The Division of Taxation appeared by Barbara G. Billett, Esq. No penalty was asserted due. The following deficiency is based on failure to report those changes. Section 659 of the New York State Tax Law requires taxpayers to report Federal changes to New York State within 90 days after final Federal determination. This provision of the Tax Law is outlined in the instructions for preparation of New York State income tax forms.
Interest is due for late payment or underpayment at the applicable rate.
Interest is mandatory under the New York State Tax Law. Petitioners filed a resident New York income tax return for 1982, the year at issue, which was conceded by petitioners' representative, Ronald Kassover, a certified public accountant who prepared petitioners' income tax returns for 1982. Furthermore, they claim that they were the only partners who were assessed additional tax by New York State on the basis of this disallowance. The Federal income tax adjustment of petitioners' income for 1982, based upon the disallowance of the partnership loss claimed from Jaclyn Realty, was asserted on July 30, 1990. Petitioners never reported this Federal adjustment to the Division.