2006 New York Code - Requirements Concerning Returns, Notices, Records And Statements.

 
    §   658.   Requirements   concerning  returns,  notices,  records  and
  statements.  (a) General. The tax commission may  prescribe  regulations
  as  to  the  keeping  of  records,  the  content and form of returns and
  statements, and the filing of copies of federal income tax  returns  and
  determinations.     The  tax  commission  may  require  any  person,  by
  regulation or notice served upon such  person,  to  make  such  returns,
  render  such statements, or keep such records, as the tax commission may
  deem sufficient to show whether or not such person is liable under  this
  article  for  tax  or  for  collection  of tax. The tax commission shall
  provide a space on the  form  of  returns  wherein  the  taxpayer  shall
  indicate the school district in which the taxpayer is a resident.
    (b)  Identifying numbers.--(1) When required by regulations prescribed
  by the tax commission:
    (A) Inclusion in returns.-- Any person required under the authority of
  this article to make  a  return,  statement,  or  other  document  shall
  include  in  such  return,  statement or other document such identifying
  number as may be prescribed for securing proper identification  of  such
  person.
    (B)  Furnishing  number to other persons.-- Any person with respect to
  whom a return, statement,  or  other  document  is  required  under  the
  authority  of this article to be made by another person shall furnish to
  such other person such identifying  number  as  may  be  prescribed  for
  securing his proper identification.
    (C)  Furnishing  number of another person.-- Any person required under
  the authority of this article to make  a  return,  statement,  or  other
  document  with  respect  to another person shall request from such other
  person, and shall include  in  any  such  return,  statement,  or  other
  document,  such  identifying  number  as  may be prescribed for securing
  proper identification of such other person.
    (2) Limitation.--(A) Except as provided in subparagraph (B), a  return
  of any person with respect to his liability for tax, or any statement or
  other  document in support thereof, shall not be considered for purposes
  of subparagraphs (B) and (C) of subsection (1) as a  return,  statement,
  or other document with respect to another person.
    (B)  For  purposes  of  subparagraphs (B) and (C) of subsection (1), a
  return of an estate or trust with respect to its liability for tax,  and
  any  statement or other document in support thereof, shall be considered
  as  a  return,  statement,  or  other  document  with  respect  to  each
  beneficiary of such estate or trust.
    (3)  Requirement  of  information.-- For purposes of this section, the
  tax commission is authorized to  require  such  information  as  may  be
  necessary to assign an identifying number to any person.
    (c) Partnerships, limited liability companies and S corporations.
    (1)  Partnerships.  Every  partnership  having  a  resident partner or
  having  any  income  derived  from  New  York  sources,  determined   in
  accordance  with  the applicable rules of section six hundred thirty-one
  as in the case of a nonresident individual, shall make a return for  the
  taxable year setting forth all items of income, gain, loss and deduction
  and  such  other  pertinent  information  as  the  commissioner  may  by
  regulations and instructions prescribe. Such return shall be filed on or
  before the fifteenth day of the fourth month following the close of each
  taxable year except that the due date for the return  of  a  partnership
  consisting  entirely  of nonresident aliens shall be the date prescribed
  for the filing of its federal partnership return for the  taxable  year.
  For  purposes of this paragraph, "taxable year" means a year or a period
  which would be a taxable year of the partnership if it were  subject  to
  tax under this article.
    * (2)  S  corporations.  Every  S  corporation  for which the election
  provided for in subsection (a) of section six hundred sixty is in effect
  shall make a return for the taxable year  setting  forth  all  items  of
  income,  loss  and deduction and such other pertinent information as the
  tax  commission  may  by  regulations  and  instructions prescribe. Such
  return shall be filed on or before the fifteenth day of the third  month
  following the close of each taxable year.
    * NB Applies to taxable years prior to December 31, 1986
    * (2)  S  corporations.  Every  S  corporation  for which the election
  provided for in subsection (a) of section six hundred sixty is in effect
  shall make a return for the taxable year  setting  forth  all  items  of
  income,  loss  and deduction and such other pertinent information as the
  commissioner of taxation and finance may by regulations and instructions
  prescribe. Such return shall be filed on or before the fifteenth day  of
  the third month following the close of each taxable year.
    * NB Applies to taxable years beginning after December 31, 1986
    * (3) Filing fees. Every subchapter K limited liability company, every
  limited  liability  company  which  is  a disregarded entity for federal
  income tax  purposes  and  every  limited  liability  partnership  under
  article  eight-B  of  the  partnership  law  and  every  foreign limited
  liability partnership, which  has  any  income  derived  from  New  York
  sources,  determined  in accordance with the applicable rules of section
  six hundred thirty-one of this article as in the case of  a  nonresident
  individual,  shall, within thirty days after the last day of the taxable
  year, make a payment of a filing fee. The amount of the filing fee shall
  be the product of (a) one hundred dollars and (b) the number of  members
  of  such  company or number of partners of such partnership, as the case
  may be, as of the last day of the taxable year, but in  no  event  shall
  such  fee  be  less  than five hundred dollars nor more than twenty-five
  thousand dollars. Such minimum filing fee shall not apply to any  single
  member  limited  liability  company  which  is  a disregarded entity for
  federal income tax purposes. Where such fee is not timely paid, it shall
  be paid upon notice and demand and shall be assessed, collected and paid
  in the same manner as taxes, and for such purposes any reference in this
  article to tax imposed by this article shall be deemed also to refer  to
  the fee prescribed herein.
    * NB Effective until January 1, 2007
    * (3)  Filing  fees. Every subchapter K limited liability company, and
  every  limited  liability  partnership  under  article  eight-B  of  the
  partnership  law  and every foreign limited liability partnership, which
  has any income derived from New York sources, determined  in  accordance
  with  the  applicable  rules of section six hundred thirty-one as in the
  case of a nonresident individual, shall, within thirty  days  after  the
  last day of the taxable year, make a payment of a filing fee. The amount
  of  the filing fee shall be the product of (a) fifty dollars and (b) the
  number of members  of  such  company  or  number  of  partners  of  such
  partnership, as the case may be, as of the last day of the taxable year,
  but  in  no  event shall such fee be less than three hundred twenty-five
  dollars nor more than ten thousand dollars. Where such fee is not timely
  paid, it shall be paid upon notice and demand  and  shall  be  assessed,
  collected  and  paid  in the same manner as taxes, and for such purposes
  any reference in this article to tax imposed by this  article  shall  be
  deemed also to refer to the fee prescribed herein.
    * NB Effective January 1, 2007
    (4)  Estimated  tax of nonresident partners, members and shareholders.
  (A) General. Every entity which is a partnership, other than a  publicly
  traded  partnership  as  defined in section 7704 of the federal Internal
  Revenue Code, subchapter K limited liability company or an S corporation
  for which the election provided for in subsection  (a)  of  section  six
  hundred  sixty of this article is in effect, which has partners, members
  or shareholders  who  are  nonresident  individuals,  as  defined  under
  subsection  (b)  of  section  six  hundred  five  of  this article, or C
  corporations, and which has any income derived from  New  York  sources,
  determined  in  accordance  with  the  applicable  rules  of section six
  hundred thirty-one of this article as  in  the  case  of  a  nonresident
  individual,  shall  pay  estimated  tax on such income on behalf of such
  partners, members or  shareholders  in  the  manner  and  at  the  times
  prescribed  by subsection (c) of section six hundred eighty-five of this
  article. For purposes of this paragraph, the term "estimated tax"  shall
  mean  a  partner's,  member's or shareholder's distributive share or pro
  rata  share  of  the  entity  income  derived  from  New  York  sources,
  multiplied  by the highest rate of tax prescribed by section six hundred
  one of this article for the taxable  year  of  any  partner,  member  or
  shareholder   who  is  an  individual  taxpayer,  or  paragraph  (a)  of
  subdivision one of section two hundred  ten  of  this  chapter  for  the
  taxable  year  of  any  partner,  member  or  shareholder  which  is a C
  corporation, whether or not such C corporation is subject to  tax  under
  article  nine,  nine-A, thirty-two, or thirty-three of this chapter, and
  reduced by the distributive share or  pro  rata  share  of  any  credits
  determined   under   section   one  hundred  eighty-seven,  one  hundred
  eighty-seven-a, six hundred six, fourteen hundred fifty-six  or  fifteen
  hundred  eleven  of  this chapter, whichever is applicable, derived from
  the entity.
    (B) Treatment of  payment.  Any  payment  by  the  entity  under  this
  paragraph  with  respect  to  a partner, member or shareholder who is an
  individual shall be deemed to be a  payment  of  estimated  tax  by  the
  partner, member or shareholder pursuant to subsection (c) of section six
  hundred eighty-five of this article.
    (C)  Additions  to tax. (i) If an entity required by this paragraph to
  pay estimated tax on behalf of a partner, member or shareholder fails to
  do so, such entity shall pay a penalty of fifty dollars  for  each  such
  failure for each such partner, member or shareholder, unless it is shown
  that  such  failure  is  due  to reasonable cause and not due to willful
  neglect.
    (ii) In the case of an underpayment of estimated tax  by  the  entity,
  there  shall  be  added  to the estimated tax required to be paid by the
  entity under this paragraph, an amount determined pursuant to subsection
  (c) of section six hundred eighty-five of this article.
    (D) Exceptions. (i) This paragraph shall not apply with respect  to  a
  partner,  member  or  shareholder  for whom estimated tax required to be
  paid under subparagraph (A) of this paragraph for the  taxable  year  of
  the  partner,  member  or  shareholder  does  not  exceed  three hundred
  dollars.
    (ii) This paragraph shall not  apply  with  respect  to  any  partner,
  member or shareholder if the entity is authorized by the commissioner to
  file  a group return and such partner, member or shareholder has elected
  to be included on the group return, or if the commissioner has issued  a
  waiver  of  withholding  pursuant  to this section. The commissioner may
  issue such waivers in respect of partners, members or  shareholders  who
  are  not  subject to New York income tax, or who establish that they are
  filing New York income tax returns and paying estimated taxes when  due,
  and  in  other  circumstances  in which the commissioner determines that
  withholding is not necessary to ensure collection of income tax  on  New
  York source income allocable to the nonresident or C corporation.
    (E) Information statements. Every entity required under this paragraph
  to  pay estimated taxes for any of its partners, members or shareholders
  shall furnish, within thirty days after such estimated tax is  paid,  to
  each such partner, member or shareholder a written statement showing the
  estimated  taxes paid by the entity on behalf of such partner, member or
  shareholder  and any other information the commissioner shall prescribe,
  including any information necessary to identify each partner, member  or
  shareholder  on  whose  behalf  the entity has paid estimated taxes. The
  entity shall  provide  to  the  commissioner  information  necessary  to
  identify  the  estimated tax paid by the entity for each partner, member
  or shareholder and  information  necessary  to  identify  each  partner,
  member or shareholder of the partnership, limited liability company or S
  corporation,  whether  or  not  estimated tax was paid for such partner,
  member or shareholder by the entity, at such times and in such manner as
  the commissioner shall prescribe.
    (d) Information at source.
    (1) The commissioner of taxation and finance may prescribe regulations
  and instructions requiring returns of information to be made  and  filed
  on  or  before  February twenty-eighth of each year as to the payment or
  crediting in any calendar year of amounts of six hundred dollars or more
  to any taxpayer under this article. Such returns may be required of  any
  person,  including  lessees  or mortgagors of real or personal property,
  fiduciaries, employers, and all officers and employees of this state, or
  of any municipal corporation or political  subdivision  of  this  state,
  having  the  control, receipt, custody, disposal or payment of interest,
  rents,   salaries,   wages,    premiums,    annuities,    compensations,
  remunerations,  emoluments or other fixed or determinable gains, profits
  or income,  except  interest  coupons  payable  to  bearer.  Information
  required to be furnished pursuant to paragraph four of subsection (a) of
  section six hundred seventy-four on a quarterly combined withholding and
  wage  reporting  return  covering the last calendar quarter of each year
  and relating to tax withheld on wages paid by an employer to an employee
  for the full calendar year, shall constitute the return  of  information
  required to be made under this section with respect to such wages.
    (2)   (A)   The  commissioner  shall  be  authorized  to  require,  by
  regulation, that any or all of the returns of information referred to in
  paragraph one of this subsection, the  quarterly  combined  withholding,
  wage  reporting and unemployment insurance returns required by paragraph
  four of subsection (a) of  section  six  hundred  seventy-four  and  the
  reports required by section one hundred seventy-one-h of this chapter be
  filed  on  magnetic  media  or  in  other  machine  readable  form. Such
  regulations shall conform, to the extent practicable, with corresponding
  federal  regulations  and  instructions  promulgated  pursuant  to   the
  authority of section six thousand eleven of the federal Internal Revenue
  Code.  Any  person  required  to  file  two hundred fifty or more of the
  returns referred to in paragraph one of this subsection may be  required
  to file such returns on magnetic media or in other machine readable form
  pursuant to the provisions of this paragraph.
    (B)  A  filer  may  seek  exemption  from  the  magnetic  media filing
  requirement for  a  particular  period,  if  the  filer  proves  to  the
  satisfaction of the commissioner of taxation and finance that imposition
  of  such  a  requirement for that period would result in undue hardship.
  The commissioner shall take into account (among other relevant  factors)
  the ability of the filer to comply at reasonable cost with such a filing
  requirement.
    (C)  The  regulations  provided for in this paragraph may include, but
  shall not be limited to, the following:
    (i) a description of the kinds of magnetic media which can be used  to
  satisfy the filing requirement;
    (ii) a description of the kinds of returns and classes of filers to be
  subject  to  the  magnetic  media  or other machine readable form filing
  requirement; and
    (iii)  procedures governing the voluntary submission by magnetic media
  or other machine readable form of all or  any  portion  of  the  returns
  described in this paragraph.
    (3)  The  commissioner  may  by  regulation or instruction require the
  filing of a report annually by the comptroller or program manager of the
  New  York  state  college  choice  tuition  savings  program,  or  their
  designee,  setting forth the names and identification numbers of account
  owners, designated beneficiaries  and  distributees  of  family  tuition
  accounts,   the  amounts  contributed  to  such  accounts,  the  amounts
  distributed from such accounts and the nature of such  distributions  as
  qualified   withdrawals   or   as   withdrawals   other  than  qualified
  withdrawals, and any such other  information  as  the  commissioner  may
  require regarding the taxation under this article of amounts contributed
  to  or  withdrawn  from such accounts. The commissioner may require that
  any  such  report  also  be  made  to  the  account  owner,   designated
  beneficiary or distributee of any such account.
    (e)  Notice of qualification as receiver, etc. Every receiver, trustee
  in  bankruptcy,  assignee  for  benefit  of  creditors,  or  other  like
  fiduciary  shall  give  notice  of  his qualification as such to the tax
  commission, as may be required by regulation.
    (g) Requirements applicable to tax return preparer.
    (1) Signature of tax return preparer. Any  individual  who  is  a  tax
  return  preparer and prepares any return or claim for refund, shall sign
  such return or claim  for  refund  in  accordance  with  regulations  or
  instructions prescribed by the commissioner.
    (2)  Furnishing  identifying  numbers.  Any return or claim for refund
  which is prepared by a tax return preparer shall include the identifying
  number of the preparer required by paragraph one of this  subsection  to
  sign such return or claim for refund. In addition, where such individual
  preparer  is  an  employee of an employer which is a tax return preparer
  with respect to such return or claim for refund, or where such  preparer
  is  a  partner  in  a  partnership  which  is a tax return preparer with
  respect to such return or claim for refund, then such  return  or  claim
  for refund shall also include the identifying number of such employer or
  partnership.  Such  identifying  numbers  shall  be as prescribed by the
  commissioner in order  to  secure  the  proper  identification  of  such
  individual preparer, partnership or employer. The responsibility for the
  inclusion of such identifying numbers shall be as set forth in paragraph
  two  of  subsection  (u)  of  section  six  hundred  eighty-five of this
  article.
    (3) Furnishing copy to taxpayer.  Any  person  who  is  a  tax  return
  preparer  with respect to any return or claim for refund shall furnish a
  completed copy of such return or claim for refund to  the  taxpayer  not
  later  than  the  time  such return or claim for refund is presented for
  such taxpayer's signature.
    (4) Copy or list to be retained by tax return preparer. Any person who
  is a tax return preparer with respect to any return or claim for  refund
  shall  for  a three year retention period described in paragraph nine of
  this subsection:
    (A) retain a completed copy of such return or  claim  for  refund,  or
  retain,  on  a  list, the name and identification number of the taxpayer
  for whom such return or claim was prepared, and
    (B) make such copy or list available for inspection  upon  request  by
  the commissioner.
    (5)  Tax  return  preparer  defined. For purposes of this article, the
  term  "tax  return  preparer"  means  any  person   who   prepares   for
  compensation,  or  who employs or engages one or more persons to prepare
  for compensation any return or claim for refund. The  preparation  of  a
  substantial  portion of a return or claim for refund shall be treated as
  if it were the preparation of such return or claim for refund. Where  an
  employer  and  one  or  more  employees  of such employer are tax return
  preparers with respect to the same return or claim for refund, or  where
  a  partnership  and  one  or  more  partners in such partnership are tax
  return preparers with respect to the same return or  claim  for  refund,
  for  purposes  of  paragraphs  three  and  four of this subsection, such
  employer or such partnership shall be deemed to be the sole  tax  return
  preparer.  A  person shall not be a "tax return preparer" merely because
  such person--
    (A) furnishes typing, reproducing, or other mechanical assistance,
    (B) prepares a return or claim for refund of the employer  (or  of  an
  officer  or  employee  of  the  employer)  by  whom  he is regularly and
  continuously employed, or
    (C) prepares as a fiduciary a return  or  claim  for  refund  for  any
  person.
    (6) Person defined. For purposes of this subsection, the term "person"
  includes  an individual, corporation (including a dissolved corporation)
  or partnership.
    (7) Return defined. For purposes of this subsection, the term "return"
  shall mean any return required under this article.
    (8) Claim for refund defined. For purposes  of  this  subsection,  the
  term  "claim  for  refund"  shall  mean  a claim for refund of or credit
  against any tax imposed under this article, and shall include any  claim
  for  refund  of  any  credit treated as an overpayment of tax under this
  article.
    (9) Retention period defined. For purposes  of  this  subsection,  the
  term "retention period" shall mean:
    (A)  in the case of a tax return, the period ending the later of three
  years after the due date of such return (without regard  to  extensions)
  or  three years after the date such return was presented to the taxpayer
  for such taxpayer's signature, and
    (B) in the case of a claim for refund, the period ending  three  years
  after  such  claim  for  refund  was  presented to the taxpayer for such
  taxpayer's signature.
    (10) Mandatory electronic filing  by  certain  tax  return  preparers.
  (A)(i)  If a tax return preparer prepared more than two hundred original
  returns during  the  calendar  year  beginning  on  January  first,  two
  thousand  five, and if, in the calendar year beginning on January first,
  two thousand  six,  such  tax  return  preparer  prepares  one  or  more
  authorized  returns using tax software, then, for such calendar year two
  thousand six and for  each  subsequent  calendar  year  thereafter,  all
  authorized  returns  prepared by such tax return preparer shall be filed
  electronically,  in  accordance  with  instructions  prescribed  by  the
  commissioner.
    (ii)  If a tax return preparer prepared more than one hundred original
  returns during any calendar year beginning on or  after  January  first,
  two  thousand  six,  and  if,  in  any succeeding calendar year such tax
  return preparer prepares  one  or  more  authorized  returns  using  tax
  software,   then,  for  such  succeeding  calendar  year  and  for  each
  subsequent calendar year thereafter, all authorized returns prepared  by
  such  tax  return  preparer shall be filed electronically, in accordance
  with instructions prescribed by the commissioner.
    (B) For purposes of this paragraph:
    (i) "Electronic" means computer technology;  provided,  however,  that
  the  commissioner  may,  in  instructions,  provide  that use of barcode
  technology  will  also   satisfy   the   mandatory   electronic   filing
  requirements of this section.
    (ii)  "Authorized return" means any return required under this article
  which the commissioner has authorized to be filed electronically.
    (iii) "Original return" means a return  required  under  this  article
  that  is  filed,  without regard to extensions, during the calendar year
  for which that return is required to be filed.
    (iv) "Tax software" means any computer software program  intended  for
  tax return preparation purposes.