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 266 - Change Of Resident Status During Year › Section 266.3 - Special accruals

Current through Register Vol. 46, No. 28, July 10, 2024
Tax Law, §§ 1327, 1332, § 12(c) of § 1340(c); Codes and
					 Ordinances of the City of Yonkers, §§ 92-86, 92-92, 92-109(c)
(a) Where a taxpayer changes status from that
				  of a resident to a nonresident of the City of Yonkers, such taxpayer must,
				  regardless of the method of accounting normally employed, accrue and include in
				  the computation of net State tax, for purposes of determining the City of
				  Yonkers income tax surcharge for the portion of the year prior to the change of
				  resident status, any items of income, gain, loss or deduction accruing prior to
				  the change of resident status, if not otherwise properly includible or
				  allowable for purposes of computing net State tax for such prior portion of the
				  taxable year or for a prior taxable year. That is, in computing net State tax
				  for purposes of determining the City of Yonkers income tax surcharge for the
				  resident period, such taxpayer must include all the items required to be
				  included if a Federal income tax return were being filed for the same period on
				  the accrual basis, together with any other accruals such as deferred gain on
				  installment obligations which are not otherwise includible or deductible for
				  such prior period or for a prior taxable period.
Note:
If such taxpayer's period of City of Yonkers residence is
					 not the same as such taxpayer's period of New York State residence, net State
					 tax for the portion of the year during which such taxpayer is a City of Yonkers
					 resident must be determined as if such taxpayer's New York State period of
					 residence were the same as such taxpayer's City of Yonkers period of residence.
					 The amount of such net State tax applicable to the period of Yonkers residence
					 must include the special accruals required by this
					 subdivision.
(b) Where a
				  taxpayer changes status from that of a nonresident to a resident of the City of
				  Yonkers, such taxpayer must, regardless of the method of accounting normally
				  employed, accrue, for the portion of the year prior to such change, any items
				  of income, gain, loss or deduction accruing prior to the change of resident
				  status, if not otherwise properly includible or allowable for Federal
				  self-employment tax or Federal income tax purposes for such prior portion of
				  the taxable year or for a prior taxable year. That is, in computing City of
				  Yonkers wages or net earnings from self-employment applicable to the City of
				  Yonkers nonresident period, such taxpayer must include all the items required
				  to be included if a Federal income tax return were being filed for the same
				  period on the accrual basis.
(c) No
				  items of income, gain, loss or deduction accrued under this section for the
				  portion of the taxable year prior to the change of residence are to be taken
				  into account for any subsequent taxable period.
(d) See also sections
				  154.10 and
				  154.12 
				  of this Title with regard to special accruals in the case of a change of New
				  York State residence.
(e)
Special accruals not required in certain cases.
The City of Yonkers income tax surcharge return for the
					 period prior to a change of status from resident to nonresident may be filed
					 without the special accruals if the taxpayer files with the State Tax
					 Commission a surety bond or other security acceptable to the State Tax
					 Commission (see section
					 154.11 
					 of this Title), in an amount not less than the amount of additional City of
					 Yonkers income tax surcharge which would be payable if no such surety bond or
					 other security were filed with the State Tax Commission. The filing of such
					 surety bond or other security is conditioned upon the inclusion of amounts
					 accruable in the determination of net State tax for purposes of the City of
					 Yonkers income tax surcharge for one or more subsequent taxable years as if the
					 taxpayer had not changed resident status.