Authors: Tarra Curran, CPA, MST and Dave Swan, CPA
Last July Massachusetts’ lawmakers voted to switch the rules for sourcing sales of services in its income apportionment formula, moving from a statutory “cost of performance” method to a “market-sourcing” approach. Architecture and engineering firms have been using the cost of performance method for quite some time so this rules change represents a significant change in how they will apportion their income.