The Massachusetts Department of Revenue (the “DOR”) promulgated on July 21, 2020 an emergency regulation (the “Regulation”) to address income-sourcing concerns during the COVID-19 pandemic. Pursuant to the Regulation, the DOR will continue to treat as Massachusetts-source income any compensation paid to a nonresident who currently performs services out of state due to the pandemic but, immediately prior to the pandemic, performed such services in Massachusetts. Accordingly, such income will be subject to Massachusetts personal income tax and personal income tax withholding. The Regulation is scheduled to remain in effect until the earlier of December 31, 2020 or 90 days after the Governor terminates the state of emergency. The DOR held a public hearing on the Regulation on August 27, 2020, as announced in a notice. This procedural step was necessary to extend the effectiveness of the Regulation beyond three months, pursuant to Mass. Gen. Laws ch. 30A, § 2.
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