ink to fill out the form, as specifically required, can result in the form being rejected or incorrectly processed.

Filling out the dates incorrectly, especially confusing calendar year filers with fiscal year filers' dates. This mistake can lead to incorrect assessment of tax periods.

Providing incorrect or incomplete Federal Identification Number (FID). The FID is crucial for identifying the partnership, and errors here can lead to processing delays.

Skipping the section that asks for the principal business activity, product or service, and business code number can leave essential classification information blank, affecting the tax evaluation.

Omitting to attach the required number of Schedule 3K-1 forms for each partner can result in incomplete filing. For partnerships with more than 25 partners, this oversight can also ignore the electronic filing requirement.

Failing to indicate the correct accounting method used by the partnership in section H can lead to misinterpretation of financial information.

These mistakes can lead not only to delays but also potential penalties or incorrect tax assessments, underlining the importance of careful and complete form completion.

Documents used along the form

When filing the Massachusetts Form 3, partnerships often need to gather additional documents and forms to ensure a comprehensive and compliant tax return. These documents help report various financial activities, calculate deductions, and provide detailed information required by the Massachusetts Department of Revenue. Let's take a look at some of these essential documents:

Schedule 3K-1: This schedule is essential for every partner within the partnership. It provides a breakdown of each partner's share of the partnership's income, deductions, credits, etc., for the year. It mirrors the federal Schedule K-1 in function, helping partners report their share of the partnership income on their personal tax returns.
Schedule CMS: This document is used to claim multiple credits on a single schedule. If the partnership is eligible for various Massachusetts tax credits, such as investment or economic opportunity area credits, Schedule CMS helps organize these claims efficiently.
Schedule CRS: This is a credit recapture schedule required when certain Massachusetts credits previously claimed need to be adjusted or recaptured due to various reasons, such as changes in investment or usage not aligned with the original credit claim.
Schedule TDS: This schedule is necessary if the partnership has third-party designees. It authorizes individuals other than the partners to discuss the return with the Massachusetts Department of Revenue, providing a level of convenience and flexibility in tax matters.
Schedule FCI: The Foreign Corporation Information Schedule is used if the partnership has any dealings with foreign entities. This includes transactions or financial interests in foreign corporations, which can significantly impact the partnership's tax responsibilities.
Income Apportionment Schedule: Partnerships operating in multiple states must apportion income to Massachusetts based on the formula provided in this schedule. It calculates the portion of total business income subject to Massachusetts state tax, factoring in sales, property, and payroll apportionments.

Filing the Massachusetts Form 3 along with the necessary schedules and documents ensures compliance with state tax laws and aids in accurate reporting. Each document plays a critical role in the tax preparation process, providing the Massachusetts Department of Revenue with a clear picture of the partnership's financial activities. Understanding and properly completing these additional forms can significantly affect the tax liabilities and benefits for partnerships operating within Massachusetts.

Similar forms

The Massachusetts 3 form is similar to several other tax documents in terms of structure, purpose, and content. It is designed primarily for partnerships to report income, deductions, and the distribution of income or loss among partners. Understanding its resemblance to other forms can help in navigating through the complexities of tax filing for entities.

U.S. Form 1065 (Partnership Return of Income) shares the closest resemblance with the Massachusetts 3 form. This federal form is required by the IRS for domestic partnerships to report their income, gains, losses, deductions, and credits. Both forms collect detailed information about the partnership's financial activities during the tax year and require a breakdown of income and deductions. They also serve a similar purpose: to inform tax authorities about the income that flows through to the partners, so it can be properly reported on their individual returns. However, the Massachusetts 3 form is specific to the state level, focusing on income sourced from or attributable to Massachusetts.

Schedule K-1 (Partner's Share of Income, Deductions, Credits, etc.) is another document that shares similarities with the Massachusetts 3 form, albeit indirectly. Schedule K-1 is an attachment to the U.S. Form 1065 and is used to report the share of income, deductions, and credits to each partner in a partnership. The Massachusetts 3 form essentially compiles this individual partner information at the partnership level for state tax purposes. It ensures the state has a comprehensive overview of how income and losses are distributed among partners, much like Schedule K-1s do at the federal level. Both are critical for partners to accurately report their income on personal tax returns.

Form 8825 (Rental Real Estate Income and Expenses of a Partnership or an S Corporation) is also related in content and purpose to the Massachusetts 3 form. Form 8825 is used by partnerships and S corporations to report income and deductions from rental real estate activities. It is comparable in the way that both forms require detailed reporting of income and expenses associated with business operations. The Massachusetts 3 form encompasses a broader range of activities beyond just rental real estate, but they share the common feature of detailing the financial aspects of business operations for tax reporting purposes.

While each of these documents serves its unique role in the tax filing process, understanding their similarities and differences is crucial for accurate and comprehensive tax reporting for partnerships and similar entities.

Dos and Don'ts

When completing the Massachusetts Form 3, certain practices are essential for ensuring accuracy and compliance with the rules set forth by the Massachusetts Department of Revenue. Here are crucial dos and don’ts:

Do use black ink as required by the instructions to ensure the form is legible and can be properly scanned and processed.
Do correctly enter the tax year beginning and ending dates, making sure to differentiate between calendar and fiscal year filers.
Do carefully fill in the Federal Identification Number (FID) to avoid processing delays or issues with identity verification.
Do include the complete mailing address, including the zip + 4, for both the partnership and, if applicable, the care of (C/O) address to ensure correspondence from the Massachusetts Department of Revenue reaches the right destination.
Do indicate the appropriate accounting method used by the partnership (Cash, Accrual, Other) to maintain consistency in financial reporting.
Do attach a Schedule 3K-1 for each person who was a partner at any time during the tax year as required, which is crucial for accurate reporting of distributive shares.
Don't fill out the form without checking the specific instructions for each section, which may have nuanced requirements or necessitate additional documentation.
Don't forget to sign and date the form. The signature of a general partner is a declaration under penalties of perjury that the return and enclosures are true, correct, and complete to the best of the signer’s knowledge.
Don't overlook the electronic filing requirement for partnerships with more than 25 partners, as set forth in TIR 09-18, to comply with the Massachusetts Department of Revenue’s mandates.

Adhering to these guidelines will help ensure that the Massachusetts Form 3 is filled out correctly and submitted in compliance with Massachusetts tax laws.

Misconceptions

The Massachusetts 3 form, utilized by partnerships for tax reporting, often leads to confusion due to a range of misconceptions. Clarifying these misunderstandings is crucial for ensuring compliance and accuracy when completing the form.

The form is only for large partnerships: There's a misconception that the Massachusetts 3 form is exclusively for large partnerships, possibly due to electronic filing requirements for partnerships with more than 25 partners. However, the form is necessary for all partnerships operating within Massachusetts, regardless of size, unless specifically exempted.
All sections must be filled by all filers: Not every section of the Massachusetts 3 form applies to every partnership. Some parts are specific to certain types of income, deductions, or credits that might not be relevant to every entity. Misunderstanding this can lead to unnecessary work or incorrect filings.
Fiscal year filers use calendar year dates: Some partnerships mistakenly use calendar year dates, even when they file on a fiscal year basis. The form clearly provides space for these partnerships to enter their appropriate fiscal year beginning and ending dates, which are crucial for accurate tax reporting.
Electronic filing is an option: While the mandate per TIR 09-18 suggests a preference for electronic filing, especially for partnerships with more than 25 partners, it's often misconceived as merely optional. In reality, for those partnerships, electronic filing is mandatory unless a valid exception applies, enhancing efficiency and reducing paper usage.
Investment partnerships have no specific requirements: Another common misunderstanding is that investment partnerships, as defined in the Pass-Through Entity Withholding Regulation, don't have distinct obligations on the form. In reality, there are unique checkboxes and sections tailored to investment partnerships, underscoring the form's adaptability to various partnership structures and activities.

Understanding these misconceptions and the actual requirements of the Massachusetts 3 form is critical for accurate and compliant tax reporting by partnerships operating in Massachusetts.

Key takeaways

When preparing and submitting the Massachusetts Form 3 for tax purposes, it is crucial for partnerships to adhere to several key guidelines to ensure compliance and accuracy in their tax reporting. Below are several important takeaways for accurately filling out and utilizing the Form 3:

Use black ink exclusively when filling out the form to ensure that all information is legible and capable of being processed correctly by the Massachusetts Department of Revenue.
The form requires the specification of the tax year, distinguishing between calendar year filers and fiscal year filers. Calendar year filers should enter the start and end dates as "01–01–2020" and "12–31–2020" respectively, whereas fiscal year filers must enter the relevant dates that apply to their specific fiscal period.
It is mandated that partnerships with more than 25 partners must submit their Form 3 electronically. This requirement promotes efficiency and helps in streamlining the tax submission and processing phases.
The Form includes sections that cater to various situations such as amendments due to federal changes, technical terminations, initial returns, final returns, name changes, and other circumstances. This flexibility allows for a comprehensive accounting of the partnership's tax obligations and changes within the tax year.

Overall, the Massachusetts Form 3 encompasses detailed information that requires careful attention and precision from the partnership to accurately report and comply with state tax obligations.

Please rate Fill Your Massachusetts 3 Form Form

4.77

Superior

246 Votes

Browse Other PDFs

M941 - The form is essential for reconciliation of total annual withholding amounts reported to the state.

How to File for Restraining Order - The provision to select among various massachusetts courts for filing allows plaintiffs accessibility and convenience, taking into account geographical and jurisdictional considerations.