Massachusetts Company Loses Bid to Deduct Subcontractor Wages

A Massachusetts staffing company failed to substantiate the amount of cash it said it paid subcontractors and therefore isn’t entitled to its claimed $1 million corporate excise tax deduction, a state tribunal ruled in an opinion released Friday.

Southern Mass Staffing Services Inc. challenged the Massachusetts Commissioner of Revenue’s denial of a $1 million business expense deduction for wages it allegedly paid in 2015 to temporary workers at Shields Packaging Co. Inc. and Pilgrim Food. But the company only offered the “inconsistent” testimony of its president, Mesa Som, and an “undated and untitled list” of amounts paid to the workers, ...