New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter II - Income Taxes and Estate Taxes › Subchapter D - City Of Yonkers Earnings Tax On Nonresidents › Part 261 - Accounting Periods And Methods › Accounting Methods › Section 261.12 - Change other than from accrual to installment method of accounting

Current through Register Vol. 46, No. 28, July 10, 2024
Tax Law, § 5(d)(2) of § 1340(c); Codes and Ordinances of
						the City of Yonkers, § 92-102(d)(2)
(a) If a nonresident taxpayer's method of
					 accounting is changed, other than from an accrual to an installment method,
					 there must be taken into account, in computing net earnings for the taxable
					 year of the change, those adjustments pertaining to inventories, accounts
					 receivable, accounts payable, etc., which are determined to be necessary to
					 prevent amounts from being duplicated or omitted. If the change has occurred by
					 reason of a change in such taxpayer's Federal method of accounting, such
					 adjustments will generally be reflected in such taxpayer's Federal net earnings
					 from self-employment and therefore in such taxpayer's City of Yonkers net
					 earnings from self-employment for the year of the change. The year of the
					 change is the taxable year for which the taxable earnings of the taxpayer are
					 computed under a method of accounting different from that used for the
					 preceding year.
(b) The adjustments
					 necessitated by reason of such change in accounting method may result in an
					 amount of City of Yonkers earnings tax for the year of the change in excess of
					 the City of Yonkers earnings tax which would have been determined had there not
					 been such change in the method of accounting. In such event, the additional
					 City of Yonkers earnings tax shall not be greater than if such adjustments were
					 ratably allocated and included for the taxable year of the change and the
					 preceding taxable years beginning after 1983, not in excess of two, during
					 which the taxpayer used the method of accounting from which the change was
					 made.
(c) The nonresident taxpayer
					 must submit a statement with the City of Yonkers earnings tax return for the
					 year of the change, setting forth the following information and calculations:
(1) each adjustment necessitated by the
					 change;
(2) the net amount of the
					 adjustments. This means the consolidation of the adjustments (whether the
					 amounts thereof represent increases or decreases in items of income or
					 deductions) arising with respect to balances in various accounts at the
					 beginning of the taxable year of the change. Where the change in the method of
					 accounting occurs by reason of a Federal change, this net amount must be the
					 same for the City of Yonkers earnings tax purposes as it is for Federal income
					 tax purposes;
(3) the City of
					 Yonkers earnings tax for the taxable year of the change with the net amount of
					 adjustments included in the computation of City of Yonkers earnings;
(4) the City of Yonkers earnings tax for the
					 taxable year of the change computed as if the net amount of such adjustments
					 were not included in the computation of City of Yonkers earnings;
(5) the additional City of Yonkers earnings
					 tax, if any, incurred solely by reason of the net amount of adjustments
					 included in City of Yonkers net earnings, computed by subtracting paragraph (4)
					 of this subdivision from paragraph (3) of this subdivision;
(6) the allocation of the net amount of
					 adjustments (paragraph [2] of this subdivision) to the taxable year of change
					 and the preceding taxable year or years, not in excess of two, during which the
					 taxpayer used the method of accounting from which the change is made. The
					 amount to be allocated to each such year is determined by dividing the net
					 amount of adjustments into as many equal parts as there are taxable years
					 involved (either two taxable years or three taxable years, including the
					 taxable year of the change);
(7)
					 the City of Yonkers net earnings for the year of the change and for the
					 preceding year or two years, as the case may be, computed both (i) without any
					 amount of the net adjustments and (ii) with the addition of the appropriate
					 share of the net adjustments as determined under paragraph (6) of this
					 subdivision;
(8) the additional
					 City of Yonkers earnings tax which would result for each of the above taxable
					 years by the addition to the City of Yonkers net earnings in each such year of
					 the appropriate share of the net adjustments; and
(9) the total amount of such additional City
					 of Yonkers earnings tax for the years involved.