reglab/statecodes huggingface dataset:
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 1 - IMPOSITION OF TAX › Subpart 1-1 - DEFINITIONS › Section 1-1.13 - Taxable year

Current through Register Vol. 46, No. 28, July 10, 2024
The term "taxable year" means, in most cases, the
						taxpayer's taxable year for Federal income tax purposes, or the part thereof
						during which the taxpayer is subject to the tax imposed by article 9-A. In the
						case of a report made for a fractional part of the year, taxable year means the
						period for which the report is made. A taxable year must be a calendar year or
						a fiscal year ending during a calendar year. A taxable year shall not include
						more than 12 calendar months except in the case of a 52-53 week period. If a
						taxpayer does not have a taxable year for Federal income tax purposes, the
						taxable year must be a calendar year, unless the commissioner authorizes the
						use of a fiscal year. Any reference in article 9-A or 27 or this Subchapter to
						the term tax year or taxable period is a reference to taxable year as defined
						by this section.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 1 - IMPOSITION OF TAX › Subpart 1-1 - DEFINITIONS › Section 1-1.14 - Taxpayer

Current through Register Vol. 46, No. 28, July 10, 2024
Tax Law, sections 208(2), 209(3)
(a) The term "taxpayer" means any corporation
					 that is subject to the tax imposed by article 9-A.
(b) The term "taxpayer" also includes a
					 receiver, referee, trustee, assignee or other fiduciary, or any officer or
					 agent appointed by state or Federal court, who conducts the business of a
					 corporation. For example, a trustee who, under the authority of a Federal
					 court, conducts the business of a corporation in bankruptcy is a taxpayer
					 subject to tax. If the activities of the trustee are limited to the liquidation
					 of the business and the disposition of the assets of the corporation, neither
					 the trustee nor the corporation is subject to the franchise tax.
(c) The term "taxpayer" also includes a
					 corporation that continues to do business after it has been dissolved or
					 surrenders its authority to do business in New York, by proclamation or
					 otherwise. A dissolved corporation or a corporation that surrendered its
					 authority to do business in New York is not taxable under article 9-A if its
					 activities are limited to the liquidation of its business and affairs, the
					 disposition of its assets (other than in the regular course of business), and
					 the distribution of the proceeds.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 1 - IMPOSITION OF TAX › Subpart 1-2 - CORPORATIONS SUBJECT TO TAX › Section 1-2.1 - Domestic corporations subject to tax

Current through Register Vol. 46, No. 28, July 10, 2024
Tax Law, section 209(1) and (8)
(a) The tax is imposed on every domestic
					 corporation, not specifically exempt as provided in section
					 1-2.11  of this Subpart, for the
					 privilege of exercising its corporate franchise, that is to say, for the mere
					 possession of the privilege. Accordingly, a domestic corporation is subject to
					 tax for each fiscal or calendar year, or part thereof, during which it is in
					 existence, regardless of whether it does any business, employs any capital,
					 owns or leases any property, maintains any office, derives any receipts from
					 any activity in this state or engages in any activity, within or without New
					 York State. A domestic corporation is subject to tax even though it carries on
					 its business or derives its receipts entirely outside New York State.
(1) Example.
A corporation is incorporated under the laws of New York
						State on July 1, 2021. It begins to do business on February 1, 2022, setting up
						its books on the basis of a calendar year. The corporation is subject to tax
						from July 1, 2021, to December 31, 2021, since it had the privilege of
						exercising its corporate franchise for that period. It is also subject to tax
						for the period beginning January 1, 2022.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 1 - IMPOSITION OF TAX › Subpart 1-2 - CORPORATIONS SUBJECT TO TAX › Section 1-2.2 - Foreign corporations subject to tax. General

Current through Register Vol. 46, No. 28, July 10, 2024
Tax Law, section 209(1) and (3)
(a)
(1) The
					 tax is imposed on every foreign corporation, not specifically exempt as
					 provided in section
					 1-2.11  of this Subpart, whose
					 activities include one or more of the following:
(i) doing business in New York State in a
					 corporate or organized capacity or in a corporate form; or
(ii) employing capital in New York State in a
					 corporate or organized capacity or in a corporate form; or
(iii) owning or leasing property in New York
					 State in a corporate or organized capacity or in a corporate form; or
(iv) maintaining an office in New York State;
					 or
(v) deriving receipts from
					 activity in New York State.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 1 - IMPOSITION OF TAX › Subpart 1-2 - CORPORATIONS SUBJECT TO TAX › Section 1-2.4 - Foreign corporation - doing business

Current through Register Vol. 46, No. 28, July 10, 2024
Tax Law, section 209(1)
(a) The term doing business is used in a
					 comprehensive sense and includes all activities that occupy the time or labor
					 of people for profit. Regardless of the nature of its activities, every
					 corporation organized for profit and carrying out any of the purposes of its
					 organization is deemed to be doing business for the purposes of the tax. In
					 determining whether a corporation is doing business, it is immaterial whether
					 its activities actually result in a profit or a loss.
(b) Whether a corporation is doing business
					 in New York State is determined by the facts in each case. Consideration is
					 given to such factors as:
(1) the nature,
					 continuity, frequency, and regularity of the activities of the corporation in
					 New York State;
(2) the purposes
					 for which the corporation was organized;
(3) the location of its offices and other
					 places of business;
(4) the
					 employment in New York State of agents, officers and employees; and
(5) the location of the actual seat of
					 management or control of the corporation.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 1 - IMPOSITION OF TAX › Subpart 1-2 - CORPORATIONS SUBJECT TO TAX › Section 1-2.5 - Foreign corporation - employing capital

Current through Register Vol. 46, No. 28, July 10, 2024
Tax Law, section 209(1)
The term employing capital is used in a comprehensive
						sense. Any of a large variety of uses, which may overlap other activities, may
						give rise to taxable status. In general, the use of assets in maintaining or
						aiding the corporate enterprise or activity in New York State will make the
						corporation subject to tax. Employing capital includes such activities as
						maintaining stockpiles of raw materials or inventories, or owning materials and
						equipment assembled for construction.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 1 - IMPOSITION OF TAX › Subpart 1-2 - CORPORATIONS SUBJECT TO TAX › Section 1-2.6 - Foreign corporation - owning or leasing property

Current through Register Vol. 46, No. 28, July 10, 2024
Tax Law, section 209(1)
(a) The owning or leasing of real or personal
					 property within New York State constitutes an activity that subjects a foreign
					 corporation to tax. Property owned by or held for the taxpayer in New York
					 State, whether or not used in the taxpayer's business, is sufficient to make
					 the corporation subject to tax. Property held, stored or warehoused in New York
					 State creates taxable status. Property held as a nominee for the benefit of
					 others creates taxable status. Also, consigning property to New York State may
					 create taxable status if the consignor retains title to the consigned
					 property.
(b) Shares in a
					 cooperative housing corporation will be deemed to be real property owned within
					 New York State if the real property owned or leased by such corporation, as
					 described in IRC section 216(b)(1)(B), is located in New York State.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 1 - IMPOSITION OF TAX › Subpart 1-2 - CORPORATIONS SUBJECT TO TAX › Section 1-2.7 - Foreign corporation - maintaining an office

Current through Register Vol. 46, No. 28, July 10, 2024
Tax Law, section 209(1)
A foreign corporation that maintains an office in New
						York State is engaged in an activity that makes it subject to tax. An office is
						any area, enclosure or facility that is used in the regular course of the
						corporate business. A salesperson's home, a hotel room, or a trailer used on a
						construction job site may constitute an office.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 1 - IMPOSITION OF TAX › Subpart 1-2 - CORPORATIONS SUBJECT TO TAX › Section 1-2.8 - Foreign corporation - deriving receipts

Current through Register Vol. 46, No. 28, July 10, 2024
Tax Law, section 209(1)
(a) A foreign corporation that derives
					 receipts from any activity in New York State is subject to tax. For purposes of
					 this section, "New York receipts" means New York receipts as computed under
					 this Subchapter.
(b) A corporation
					 derives receipts from activity in New York State if its New York receipts equal
					 or exceed $1 million.
(c) A
					 corporation derives receipts from activity in New York State if:
(1) the corporation is part of a unitary
					 group that meets the ownership test under section 210-C and Subpart 6-2 of this
					 Subchapter,
(2) it has New York
					 receipts of at least $10,000, and
(3) the total New York receipts of all the
					 members of the unitary group that each have at least $10,000 of New York
					 receipts is at least $1 million of such receipts.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 1 - IMPOSITION OF TAX › Subpart 1-2 - CORPORATIONS SUBJECT TO TAX › Section 1-2.9 - Activities deemed insufficient to subject foreign corporations to tax

Current through Register Vol. 46, No. 28, July 10, 2024
Tax Law, section 209(2) and (2-a)
(a) A foreign corporation will not be subject
					 to tax under article 9-A because of the activities specified in paragraphs (1)
					 through (10) of this subdivision, provided the corporation is not otherwise
					 doing business, employing capital, owning or leasing property in a corporate or
					 organized capacity, maintaining an office or deriving receipts from activity in
					 New York State.
(1) the maintenance of cash
					 balances with banks or trust companies in New York State;
(2) the ownership of shares of stock or
					 securities kept in New York State in a safe deposit box, safe, vault or other
					 receptacle rented for this purpose, or if pledged as collateral security, or if
					 deposited in safekeeping or custody accounts with one or more banks or trust
					 companies, or brokers who are members of a recognized security
					 exchange;
(3) the taking of any
					 action by any such bank or trust company or broker that is incidental to the
					 rendering of safekeeping or custodian service to such corporation;
(4) the maintenance of an office in New York
					 State by one or more officers or directors of the corporation who are not
					 employees of the corporation;
(5)
					 the keeping of books or records of a corporation in New York State, if such
					 books or records are not kept by employees of such corporation;
(6) the participation in a trade show or
					 shows, regardless of whether the corporation has employees or other staff
					 present at such trade shows, provided the corporation's activity at the trade
					 show is limited to displaying goods or promoting services, no sales are made,
					 any orders received are sent outside New York State for acceptance or rejection
					 and are filled from outside New York State, and provided that such
					 participation is for not more than 14 days, or part thereof, in the aggregate
					 during the corporation's taxable year for Federal income tax
					 purposes;
(7) the mere acquisition
					 of one or more security interests in real or tangible personal property located
					 in New York State;
(8) the mere
					 acquisition of title to property located in New York State through the
					 foreclosure of a security interest;
(9) the mere holding of meetings of the board
					 of directors in New York State, where such directors are not employees of the
					 corporation; or
(10) any
					 combination of the foregoing activities.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 1 - IMPOSITION OF TAX › Subpart 1-2 - CORPORATIONS SUBJECT TO TAX › Section 1-2.10 - Foreign corporations - Public Law 86-272

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Pursuant to
					 Public Law
					 86-272 (15 U.S.C.A. sections 381-384), a
					 foreign corporation is exempt from the tax imposed by article 9-A if its
					 activities are limited to those described in that law. Thus, to be exempt under
					 Public Law
					 86-272, the activities of the corporation in New
					 York State must be limited to one or more of the following:
(1) the solicitation of orders by employees
					 or representatives in New York State for sales of tangible personal property,
					 if the orders are sent outside New York State for approval or rejection and, if
					 approved, are filled by shipment or delivery from a point outside New York
					 State;
(2) the solicitation of
					 orders for sales of tangible personal property by employees or representatives
					 in New York State in the name of or for the benefit of a prospective customer
					 of such corporation, if the customer's orders to the corporation are sent
					 outside New York State for approval or rejection and, if approved, are filled
					 by shipment or delivery from a point outside New York State; and
(3) the solicitation of orders via the
					 Internet in New York State for sales of tangible personal property, if the
					 orders are sent outside New York State for approval or rejection and, if
					 approved, are filled by shipment or delivery from a point outside New York
					 State.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 1 - IMPOSITION OF TAX › Subpart 1-2 - CORPORATIONS SUBJECT TO TAX › Section 1-2.11 - Corporations not subject to tax

Current through Register Vol. 46, No. 28, July 10, 2024
Tax Law, sections 3, 8, 13, 209(4), (9), (10) and
						(12)
(a) A corporation that is subject
					 to any of the following taxes is not subject to tax under article 9-A:
(1) transportation and transmission
					 corporations and associations subject to tax under sections 183 and
					 184;
(2) farmers, fruit growers and
					 other like agricultural corporations organized and operated on a cooperative
					 basis subject to tax under section 185 for tax years prior to January 1,
					 2018;
(3) continuing section 186
					 taxpayers subject to tax under former section 186 as it was in effect on
					 December 31, 1999;
(4) insurance
					 corporations subject to the franchise taxes on insurance corporations imposed
					 by article 33, including health maintenance organizations required to obtain a
					 certificate of authority under article 44 of the Public Health Law;
(5) cooperative corporations described in
					 subdivision 1 or 2 of section 77  of the Cooperative Corporations Law;
(6) captive REITs included in a combined
					 report under article 33; and
(7)
					 captive RICs included in a combined report under article 33.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 1 - IMPOSITION OF TAX › Subpart 1-2 - CORPORATIONS SUBJECT TO TAX › Section 1-2.12 - Change of classification

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 209(1))
(a) A corporation subject to tax under
					 article 9-A may, by reason of a change in the nature of its activities or a
					 change in the ownership or control of the voting powers of its capital stock,
					 cease to be subject to such tax and become taxable under some other article.
					 Conversely, a corporation subject to tax under some other article may, for the
					 same reasons, cease to be taxable thereunder and become subject to tax under
					 article 9-A. The date on which any such change of classification becomes
					 effective will be determined by the facts of each case.
(b) A corporation that becomes subject to tax
					 under article 9-A during one of its fiscal or calendar years by reason of a
					 change in classification is treated in the same manner as a corporation that
					 became subject to tax during such year.
(c) A corporation that ceases to be subject
					 to the franchise tax imposed by article 9-A during one of its fiscal or
					 calendar years by reason of a change of classification is treated, insofar as
					 article 9-A is concerned, in the same manner as a corporation that is dissolved
					 or ceases to be taxable in New York State during such year.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 1 - IMPOSITION OF TAX › Subpart 1-2 - CORPORATIONS SUBJECT TO TAX › Section 1-2.14 to 1-2.17 - Repealed

Current through Register Vol. 46, No. 28, July 10, 2024
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 1 - IMPOSITION OF TAX › Subpart 1-2 - CORPORATIONS SUBJECT TO TAX › Section 1-2.18 to 1-2.24 - Repealed

Current through Register Vol. 46, No. 28, July 10, 2024
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 1 - IMPOSITION OF TAX › Subpart 1-2 - CORPORATIONS SUBJECT TO TAX › Section 1-2.25 - Repealed

Current through Register Vol. 46, No. 28, July 10, 2024
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 1 - IMPOSITION OF TAX › Subpart 1-3 - [Repealed] › Section 1-3.1

Current through Register Vol. 46, No. 28, July 10, 2024
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 1 - IMPOSITION OF TAX › Subpart 1-3 - [Repealed] › Section 1-3.2

Current through Register Vol. 46, No. 28, July 10, 2024
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 1 - IMPOSITION OF TAX › Subpart 1-3 - [Repealed] › Section 1-3.3

Current through Register Vol. 46, No. 28, July 10, 2024
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 1 - IMPOSITION OF TAX › Subpart 1-3 - [Repealed] › Section 1-3.4

Current through Register Vol. 46, No. 28, July 10, 2024
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 1 - IMPOSITION OF TAX › Subpart 1-3 - [Repealed] › Section 1-3.5

Current through Register Vol. 46, No. 28, July 10, 2024
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 2 - ACCOUNTING PERIODS AND METHODS › Subpart 2-1 - ACCOUNTING PERIODS › Section 2-1.1 - General

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, sections 208(10), 209(1))
(a) Generally, for Federal income tax
					 purposes, a taxpayer's taxable year is the same as its accounting period. In
					 most cases, the taxable year for which the franchise tax imposed by article 9-A
					 is to be computed and for which a franchise tax report is to be filed shall be
					 the same as the taxpayer's taxable year for Federal income tax purposes, or
					 that portion of the Federal taxable year for which the taxpayer is subject to
					 the tax imposed by article 9-A. The taxable year under article 9-A generally
					 will be the accounting period covered by the taxpayer's Federal income tax
					 return, whether such period be a calendar year, a properly established fiscal
					 year (which includes an accounting period consisting of 52 - 53 weeks) or an
					 accounting period of less than 12 months as permitted or required under the
					 IRC. If a taxpayer does not have a taxable year for Federal income tax
					 purposes, the tax must be computed and a report must be filed for a calendar
					 year, unless the commissioner authorizes the use of some different accounting
					 period.
(b) The tax imposed by
					 article 9-A is imposed for each fiscal or calendar year of the taxpayer, or any
					 part thereof, during which the taxpayer has a corporate franchise granted by
					 New York State or does business, employs capital, owns or leases property in a
					 corporate or organized capacity, maintains an office, or derives receipts from
					 activity in New York State. Therefore, for purposes of article 9-A, the
					 taxpayer's first taxable year begins, in the case of a domestic corporation, on
					 the date of its incorporation or, if elected, on such other date for the
					 beginning of its corporate existence as set forth in the certificate of
					 incorporation, not to exceed 90 days after the filing of such certificate, and
					 ends on the last day of such fiscal or calendar year, or on the last day it is
					 subject to the tax imposed by article 9-A, whichever comes first. In the case
					 of a foreign corporation, the taxpayer's first taxable year begins on the date
					 it begins to do business, employ capital, own or lease property, maintain an
					 office, or derive receipts from activity in New York State and ends on the last
					 day of such fiscal or calendar year, or on the last day it is subject to the
					 tax imposed by article 9-A, whichever comes first.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 2 - ACCOUNTING PERIODS AND METHODS › Subpart 2-1 - ACCOUNTING PERIODS › Section 2-1.2 - Calendar-year taxpayers

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 208(10))
(a) A taxpayer that reports on the basis of a
					 calendar year for Federal income tax purposes must report on the same basis for
					 purposes of article 9-A. A calendar year is a period of 12 calendar months
					 ending on December 31st, or a period of less than 12 calendar months beginning
					 on the date a taxpayer becomes subject to tax and ending on December 31st. A
					 calendar year also includes, in the case of a taxpayer that changes the period
					 on the basis of which it keeps its books from a fiscal year to a calendar year,
					 the period from the close of its last fiscal year to and including the
					 following December 31st.
(b) A
					 taxpayer shall use a calendar year as its accounting period and report on a
					 calendar-year basis in the following situations:
(1) the taxpayer keeps its books on the basis
					 of a calendar year;
(2) the
					 taxpayer keeps its books on the basis of any period ending on any day other
					 than the last day of a calendar month, except in the case of a taxpayer that
					 keeps its books on the basis of a 52-53 week accounting period;
(3) the taxpayer does not keep
					 books;
(4) the taxpayer is not
					 required to file a Federal income tax return, unless the use of a fiscal year
					 or 52-53 week period basis of reporting has been authorized by the
					 commissioner; or
(5) the taxpayer
					 has made no election as to the use of either a fiscal- or calendar-year basis
					 of reporting.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 2 - ACCOUNTING PERIODS AND METHODS › Subpart 2-1 - ACCOUNTING PERIODS › Section 2-1.3 - Fiscal-year taxpayers

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 208(10))
(a) A taxpayer that reports on the basis of a
					 fiscal year for Federal income tax purposes must report on the same basis for
					 purposes of article 9-A. A fiscal year is a period not longer than 12 calendar
					 months, or any shorter period beginning on the date the taxpayer becomes
					 subject to tax and ending on the last day of any month other than December. A
					 fiscal year also includes, in the case of a taxpayer that changes the period on
					 the basis of which it keeps its books from a calendar year to a fiscal year, or
					 from one fiscal year to another fiscal year, the period from the close of its
					 last calendar or fiscal year up to the date designated as the close of its new
					 fiscal year. A fiscal year also includes a 52-53 week accounting period if the
					 taxpayer has elected such period for Federal income tax purposes.
(b) A taxpayer reporting on a fiscal-year
					 basis must keep its books on such basis.
(c) Examples.
Example 1: A domestic corporation is incorporated in New
						York State on November 19, 2021. The corporation selects the fiscal-year basis
						of reporting and uses the date November 30th as the last day of its fiscal
						year. The corporation is subject to tax for the period November 19, 2021, to
						November 30, 2021, and must file a report for that period. The report must be
						filed on or before March 15, 2022.
Example 2: A foreign corporation, which reports for
						Federal income tax purposes on a fiscal-year basis, uses September 30th as the
						last day of its fiscal year. The corporation leases a store in New York City on
						March 1, 2021. The corporation continues to do business throughout the year
						2021. Since the taxpayer reports for Federal income tax purposes on a
						fiscal-year basis, its first taxable year for purposes of article 9-A begins
						March 1, 2021, and its tax is computed on the basis of an accounting period
						that begins October 1, 2020, and ends September 30, 2021. The report must be
						filed on or before January 15, 2022.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 2 - ACCOUNTING PERIODS AND METHODS › Subpart 2-1 - ACCOUNTING PERIODS › Section 2-1.4 - Taxpayers using a 52-53 week year

Current through Register Vol. 46, No. 28, July 10, 2024
(a) A taxpayer that reports on the basis of a
					 52-53 week accounting period for Federal income tax purposes may report on the
					 same basis for purposes of article 9-A. A 52-53 week period must end on the
					 same day of the week each year, and end always on whatever date that day of the
					 week last occurs in a calendar month, or on whatever date that day of the week
					 falls that is nearest the last day of a calendar month.
(b) If a 52-53 week accounting period is used
					 and the period starts within seven days from the first day of any calendar
					 month, the taxable year will be deemed to have begun on the first day of that
					 calendar month. If a 52-53 week accounting period ends within seven days from
					 the last day of any calendar month, the taxable year will be deemed to have
					 ended on the last day of that month.
(c) If a taxpayer uses a 52-53 week
					 accounting period for purposes of reporting its Federal income taxes and
					 becomes subject to tax under article 9-A, the taxpayer may be required to file
					 reports for two taxable years during an accounting period for which one Federal
					 return is required.
(d) A taxable
					 year of 52-53 weeks will be deemed a period of 12 months.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 2 - ACCOUNTING PERIODS AND METHODS › Subpart 2-1 - ACCOUNTING PERIODS › Section 2-1.5 - Change of accounting period

Current through Register Vol. 46, No. 28, July 10, 2024
(a) If a taxpayer's accounting period for
					 Federal income tax purposes is changed, the taxable year and accounting period
					 for which the taxpayer's report is filed under article 9-A must be changed at
					 the same time to coincide with the new Federal income tax accounting period and
					 taxable year.
(b) Where a taxable
					 year or accounting period of less than 12 months results from a change of
					 accounting period, the taxpayer must file a report and pay the tax due for the
					 period beginning from the close of the last taxable year or accounting period
					 for which a report was required to be filed to the date designated as the close
					 of its new accounting period or taxable year. Where a change in taxable year
					 from or to a 52-53 week accounting period, or from one 52-53 week period to a
					 different 52-53 week period, results in a period of either 359 days or more or
					 6 days or less, the tax for the 359-day-or-more period must be computed as if
					 it were a full taxable year, and the period of six days or less must be added
					 to and deemed part of the following taxable year. In the case of a period
					 consisting of more than 6 days and less than 359 days, a report must be filed
					 for such period.
(c) A taxpayer
					 whose accounting period is changed for Federal income tax purposes is not
					 required to apply for or obtain permission to make a similar change with
					 respect to reports required under article 9-A. In such a case, however, the
					 taxpayer must submit, with the first report filed for the new accounting period
					 under article 9-A, a copy of the consent of the Commissioner of Internal
					 Revenue to the change for Federal income tax purposes. A taxpayer that changes
					 its accounting period for Federal income tax purposes without the prior
					 approval of the Commissioner of Internal Revenue must submit, with the first
					 report filed for the new accounting period under article 9-A, a statement
					 indicating the authority for the Federal change.
(d) In the case of a taxpayer that has an
					 established accounting period for Federal income tax purposes, no change of
					 accounting period for purposes of article 9-A (other than one required by
					 reason of change of the Federal accounting period as set forth in subdivision
					 (a) of this section) will be permitted.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 2 - ACCOUNTING PERIODS AND METHODS › Subpart 2-2 - ACCOUNTING METHODS › Section 2-2.1 - General

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 208(9))
(a) The accounting method or basis on which
					 business income is to be computed must be the same as the taxpayer's method of
					 accounting for Federal income tax purposes. However, when the commissioner
					 deems it necessary in order to properly reflect the business income of the
					 taxpayer, the commissioner may determine the taxable year or period in which
					 any item of income or deduction must be included, without regard to the method
					 of accounting used by the taxpayer.
(b) In the absence of an accounting method
					 for Federal income tax purposes, business income must be computed in accordance
					 with the method regularly employed in keeping the books of the taxpayer,
					 provided such method properly reflects business income. If the books of a
					 taxpayer do not properly reflect business income, or if no books are kept, the
					 computation of business income must be made in such manner as the commissioner
					 deems necessary to properly reflect business income.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 2 - ACCOUNTING PERIODS AND METHODS › Subpart 2-2 - ACCOUNTING METHODS › Section 2-2.2 - Change of accounting method

Current through Register Vol. 46, No. 28, July 10, 2024
(a) If a taxpayer's method of accounting for
					 Federal income tax purposes is changed, the accounting method employed in
					 determining business income for purposes of article 9-A must be changed at the
					 same time to the method approved for Federal income tax purposes. When a change
					 of accounting method occurs, any adjustments that are determined to be
					 necessary solely by reason of the change in order to prevent amounts from being
					 duplicated or omitted must be taken into account to the extent they are
					 required to be taken into account in determining the taxpayer's Federal taxable
					 income.
(b) A taxpayer whose method
					 of accounting is changed must submit, with its first report in which the new
					 accounting method is used, a copy of the consent of the Commissioner of
					 Internal Revenue, together with complete details of any adjustments with
					 respect to items of income or deduction.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 2 - ACCOUNTING PERIODS AND METHODS › Subpart 2-3 - CESSATION PERIODS › Section 2-3.1 - Cessation period

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 209(1))
(a) The franchise tax is imposed for all or
					 any part of each taxable year during which a taxpayer exercises its corporate
					 franchise, does business, employs capital, owns or leases property in a
					 corporate or organized capacity, maintains an office, or derives receipts from
					 activity in New York State. Accordingly, every taxpayer is required to pay a
					 tax measured by business income (or other applicable basis) up to the date on
					 which it ceases to possess a franchise if a domestic corporation, or ceases to
					 do business, employ capital, own or lease property in a corporate or organized
					 capacity, maintain an office, or derive receipts from activity in New York
					 State if a foreign corporation, regardless of whether or not such corporation
					 has been granted written authority by the New York State Department of State to
					 do business in New York State.
(b)
					 A domestic corporation may cease to possess a franchise as a result of its
					 dissolution, merger or consolidation into another corporation, or the
					 revocation or annulment of its charter.
(c) A taxpayer may cease to be subject to tax
					 under article 9-A because of a change in the nature of its activities or a
					 change in classification. In such event, the taxpayer must pay a tax measured
					 by business income (or other applicable basis) up to the date of the change. In
					 some cases, a corporation may then become subject to tax under some other
					 article of the Tax Law.
(d) A
					 corporation that is a member of a group taxed on the basis of a combined
					 report, and that ceases to be subject to tax under article 9-A, may, in the
					 discretion of the commissioner, be permitted to be included in the next
					 combined report of the group. Application for permission to report in such
					 manner must be mailed to the commissioner. The corporation that ceases to be
					 subject to tax under article 9-A must, at the time of such application, pay a
					 tax of no less than the fixed dollar minimum described in section
					 210(1)(d).
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 3 - COMPUTATION OF TAX › Subpart 3-1 - TAX BASES › Section 3-1.1 - Computation of tax

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 210(1) and (1-c))
(a) Generally, a corporation subject to the
					 tax imposed by article 9-A is required to pay a tax computed by one of the
					 three bases set forth in this subdivision and must pay whichever results in the
					 highest tax:
(1) the business income base
					 tax;
(2) the capital base tax;
					 and
(3) the fixed dollar minimum
					 tax.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 3 - COMPUTATION OF TAX › Subpart 3-1 - TAX BASES › Section 3-1.2 - Business income base tax

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, sections 210(1)(a), 209(6))
(a)
(1)
					 Generally, the business income base is the measure of the tax if such
					 calculation results in an amount of tax greater than the capital base tax and
					 greater than the fixed dollar minimum tax.
(2) The business income base is the
					 corporation's total business income apportioned to New York State minus the
					 prior net operating loss conversion subtraction and the net operating loss
					 deduction.
(3) To compute the tax
					 measured by the business income base, the corporation must multiply its
					 business income base by the tax rate specified in section 210(1)(a).
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 3 - COMPUTATION OF TAX › Subpart 3-1 - TAX BASES › Section 3-1.3 - Capital base tax

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, sections 209(5) and (7), 210(1) and
						(1-c))
(a)
(1) Generally, the capital base is the
					 measure of the tax if such calculation results in an amount of tax that is
					 greater than or equal to the business income base tax and greater than the
					 fixed dollar minimum tax.
(2) The
					 capital base is the portion of the corporation's total business capital
					 apportioned to New York State.
(3)
					 To compute the tax measured by the capital base, the corporation must multiply
					 its capital base by the tax rate specified in section 210(1)(b).
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 3 - COMPUTATION OF TAX › Subpart 3-1 - TAX BASES › Section 3-1.4 - Fixed dollar minimum tax

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
					 Generally, the fixed dollar minimum is the measure of the tax if such
					 calculation results in an amount of tax that is greater than or equal to the
					 business income base tax and greater than or equal to the capital base tax. The
					 amount of the fixed dollar minimum tax determined in section 210(1)(d) varies
					 by the amount of New York receipts and the type of taxpayer.
(b)
(1)
					 Where a group of corporations files a combined report, the fixed dollar minimum
					 tax attributable to the designated agent generally is the measure of the tax
					 for the combined group if such calculation results in an amount of tax greater
					 than or equal to the combined business income base tax and greater than or
					 equal to the combined capital base tax. In addition, the tax on a combined
					 report must include the fixed dollar minimum tax for each member of the
					 combined group that is a taxpayer, other than the designated agent. Any
					 corporation included in the combined report that is not a taxpayer is not
					 required to pay a fixed dollar minimum tax.
(2) Each taxpayer member of the combined
					 group, including the designated agent, must compute its own fixed dollar
					 minimum tax based on its own New York receipts. Such receipts must be computed
					 on a separate company basis and determined without the consideration of
					 intercorporate eliminations or deferrals.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 3 - COMPUTATION OF TAX › Subpart 3-1 - TAX BASES › Section 3-1.5

Current through Register Vol. 46, No. 28, July 10, 2024
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 3 - COMPUTATION OF TAX › Subpart 3-2 - GENERAL RULES › Section 3-2.1 - Correcting distortions of income or capital

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, section 211(5))
(a) In case it shall appear to the
					 commissioner that any agreement, understanding or arrangement exists between
					 the corporation and any other corporation or any person or firm, whereby the
					 activity, business, income or capital of the corporation within New York State
					 is improperly or inaccurately reflected, the commissioner is authorized in the
					 commissioner's discretion to adjust items of income (including gains and
					 losses), deductions, and capital. In addition, the commissioner is authorized
					 in the commissioner's discretion to disregard assets and the receipts derived
					 therefrom in computing the business apportionment fraction or the MCTD
					 apportionment percentage, provided that any income directly traceable thereto
					 is also excluded from entire net income (ENI) so as to equitably determine the
					 tax.
(b) The commissioner may
					 include in the ENI of any taxpayer the fair profits that, but for an agreement,
					 arrangement or understanding as described in subdivision (a) of this section,
					 the taxpayer might have derived from any transaction:
(1) where the taxpayer conducts its activity
					 or business under any agreement, arrangement, or understanding in such manner
					 as either directly or indirectly to benefit its members or stockholders, or any
					 of them, or any person or persons directly or indirectly interested in such
					 activity or business, by entering into any transaction at more or less than a
					 fair price that, but for such agreement, arrangement or understanding, might
					 have been paid or received thereof; or
(2) where the taxpayer, a substantial portion
					 of the voting power of whose capital stock is owned or controlled either
					 directly or indirectly by another corporation, enters into any transaction with
					 such other corporation on such terms as to create an improper loss or net
					 income.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 3 - COMPUTATION OF TAX › Subpart 3-2 - GENERAL RULES › Section 3-2.2 - Adjusting tax bases to period covered by report

Current through Register Vol. 46, No. 28, July 10, 2024
(Tax Law, sections 208(9)(h), 210(2))
(a) Entire net income (ENI).
(1) Except in the case of a New York S
					 termination year, if the ENI required to be reported under article 9-A is for a
					 period different from the period covered by the taxpayer's Federal income tax
					 return, the taxpayer's ENI must be prorated to correspond with the period
					 covered by the report under article 9-A. The prorated ENI is computed as
					 follows:
(i) adjust Federal taxable income to
					 arrive at ENI in the manner set forth in section
					 3-3.1  of this Part;
(ii) multiply ENI by the number of calendar
					 months, or major parts thereof, covered by the report under article 9-A;
					 and
(iii) divide the result by the
					 number of calendar months, or major parts thereof, covered by the return for
					 Federal income tax purposes. Other exempt income and investment income must be
					 similarly prorated.
New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 3 - COMPUTATION OF TAX › Subpart 3-2 - GENERAL RULES › Section 3-2.3 - Fair market value

Current through Register Vol. 46, No. 28, July 10, 2024
(a) The fair
					 market value (FMV) of any asset owned by the taxpayer is the price at which a
					 willing seller, not compelled to sell, will sell and a willing purchaser, not
					 compelled to buy, will buy.
(b) The
					 FMV, on any date, of stocks, bonds and other securities regularly traded on an
					 exchange, or in an over-the-counter market, is the mean between the highest and
					 lowest selling prices on that date. If there were no sales on the valuation
					 date, such value is the mean between the highest and the lowest selling prices
					 on the nearest date, within a reasonable time, on which there were sales. If
					 actual sales within a reasonable time are not available, the FMV is the mean
					 between the bona fide bid and asked prices on the valuation date or the nearest
					 date within a reasonable time.
(c)
					 If the actual sales prices or bona fide bid and asked prices within a
					 reasonable time are not available, or if, by reason of the character or extent
					 of the taxpayer's investments or for any other reason, such prices are not
					 truly indicative of value, the FMV is ascertained as follows:
(1) in the case of shares of stock, on the
					 basis of the issuing corporation's net worth, earning power, book value,
					 dividends paid, and all other relevant factors;
(2) in the case of bonds and other
					 securities, by giving consideration to various factors, including the soundness
					 of the security, the interest yield, and the date of maturity.