New York Codes, Rules and Regulations › Title 16 - DEPARTMENT OF PUBLIC SERVICE › Chapter VI - TELEPHONE AND TELEGRAPH CORPORATIONS › Subchapter E - Uniform Systems Of Accounts › Article 1 - Telephone Corporations › Part 661 - Instructions-general › Section 661.13 - Comprehensive interperiod tax allocation

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Companies shall apply interperiod tax
					 allocation (tax normalization) to all book/tax timing differences which would
					 be considered material for published financial report purposes. Furthermore,
					 companies shall also apply interperiod tax allocation if any item or group of
					 similar items when aggregated would yield debit or credit entries which exceed
					 or would exceed five percent of the gross deferred income tax expense debits or
					 credits during any calendar year over the life of the timing difference.
					 Book/tax timing differences, other than those resulting from accelerated
					 depreciation or waiver, however, shall be phased in over a period of five years
					 as directed by this commission. The tax effects of all book/tax timing
					 differences shall be normalized and the deferrals shall be included in the
					 following accounts:
1360 Current Deferred Income Taxes--Dr
1510 Noncurrent Deferred Income Taxes--Dr
4100 Current Deferred Operating Income Taxes--Cr
4110 Current Deferred Nonoperating Income
						Taxes--Cr
4340 Noncurrent Deferred Operating Income
						Taxes--Cr
4350 Noncurrent Deferred Nonoperating Income
						Taxes--Cr
In lieu of the accounting prescribed herein, any company
						shall treat the increase/reduction in current income taxes payable resulting
						from the use of flow through accounting in prior years and the phase-in years
						as an increase/reduction in current income tax expense.
(b) Supporting documentation shall be
					 maintained so as to separately identify the amount of deferred taxes which
					 arise from the use of an accelerated method of depreciation.
(c) With respect to the tax differentials
					 that are phased in, companies shall maintain underlying entries to and the
					 balances in the above accounts so as to show that the deferred tax amounts are
					 not greater than the phase-in percentage allowed by this commission.
(d) The records supporting the activity in
					 the deferred income tax accounts shall be maintained in sufficient detail to
					 identify the nature of the specific timing differences giving rise to both the
					 debits and credits to the individual accounts.
(e) Any company that uses accelerated
					 depreciation (or recognizes taxable income or losses upon the retirement of
					 property) for income tax purposes shall normalize the tax differentials
					 occasioned thereby as indicated in paragraphs (1) and (2) of this subdivision.
(1) With respect to the retirement of
					 property the book/tax difference between (i) the recognition of proceeds as
					 income and the accrual for salvage value and (ii) the book and tax capital
					 recovery, shall be normalized.
(2)
					 Records shall be maintained so as to show the deferred tax amounts by vintage
					 year separately for each class or subclass of eligible depreciable telephone
					 plant for which an accelerated method of depreciation has been used for income
					 tax purposes. When property is transferred to nonregulated activities, the
					 associated deferred income taxes shall also be identified and transferred to
					 the appropriate nonregulated accounts. Accumulated deferred investment tax
					 credits associated with deregulated assets shall be transferred with the
					 related asset, unless otherwise directed by the commission.