§ 658 — Requirements concerning returns, notices, records and statements

New York § 658

• Jurisdiction: New York
• Law TAX: Tax
• Part 4: Returns and Payment of Tax
• Art. 22: Personal Income Tax

Text

§ 658. Requirements concerning returns, notices, records and\nstatements. (a) General. The tax commission may prescribe regulations\nas to the keeping of records, the content and form of returns and\nstatements, and the filing of copies of federal income tax returns and\ndeterminations. The tax commission may require any person, by\nregulation or notice served upon such person, to make such returns,\nrender such statements, or keep such records, as the tax commission may\ndeem sufficient to show whether or not such person is liable under this\narticle for tax or for collection of tax. The tax commission shall\nprovide a space on the form of returns wherein the taxpayer shall\nindicate the school district in which the taxpayer is a resident.\n (b) Identifying numbers.--(1) When required by regulations prescribed\nby the tax commission:\n (A) Inclusion in returns.-- Any person required under the authority of\nthis article to make a return, statement, or other document shall\ninclude in such return, statement or other document such identifying\nnumber as may be prescribed for securing proper identification of such\nperson.\n (B) Furnishing number to other persons.-- Any person with respect to\nwhom a return, statement, or other document is required under the\nauthority of this article to be made by another person shall furnish to\nsuch other person such identifying number as may be prescribed for\nsecuring his proper identification.\n (C) Furnishing number of another person.-- Any person required under\nthe authority of this article to make a return, statement, or other\ndocument with respect to another person shall request from such other\nperson, and shall include in any such return, statement, or other\ndocument, such identifying number as may be prescribed for securing\nproper identification of such other person.\n (2) Limitation.--\n (A) Except as provided in subparagraph (B), a return of any person\nwith respect to his liability for tax, or any statement or other\ndocument in support thereof, shall not be considered for purposes of\nsubparagraphs (B) and (C) of subsection (1) as a return, statement, or\nother document with respect to another person.\n (B) For purposes of subparagraphs (B) and (C) of subsection (1), a\nreturn of an estate or trust with respect to its liability for tax, and\nany statement or other document in support thereof, shall be considered\nas a return, statement, or other document with respect to each\nbeneficiary of such estate or trust.\n (3) Requirement of information.-- For purposes of this section, the\ntax commission is authorized to require such information as may be\nnecessary to assign an identifying number to any person.\n (c) Partnerships, limited liability companies and S corporations.\n (1) Partnerships. Every partnership having a resident partner or\nhaving any income derived from New York sources, determined in\naccordance with the applicable rules of section six hundred thirty-one\nof this article as in the case of a nonresident individual, shall make a\nreturn for the taxable year setting forth all items of income, gain,\nloss and deduction and such other pertinent information as the\ncommissioner may by regulations and instructions prescribe. Such return\nshall be filed on or before the fifteenth day of the fourth month\nfollowing the close of each taxable year, for taxable years beginning\nbefore January first, two thousand sixteen, and on or before the\nfifteenth day of the third month following the close of each taxable\nyear, for taxable years beginning on or after January first, two\nthousand sixteen, except that the due date for the return of a\npartnership consisting entirely of nonresident noncitizens shall be the\ndate prescribed for the filing of its federal partnership return for the\ntaxable year. For purposes of this paragraph, "taxable year" means a\nyear or a period which would be a taxable year of the partnership if it\nwere subject to tax under this article.\n (2) S corporations. Every S corporation for which the election\nprovided for in subsection (a) of section six hundred sixty is in effect\nshall make a return for the taxable year setting forth all items of\nincome, loss and deduction and such other pertinent information as the\ncommissioner of taxation and finance may by regulations and instructions\nprescribe. Such return shall be filed on or before the fifteenth day of\nthe third month following the close of each taxable year.\n (3) Filing fees. (A) Every subchapter K limited liability company,\nevery limited liability company that is a disregarded entity for federal\nincome tax purposes, and every partnership which has any income derived\nfrom New York sources, determined in accordance with the applicable\nrules of section six hundred thirty-one of this article as in the case\nof a nonresident individual, shall on or before the fifteenth day of the\nthird month following the close of each taxable year make a payment of a\nfiling fee. The amount of the filing fee is the amount set forth in\nsubparagraph (B) of this paragraph. The minimum filing fee is\ntwenty-five dollars for taxable years beginning in two thousand eight\nand thereafter. Limited liability companies that are disregarded\nentities for federal income tax purposes must pay a filing fee of\ntwenty-five dollars for taxable years beginning on or after January\nfirst, two thousand eight.\n (B) The filing fee will be based on the New York source gross income\nof the limited liability company or partnership for the taxable year\nimmediately preceding the taxable year for which the fee is due. If the\nlimited liability company or partnership does not have any New York\nsource gross income for the taxable year immediately preceding the\ntaxable year for which the fee is due, the limited liability company or\npartnership shall pay the minimum filing fee. Partnerships, other than\nlimited liability partnerships under article eight-B of the partnership\nlaw and foreign limited liability partnerships, with less than one\nmillion dollars in New York source gross income are exempt from the\nfiling fee. New York source gross income is the sum of the partners' or\nmembers' shares of federal gross income from the partnership or limited\nliability company derived from or connected with New York sources,\ndetermined in accordance with the provisions of section six hundred\nthirty-one of this article as if those provisions and any related\nprovisions expressly referred to a computation of federal gross income\nfrom New York sources. For this purpose, federal gross income is\ncomputed without any allowance or deduction for cost of goods sold.\n The amount of the filing fee for taxable years beginning on or after\nJanuary first, two thousand eight will be determined in accordance with\nthe following table:\nIf the New York source gross income is: The fee is:\nnot more than $100,000 $25\nmore than $100,000 but not over $250,000 $50\nmore than $250,000 but not over $500,000 $175\nmore than $500,000 but not over $1,000,000 $500\nmore than $1,000,000 but not over $5,000,000 $1,500\nmore than $5,000,000 but not over $25,000,000 $3,000\nOver $25,000,000 $4,500\n (C) No credits provided by this article may be taken against the fee\nimposed by this paragraph.\n (D) Where the filing fee is not timely paid, it shall be paid upon\nnotice and demand and shall be assessed, collected and paid in the same\nmanner as taxes, and for those purposes any reference in this article to\ntax imposed by this article shall be deemed also to refer to this filing\nfee.\n (E) Notwithstanding the provisions of subsection (e) of section six\nhundred ninety-seven of this article, the commissioner shall provide the\nstatements and other required information included on the filing fee\npayment form under section three hundred one of the limited liability\ncompany law, subdivision (g) of section 121-1500 of the partnership law,\nand subdivision (f) of section 121-1502 of the partnership law, to the\nsecretary of state for filing. Such provision may also include a copy or\nimage of that portion of the report solely pertinent to such information\nto the extent feasible. The commissioner may also provide information on\nnoncompliance.\n (4) Estimated tax of nonresident partners, members and shareholders.\n(A) General. Every entity which is a partnership, other than a publicly\ntraded partnership as defined in section 7704 of the federal Internal\nRevenue Code, subchapter K limited liability company or an S corporation\nfor which the election provided for in subsection (a) of section six\nhundred sixty of this part is in effect, which has partners, members or\nshareholders who are nonresident individuals, as defined under\nsubsection (b) of section six hundred five of this article, or C\ncorporations, and which has any income derived from New York sources,\ndetermined in accordance with the applicable rules of section six\nhundred thirty-one of this article as in the case of a nonresident\nindividual, shall pay estimated tax on such income on behalf of such\npartners, members or shareholders in the manner and at the times\nprescribed by subsection (c) of section six hundred eighty-five of this\narticle. For purposes of this paragraph, the term "estimated tax" shall\nmean a partner's, member's or shareholder's distributive share or pro\nrata share of the entity income derived from New York sources,\nmultiplied by the highest rate of tax prescribed by section six hundred\none of this article for the taxable year of any partner, member or\nshareholder who is an individual taxpayer, or paragraph (a) of\nsubdivision one of section two hundred ten of this chapter for the\ntaxable year of any partner, member or shareholder which is a C\ncorporation, whether or not such C corporation is subject to tax under\narticle nine, nine-A or thirty-three of this chapter, and reduced by the\ndistributive share or pro rata share of any credits determined under\nsection one hundred eighty-seven, one hundred eighty-seven-a, six\nhundred six or fifteen hundred eleven of this chapter, whichever is\napplicable, derived from the entity.\n (B) Treatment of payment. Any payment by the entity under this\nparagraph with respect to a partner, member or shareholder who is an\nindividual shall be deemed to be a payment of estimated tax by the\npartner, member or shareholder pursuant to subsection (c) of section six\nhundred eighty-five of this article.\n (C) Additions to tax. (i) If an entity required by this paragraph to\npay estimated tax on behalf of a partner, member or shareholder fails to\ndo so, such entity shall pay a penalty of fifty dollars for each such\nfailure for each such partner, member or shareholder, unless it is shown\nthat such failure is due to reasonable cause and not due to willful\nneglect.\n (ii) In the case of an underpayment of estimated tax by the entity,\nthere shall be added to the estimated tax required to be paid by the\nentity under this paragraph, an amount determined pursuant to subsection\n(c) of section six hundred eighty-five of this article.\n (D) Exceptions. (i) This paragraph shall not apply with respect to a\npartner, member or shareholder for whom estimated tax required to be\npaid under subparagraph (A) of this paragraph for the taxable year of\nthe partner, member or shareholder does not exceed three hundred\ndollars.\n (ii) This paragraph shall not apply with respect to any partner,\nmember or shareholder if the entity is authorized by the commissioner to\nfile a group return and such partner, member or shareholder has elected\nto be included on the group return, or if the commissioner has issued a\nwaiver of withholding pursuant to this section. The commissioner may\nissue such waivers in respect of partners, members or shareholders who\nare not subject to New York income tax, or who establish that they are\nfiling New York income tax returns and paying estimated taxes when due,\nand in other circumstances in which the commissioner determines that\nwithholding is not necessary to ensure collection of income tax on New\nYork source income allocable to the nonresident or C corporation.\n (E) Information statements. Every entity required under this paragraph\nto pay estimated taxes for any of its partners, members or shareholders\nshall furnish, within thirty days after such estimated tax is paid, to\neach such partner, member or shareholder a written statement showing the\nestimated taxes paid by the entity on behalf of such partner, member or\nshareholder and any other information the commissioner shall prescribe,\nincluding any information necessary to identify each partner, member or\nshareholder on whose behalf the entity has paid estimated taxes. The\nentity shall provide to the commissioner information necessary to\nidentify the estimated tax paid by the entity for each partner, member\nor shareholder and information necessary to identify each partner,\nmember or shareholder of the partnership, limited liability company or S\ncorporation, whether or not estimated tax was paid for such partner,\nmember or shareholder by the entity, at such times and in such manner as\nthe commissioner shall prescribe.\n (d) Information at source. (1) The commissioner of taxation and\nfinance may prescribe regulations and instructions requiring returns of\ninformation to be made and filed on or before February twenty-eighth of\neach year as to the payment or crediting in any calendar year of amounts\nof six hundred dollars or more to any taxpayer under this article. Such\nreturns may be required of any person, including lessees or mortgagors\nof real or personal property, fiduciaries, employers, and all officers\nand employees of this state, or of any municipal corporation or\npolitical subdivision of this state, having the control, receipt,\ncustody, disposal or payment of interest, rents, salaries, wages,\npremiums, annuities, compensations, remunerations, emoluments or other\nfixed or determinable gains, profits or income, except interest coupons\npayable to bearer. Information required to be furnished pursuant to\nparagraph four of subsection (a) of section six hundred seventy-four on\na quarterly combined withholding and wage reporting return covering each\ncalendar quarter of each year and relating to tax withheld on wages paid\nby an employer to an employee for each calendar quarter, shall\nconstitute the return of information required to be made under this\nsection with respect to such wages.\n (2) (A) The commissioner shall be authorized to require, by\nregulation, that any or all of the returns of information referred to in\nparagraph one of this subsection, the quarterly combined withholding,\nwage reporting and unemployment insurance returns required by paragraph\nfour of subsection (a) of section six hundred seventy-four and the\nreports required by section one hundred seventy-one-h of this chapter be\nfiled on magnetic media or in other machine readable form. Such\nregulations shall conform, to the extent practicable, with corresponding\nfederal regulations and instructions promulgated pursuant to the\nauthority of section six thousand eleven of the federal Internal Revenue\nCode. Any person required to file two hundred fifty or more of the\nreturns referred to in paragraph one of this subsection may be required\nto file such returns on magnetic media or in other machine readable form\npursuant to the provisions of this paragraph.\n (B) A filer may seek exemption from the magnetic media filing\nrequirement for a particular period, if the filer proves to the\nsatisfaction of the commissioner of taxation and finance that imposition\nof such a requirement for that period would result in undue hardship.\nThe commissioner shall take into account (among other relevant factors)\nthe ability of the filer to comply at reasonable cost with such a filing\nrequirement.\n (C) The regulations provided for in this paragraph may include, but\nshall not be limited to, the following:\n (i) a description of the kinds of magnetic media which can be used to\nsatisfy the filing requirement;\n (ii) a description of the kinds of returns and classes of filers to be\nsubject to the magnetic media or other machine readable form filing\nrequirement; and\n (iii) procedures governing the voluntary submission by magnetic media\nor other machine readable form of all or any portion of the returns\ndescribed in this paragraph.\n (3) The commissioner may by regulation or instruction require the\nfiling of a report annually by the comptroller or program manager of the\nNew York state college choice tuition savings program, or their\ndesignee, setting forth the names and identification numbers of account\nowners, designated beneficiaries and distributees of family tuition\naccounts, the amounts contributed to such accounts, the amounts\ndistributed from such accounts and the nature of such distributions as\nqualified withdrawals or as withdrawals other than qualified\nwithdrawals, and any such other information as the commissioner may\nrequire regarding the taxation under this article of amounts contributed\nto or withdrawn from such accounts. The commissioner may require that\nany such report also be made to the account owner, designated\nbeneficiary or distributee of any such account.\n (e) Notice of qualification as receiver, etc. Every receiver, trustee\nin bankruptcy, assignee for benefit of creditors, or other like\nfiduciary shall give notice of his qualification as such to the tax\ncommission, as may be required by regulation.\n (f) (1) Every trust described by subparagraph (D) of paragraph three\nof subsection (b) of section six hundred five of this article shall make\na return for any taxable year in which it makes an accumulation\ndistribution within the meaning of subdivision (b) of section six\nhundred sixty-five of the internal revenue code to a beneficiary who is\na resident, which return shall include (i) information identifying such\nresident, (ii) the amount of such accumulation distribution, and (iii)\nsuch other information as the commissioner may require. In determining\nwhether there has been an accumulation distribution for purposes of this\nparagraph, such trust shall exclude distributions from income earned by\nthe trust prior to the beneficiary's birth or attaining the age of\ntwenty-one.\n (2) Every resident trust that does not file the return required by\nsection six hundred fifty-one of this part on the ground that it is not\nsubject to tax pursuant to subparagraph (D) of paragraph three of\nsubsection (b) of section six hundred five of this article for the\ntaxable year shall make a return for such taxable year substantiating\nits entitlement to that exemption and providing such other information\nas the commissioner may require.\n (3) The returns required by this subsection shall be filed on or\nbefore the fifteenth day of the fourth month following the close of each\ntaxable year. For purposes of this paragraph, "taxable year" means a\nyear or a period which would be a taxable year of the trust if it were\nsubject to tax under this article.\n (g) Requirements applicable to tax return preparer.\n (1) Signature of tax return preparer. Any individual who is a tax\nreturn preparer and prepares any return or claim for refund, shall sign\nsuch return or claim for refund in accordance with regulations or\ninstructions prescribed by the commissioner.\n (2) Furnishing identifying numbers. Any return or claim for refund\nwhich is prepared by a tax return preparer shall include the identifying\nnumber of the preparer required by paragraph one of this subsection to\nsign such return or claim for refund. In addition, where such individual\npreparer is an employee of an employer which is a tax return preparer\nwith respect to such return or claim for refund, or where such preparer\nis a partner in a partnership which is a tax return preparer with\nrespect to such return or claim for refund, then such return or claim\nfor refund shall also include the identifying number of such employer or\npartnership. Such identifying numbers shall be as prescribed by the\ncommissioner in order to secure the proper identification of such\nindividual preparer, partnership or employer. The responsibility for the\ninclusion of such identifying numbers shall be as set forth in paragraph\ntwo of subsection (u) of section six hundred eighty-five of this\narticle.\n (3) Furnishing copy to taxpayer. Any person who is a tax return\npreparer with respect to any return or claim for refund shall furnish a\ncompleted copy of such return or claim for refund to the taxpayer not\nlater than the time such return or claim for refund is presented for\nsuch taxpayer's signature.\n (4) Copy or list to be retained by tax return preparer. Any person who\nis a tax return preparer with respect to any return or claim for refund\nshall for a three year retention period described in paragraph nine of\nthis subsection:\n (A) retain a completed copy of such return or claim for refund, or\nretain, on a list, the name and identification number of the taxpayer\nfor whom such return or claim was prepared, and\n (B) make such copy or list available for inspection upon request by\nthe commissioner.\n (5) Tax return preparer defined. For purposes of this article, the\nterm "tax return preparer" means any person who prepares for\ncompensation, or who employs or engages one or more persons to prepare\nfor compensation any return or claim for refund. The preparation of a\nsubstantial portion of a return or claim for refund shall be treated as\nif it were the preparation of such return or claim for refund. Where an\nemployer and one or more employees of such employer are tax return\npreparers with respect to the same return or claim for refund, or where\na partnership and one or more partners in such partnership are tax\nreturn preparers with respect to the same return or claim for refund,\nfor purposes of paragraphs three and four of this subsection, such\nemployer or such partnership shall be deemed to be the sole tax return\npreparer. A person shall not be a "tax return preparer" merely because\nsuch person--\n (A) furnishes typing, reproducing, or other mechanical assistance,\n (B) prepares a return or claim for refund of the employer (or of an\nofficer or employee of the employer) by whom he is regularly and\ncontinuously employed, or\n (C) prepares as a fiduciary a return or claim for refund for any\nperson.\n (6) Person defined. For purposes of this subsection, the term "person"\nincludes an individual, corporation (including a dissolved corporation)\nor partnership.\n (7) Return defined. For purposes of this subsection, the term "return"\nshall mean any return required under this article.\n (8) Claim for refund defined. For purposes of this subsection, the\nterm "claim for refund" shall mean a claim for refund of or credit\nagainst any tax imposed under this article, and shall include any claim\nfor refund of any credit treated as an overpayment of tax under this\narticle.\n (9) Retention period defined. For purposes of this subsection, the\nterm "retention period" shall mean:\n (A) in the case of a tax return, the period ending the later of three\nyears after the due date of such return (without regard to extensions)\nor three years after the date such return was presented to the taxpayer\nfor such taxpayer's signature, and\n (B) in the case of a claim for refund, the period ending three years\nafter such claim for refund was presented to the taxpayer for such\ntaxpayer's signature.\n * (10) Mandatory electronic filing by certain tax return preparers.\n(A)(i) If a tax return preparer prepared more than two hundred original\nreturns during the calendar year beginning on January first, two\nthousand five, and if, in the calendar year beginning on January first,\ntwo thousand six, such tax return preparer prepares one or more\nauthorized returns using tax software, then, for such calendar year two\nthousand six and for each subsequent calendar year thereafter, all\nauthorized returns prepared by such tax return preparer shall be filed\nelectronically, in accordance with instructions prescribed by the\ncommissioner.\n (ii) If a tax return preparer prepared more than one hundred original\nreturns during any calendar year beginning on or after January first,\ntwo thousand six, and if, in any succeeding calendar year such tax\nreturn preparer prepares one or more authorized returns using tax\nsoftware, then, for such succeeding calendar year and for each\nsubsequent calendar year thereafter, all authorized returns prepared by\nsuch tax return preparer shall be filed electronically, in accordance\nwith instructions prescribed by the commissioner.\n (B) For purposes of this paragraph:\n (i) "Electronic" means computer technology; provided, however, that\nthe commissioner may, in instructions, provide that use of barcode\ntechnology will also satisfy the mandatory electronic filing\nrequirements of this section.\n (ii) "Authorized return" means any return required under this article\nwhich the commissioner has authorized to be filed electronically.\n (iii) "Original return" means a return required under this article\nthat is filed, without regard to extensions, during the calendar year\nfor which that return is required to be filed.\n (iv) "Tax software" means any computer software program intended for\ntax return preparation purposes.\n * NB Effective January 1, 2030\n