Tax Dept. Defines 'Vendor' for Sales Tax Purposes
In an interview earlier this year, state tax department Deputy Counsel Deborah R. Liebman said that about two-thirds of the petitions her office receives relate to the sales tax, which she describes as much more complicated from an advisory opinion perspective than the income tax perspective. Advisory Opinion TSB-A-13(10)S, issued earlier this month, shows just how true that is, as her office grappled with the case of an unclear vendor.
NYSSCPA tax panels provide statewide services
Freezing temperatures, icy roads and blustery snow usually correspond to the late-winter months of February and March. But at the NYSSCPA, that time of year also signals the beginning of the Society’s annual public tax panels, which are cosponsored by local newspapers and held across the state.
New York Cracks Down on Fraud with New Enforcement System
The waning days of the tax season were particularly busy for those with law enforcement responsibility. Various agencies announced the arrests of multiple preparers in what appear to be major tax fraud cases, the tax department has updated its lists of the most egregious individual and business tax evaders and state tax commissioner Thomas H. Mattox has announced new procedures to reduce tax evasion in the future.
BUDGET UPDATE: A Quick View of Tax Provisions
Tax policy wonks can click their way to New York's Division of the Budget and happily pore over the hundreds of pages of dense legal language that make up the annual state budget, spending days reviewing every line that affects taxation. But for everyone else, the state's Office of Tax Policy Analysis (OPTA) has put together a Summary of Tax Provisions that briefly describes the key tax issues in 24 user-friendly pages. Below are some of the most significant and interesting changes.
Advisory Opinion Contends with a Statistical Quirk
It was probably one of the more unusual problems faced by the Office of Counsel at the state tax department. How do you perform a necessary tax calculation when there are no numbers available? The solution involved not only the typical interpretation of the New York state tax law, but input and involvement from private industry and various government agencies at the city, state and federal level.
Tax & Finance Survey: More of the Same in New York
Once again, in the waning days of the tax season, the Siena Research Institute has surveyed New Yorkers on a range of tax and finance issues. The survey compares results to surveys taken at the same time in 2012 and 2011, and perhaps the most remarkable conclusion is that there's really very little that's remarkable in the year-to-year comparisons.
Understanding—and Changing—Property Assessments
There's just a few days to go before the April 15 deadline, but the income tax is not the only game in town. Just last month the state tax department brushed up its property tax page, and it has posted extensive information about property taxes and property assessments: how they relate to each other and how they differ.
What's the Deal on Tax Statute of Limitations?
In a few more days, taxpayers will be settling their accounts with state and federal taxing authorities—and hope that's the last of it. Of course, there's always the dreaded possibility of a tax audit, of having the IRS or the state tax department asking for every piece of paper and going over every deduction. How long do they have to do this? That is, when can the taxpayer feel safe that a tax return is a done deal? The answer: a long time.
State Rules on the Many Subtleties of "Clubs"
The New York state tax laws can get very specific on definitions, leaving taxpayers unsure of what applies in their circumstances: A long-standing organization of business people devoted to helping its members network wanted to know if the organization dues were subject to sales tax.
NYSDTF: How's It Doing?
Going back to the 2008-2009 fiscal year, the New York State Department of Taxation and finance has set various metrics and tracked its progress in meeting them, quarter to quarter. These brief reports allow taxpayers and tax professionals to compare how the department is doing against its own goals. In recent quarters, where it is kept the metrics the same, it also allows comparisons over time. What has happened in the past year?
IRS personnel address freeze, identity theft
The last vestiges of a freeze that the IRS had instituted over certain examinations and collections activities in parts of the state affected by Superstorm Sandy were expected to be lifted April 1, agency personnel noted during a panel discussion hosted by the NYSSCPA’s Relations with the Internal Revenue Service Committee.
Court Rules Online Sales Tax Is Valid
Amazon and Overstock, two major online retailers, lost their battle in the New York's highest court last week, in their attempt to avoid state sales taxes. This particular sales tax nexus case centered on "associate" or "affiliate" arrangements, as described in the March 28 decision from the Court of Appeals, through which New York-based third-party websites garner commissions by funneling their visitors to retailers' sites.
Nexus: It's Not Just for Sales Tax
With a few exceptions, every business in New York has to pay a state franchise tax, as outlined in state tax law, section 209.1. The state provides a wide definition, saying the tax applies to each company for the privilege of "exercising its corporate franchise, or of doing business, or of employing capital, or of owning or leasing property in this state in a corporate or organized capacity, or of maintaining an office in this state."
Challenging the State Tax Department
Yes, it is possible for taxpayers to take action against a bill or notice from the New York State Department of Taxation and Finance if they disagree with it. The department has even set up a page that explains the rights and procedures in challenging—or "protesting"—a department missive, but to maximize the chances for a good result, taxpayers should follow the instructions and deadline information outlined on the department site and in the letters received.
New York Addresses Definition of Performing Arts
A trapeze artist may be a star in the circus, but that doesn't mean that charges for her performances are free from sales tax, even though a circus itself is. In delving into a very specific situation (how many CPAs can boast of aerial performers among their clientele?), the New York State Department of Taxation and Finance has examined the complex—and controversial—rules and lists of exceptions surrounding state policy on taxation of the performing arts.
State Offers Guidance on Tax Shelters
Taxes may be one of the great certainties in life, but that doesn't stop taxpayers from doing their best to find legal ways to protect their assets using what the government refers to as "transactions that present the potential for tax avoidance"—more commonly known as tax shelters. As explained on the New York State Department of Taxation and Finance website, not only do taxpayers and advisors have to report these to the IRS, they have to inform the state tax department as well.
The Elusive Mortgage Recording Tax Exemption
New York imposes various taxes on the recording of a mortgage within the state, and although certain mortgages get an exemption, the regulations regarding them are complex and detailed. In recent Advisory Opinion TSB-A-13(1)R, the New York State Department of Taxation and Finance had to sort through them and parse narrow definitions to decide whether a particular situation was covered under the exemption regulations.
Offer in Compromise: Make a Deal with the State
Many will be getting tax refunds from the New York State Department of Taxation and Finance, but some will discover they actually owe money to the state—perhaps even more than they can pay. That's where the state's Offer in Compromise program comes in, allowing financially distressed taxpayers—both businesses and individuals—to get a certain amount of relief from overwhelming tax burdens.
N.Y. Tax Department Launches Redesigned Website
While CPAs were busy preparing and filing tax returns, the staffers behind-the-scenes at the New York State Department of Taxation and Finance were also busy giving the departmental website a facelift. Navigation is now easier, with quick access to popular online services and bold links to frequently used pages such as file a return, make a payment, check your refund and register or renew with the state as an employer or vendor.
N.Y. Attorney General Finds Law Tailor-Made for Tax Case
In a case that will be no doubt be remembered for both the novel application of a state law and its farcical aspects, well-known New York City custom tailor Mohanbhai "Mohan" Ramchandani, of Mohan's Custom Tailors, admitted before the New York County Supreme Court to failure to pay nearly $2 million in sales and income taxes.
NYSDTF Defines an Educational Service in Opinion
What exactly is being sold? That's the question the New York State Department of Taxation and Finance had to answer in recently issued Advisory Opinion TSB-A-13(6)S. The decision revolves around certain services a consulting firm provides to companies for their employees. However, the implications go beyond the specifics of the case, which throws light on how the department determines categories for sales tax purposes.
New York Tax Refunds: Special Cases Addressed
In recent weeks, the New York State Department of Taxation and Finance has updated its guidance on income tax refunds. The state has provided details not only on basic tasks, like checking the status of refund, but on particular problems or issues that may delay or alter a state tax refund.
State Explains How to Come Clean on Taxes
With just over five weeks left until the income tax deadline, most taxpayers are focusing on finishing their returns on time—or perhaps happily contemplating a refund. But what about those who still haven't filed last year's New York state returns, or the returns due the year before that? They're on the hook for a range of penalties and criminal charges. However, if they "fess up," as the state Department of Taxation and Finance puts it, they can avoid a lot of grief.
Comptroller Finds Improper STAR Payments
Thanks to the School Tax Relief Program (STAR), New York state picks up part of the tab for school taxes for homeowners, and even more for senior citizens. However, state Comptroller Thomas P. DiNapoli said in a recen press release that the program may be paying out too much.
NYC Addresses EITC at City, State and Federal Levels
New York City has mailed amended federal returns to more than 6,000 New Yorkers who are eligible for the 2009 city, state and federal earned income tax credit (EITC), but did not apply, according to a Feb. 20 announcement from city Finance Commissioner David M. Frankel and Kristin Morse, executive director of the city's Center for Economic Opportunity.
NYSDTF Deputy Counsel Gives Inside Look Into Advisory Opinions
Each year, the state tax department issues dozens of advisory opinions that often intrigue and always educate CPAs, with their detailed focus on important but sometimes obscure corners of the state's tax laws and regulations. To gain further insights into these opinions, their import and how the whole process works, the NYSSCPA E-zine conducted a phone interview with Deputy Counsel Deborah R. Liebman, who signs off on the opinions.
State Cites UCC in Determining When a Lease is a Purchase
Both owners and user of equipment may find financial and practical advantages in a leasing model in some situations, with an outright transfer of ownership in a sale better in others. In fact, some companies have created models that incorporate the best of each choice, blurring the distinction. But New York approaches the sales tax in each situation differently, so no matter how thin the line gets between the two models, it still has to be drawn.
Employee vs. Contractor: the Sales Tax Angle
Companies, and the CPAs and lawyers who work with them, have long faced the challenge that comes from trying to decide who is an employee and who is an independent contractor. IRS guidance on the matter is extensive. But because there's a sales tax component to these decisions as well, New York state also has an interest in the definition.
State Expands "Capital Improvements" Definition
In recently issued Advisory Opinion TSB-A-13(4)S, the New York State Department of Taxation and Finance widened the scope of the capital improvements exemption from sales tax, by ruling that when services are provided as a package, they may be considered all together as a capital improvement.
NYSDTF Outlines Complex Mortgage Tax Scenarios
In New York, you get a mortgage and you have to pay a tax at the time of recording. The tax consists of up to four different kinds of tax, based on location, and together can run to $1.00 or more per $100 of mortgage debt or obligation secured. Although this looks straightforward—there's more to the tax when mortgages get complicated.
Taxpayer advocate criticizes code complexity, underfunding at IRS
In her most recent annual report, released on Jan. 9, IRS Taxpayer Advocate Nina E. Olson said the intricacies of the tax code and the lack of budgetary resources to collect revenue, support taxpayers and launch initiatives are among the biggest hurdles facing the tax system today.
Federal court strikes down IRS tax preparer system
The IRS’s Registered Tax Return Preparer (RTRP) designation—as well as the continuing education and test requirements that go with it—has taken a major hit, thanks to a federal court ruling that says the service lacks the authority to regulate tax preparers. Although CPAs, attorneys and enrolled agents are exempt from the IRS’s continuing education and testing requirements, it’s a surprising development that may hold implications for them as well.
New York Outlines Strict Rules for State Credits
Camille Siano Enders has become the second New York Taxpayer Rights Advocate (TRA), according to a release from the New York State Department of Taxation and Finance. She succeeds Jack Trachtenberg, who left in February 2012 for the private sector. Attorney Siano Enders is bringing both public service and nonprofit experience to her role, which is to act as a mediator between the department and the taxpayer.
New York’s New Taxpayer Rights Advocate Appointed
Camille Siano Enders has become the second New York Taxpayer Rights Advocate (TRA), according to a release from the New York State Department of Taxation and Finance. She succeeds Jack Trachtenberg, who left in February 2012 for the private sector. Attorney Siano Enders is bringing both public service and nonprofit experience to her role, which is to act as a mediator between the department and the taxpayer.
State Announces Lower 9-A Rates for Some
Starting with tax year 2012, eligible qualified New York manufacturers can take advantage of reduced tax rates for tax years 2012 through 2014, as explained in Technical Memorandum TSB-M-13(1)C. The key to the tax break lies in the detailed definitions of what it means to be "eligible and qualified."
State Tax Department Lays Down the Law on Extensions
The income tax filing season hasn't even started yet, but the New York State Department of Taxation and Finance is already providing guidance on applying for an extension. But it's only the filing that's open for extension—the payment is due on April 15.
Sales and Use Taxes: Residency and Other Topics
Sales tax is usually automatic: You buy an item, the vendor tacks it onto the cost, and eventually remits it to the state according to a government-imposed schedule. In some cases the vendor is not obligated to collect New York tax—but that doesn't mean the purchaser gets a free pass. The state government, as it explains in the recently released Purchaser's Obligations to Pay Sales and Use Taxes Directly to the Tax Department, still wants its money.
State Outlines Tax Rules and More for Household Help
If you have a housekeeper, nanny or caretaker, you may be an employer, and you have to follow state tax rules. That's the message of Tax Bulletin MU-350, which summarizes New York reporting and filing requirements, as well as certain federal requirements, for those employing household help. Below are some of the key provisions.
Old-Fashioned Envelopes: Subject to Tax?
For much of 2012, the state tax department's Advisory Opinion Unit spent a lot of time on technology and internet issues, applying regulations to problems that often didn't exist when the laws and rules were written. But in TSB-A-12(31)S, one of the last opinions of 2012, the Office of Counsel took a look at a petition that involved a long-established technology: the paper mailing envelope.
State Outlines Tax Provisions for Senior Citizens and Retirees
The New York State Department of Taxation and Finances is helping its oldest residents—and the CPAs who serve them—with a new 31-page guide that addresses income tax; state, local and federal pensions; STAR eligibility and relevant tax credits. Released in December 2012, the guide is specifically geared to the current tax season. Below are some of the most significant guidance in the document.
IRS Announces Delayed Opening of 1040 Season
The IRS has announced it will begin processing individual tax returns starting on January 30—more than a week later than the originally planned January 22 date. It expects to start accepting both paper and electronic tax returns on January 30 after updating forms and making upgrades to its processing systems to reflect tax changes enacted on January 2.
Special January Rules for IRA Distributions
Although CPAs will be poring over the details of the compromise that ended the fiscal cliff in the coming weeks and months, there's at least one provision that taxpayers will have to act on now: special one-time rules for certain IRA disbursements.
Place of Abode, Sandy and Marshmallows—Your Opinion is Requested
As required by the State Administrative Procedure Act (SAPA), rules published in the New York Codes, Rules and Regulations (NYCRR) generally must be posted for review every five years. The New York State Department of Taxation and Finance found 25 rules due for comment in 2013, and they run a wide range. CPAs, or any other interested parties, have a chance to be heard and possibly make (or prevent) a change in state tax rules.
Ruling Shows Tax Dept. Flexible on IT Models
According to state tax law sec. 1115(a)(37), equipment and services associated with an internet data center are exempt from sales tax. In recently issued Advisory Opinion TSB-A-12(30)S, the NYSDTF showed that even as technology changes and adapts, the regulations can change and adapt with it. In short, an internet data center does not have to be limited to one model to claim the tax exemption.
Taxpayer advocate looks at who is and isn’t compliant
In a decisive vote, the NYSSCPA Board of Directors supported the concept of non–CPA firm ownership during its quarterly meeting on December 4.
The vote passed by a count of 29-1, with four members of the board abstaining. Society leaders have been reviewing the issue extensively since it became clear that related legislation may be introduced in the New York State Legislature in 2013.
State Tax Official Talks of Regulations to Come
The department is going to be updating its regulation of the tax preparer profession, and everyone should keep an eye out for the proposed new rules in 2013. That was the message from Jamie Woodward, executive deputy commissioner of the New York State Department of Taxation and Finance, who spoke at the Dec. 5. NYSSCPA/FAE New York State Taxation Conference.
New Sales Tax System to Become Mandatory
It seems appropriate that as the holiday season began, when stores and the analysts that cover them are talking about their sales, the NYSDTF was talking about the sales tax.
Guide Covers Residency and Lease Terms for Auto Sales Taxation
New York auto dealerships remit more than $1 billion in sales tax each year, according to a December release from the NYSDTF. But just as automobile sales themselves can be complex, so is the way the tax is calculated.
MCTMT: filers can still benefit from claims
Last month, the statute of limitations ran out for employers to submit a protective claim that entitles them to a full refund, should the Metropolitan Commuter Transportation Mobility Tax (MCTMT) be overturned. However, those who missed the deadline aren’t totally out of luck, and self-employed New Yorkers still have plenty of time to file.
New York Offers New Guide for New Businesses
In a Nov. 2012 announcement, New York State Comptroller Thomas P. DiNapoli said that the tax collections of $35.9 billion through October were behind expectations, falling $170.8 million below July estimates and $259.8 million below initial estimates. Considering new estimates going forward, DiNapoli said that adjustments should take into account the additional costs from Sandy.
COLA Provision Kicks in for 2013 State Tax Tables
Over the past year, a lot of new income tax provisions came out of Albany, as summarized in Technical Memorandum TSB-M-12(3)I, issued in February 2012. Although the new tables and other major changes received a lot of attention, another less-discussed provision has only now come into play, but it will make a difference in 2013 paychecks: the automatic cost of living adjustment.
New York Offers New Guide for New Businesses
Earlier this month, the NYSDTF issued its Tax Guide for New Businesses, which covers everything from withholding tax for employees to the boxing and wrestling exhibitions tax. CPAs will no doubt appreciate it for themselves because it is comprehensive and contains links to more technical publications and tax forms. Also, because it is aimed at the owners themselves, CPAs can recommend it as a guide and reference for their clients.
In Decade-Long Pattern, State Rules on Taxability of Intangibles
If NYSDTF sales tax rulings and commentary can be said to have a theme, it seems to be the nature of what is or is not tangible, and how that affects tax rulings. Guidance from the department may be tightly and specifically worded, but the overall pattern has been that basically, a purely electronic deliverable is not subject to sales tax. A recent advisory opinion is no exception.
State Shows Residency Matters in Sales Tax
Anyone who has driven a car in New York City knows how difficult it can be to find parking in town, how expensive it can get, and the lengths some drivers will go to in securing a good spot. Now, the NYSDTF is getting into the act with Advisory Opinion TSB-A-12(28)S, which explores the complex rules surrounding another unpleasant aspect of parking: state, New York City and county taxes that can run to 18 3/8 percent in Manhattan.
State Issues Its Official Guide to Its Tax Law
Essentially a well-annotated index to New York taxation, the annual Handbook of New York State and Local Taxes provides essential guidance in its 55-page guide to every New York tax, from the obvious—income and sales taxes—to the obscure—the New York City taxicab license transfer tax. And the really thorny issues, like the Insurance Tax (Article 33), get especially detailed explanations.
For Sales Tax, the "How" Trumps the "What"
Although it's a narrowly focused decision, Advisory Opinion TSB-A-12(29)S gives some broad insights into how sales tax decisions are made. Tax law and regulations can get very specific on what is or is not subject to sales tax, but sometimes a tax is as much a matter of how an item is sold as how it's manufactured.
Sales Tax Depends on Who Is Renting What to Whom
It might seem obvious in a transaction who is the buyer and who is the seller, but recent Advisory Opinion TSB-A-12(25)S takes four pages and a slew of references to clarify what happens with taxes when three parties are involved. The result: You may be a "seller" for tax purposes without even realizing it.
NYSDTF Lays Down the Law on Alcohol
On a single day—October 16—the Department of Taxation and Finance issued 10 new tax bulletins all on the sale and distribution of alcoholic beverages, as well as retiring three publications as obsolete.
'Pole Dancing' Decision Highlights Sales Tax Confusion
As noted in an earlier NYSSCPA blog, Nite Moves, a strip club outside of Albany, tried to claim it was exempt from sales tax by arguing that the club's dancers fell under the "dramatic or musical arts performance" exemption in 20 CRR-NY 527.10.
Pastors throw down gauntlet to IRS
Daring the IRS to revoke their tax-exempt status, pastors from more than 1,000 religious organizations across the country took to their pulpits Oct. 7 and made specific recommendations about political candidates, as part of the fifth annual “Pulpit Freedom Sunday.” The event, staged by the religious advocacy organization Alliance Defending Freedom, is meant to challenge a tax law ...
State Provides Guidance on MCTMT Protective Claims
In August 2012, Judge R. Bruce Cozzens Jr. of the New York State Supreme Court, in Nassau County, struck down the Metropolitan Commuter Transportation Mobility Tax as unconstitutional, partly because it applies only to 12 counties in the state. Although the state has promised an appeal, questions remain.
State Rules on Tangible Property
In a ruling that applies tax law to technologies that didn't even exist when the laws themselves were written, the NYSDTF has determined that files attached to emails are not subject to sales tax. In short, electrons are not "tangible" in the meaning of the law.
Information Service and Tax: When the Line Is Crossed
For the second time in recent weeks, the NYSDTF has addressed in an advisory opinion the tax status of information services, and how recent technological changes interacted with tax regulations. This new opinion, TSB-A-12(24)S, like the earlier one, was decided largely in favor of the petitioner. But the office of counsel pointed out subtleties and showed how easy it is to cross the line from nontaxable to taxable.
Tax Credit Is Allowed for Second Owner
In Advisory Opinion TSB-A-12(5)C, the NYSDTF addressed the question of how transportable a tax credit can be. The short answer is that at least in some instances, it's not limited to the first buyer. However, that doesn't mean that an infinite number of owners will lead to a infinite number of credits.
Hotels, property and fuel: new rules at the NYSDTF
The New York State Department of Taxation and Finance (NYSDTF) recently announced three proposals and two adoptions on a wide range of tax issues, including fuel use tax regulations, real property tax administration, franchise taxes and hotel use. For the proposals, the department is inviting commentary from interested parties through October; summaries of the proposals as well as instructions for commenting by email or by printed letter are available at www.tax.ny.gov/rulemaker.
IRS unveils a more user-friendly website
Just in time for the final deadline of tax season, the IRS has unveiled the latest incarnation of its website, IRS.gov, with features the agency said had been designed to better reflect how people typically use the site, as well as deliver services at a faster pace.
Software Directory—Tax for the Internet Age
In a recent advisory opinion, the New York State Department of Taxation and Finance had to take a fresh look at old regulations, when making a decision on how tax laws written in pre-Internet days work with current publishing and information service companies.
With Sales Tax, the Fine Print Counts
The New York State Department of Taxation and Finance recently ruled on a case that involved a fine line between what is permanent what is temporary, defining "construction equipment" and explaining why one missing word from the state tax code may have saved a small fortune in sales tax for one company.
MCTMT: A Tax in Limbo?
On August 22, 2012, a Nassau County State Supreme Court judge invalidated the MCTMT because it violated certain “home rule” provisions of the New York State Constitution. The Metropolitan Transportation Authority has vowed to appeal the ruling all the way to the state Court of Appeals.
State Updates Voluntary Disclosure Program Info?
As the year winds down, many taxpayers will no doubt be focusing on the upcoming tax season and what they might owe or get back. But the Department of Taxation and Finance is hoping some will be thinking about the money they owed last year—but haven't paid.
State Advertises Its Tax Payment Plan
What happens to those who can't pay their New York taxes? The Department of Taxation and Finance may be willing to make a deal, as outlined in a September release from the department: The state has a payment plan program, which lets taxpayers pay back taxes in monthly installments.
State Clarifies Emerging Tech Companies for Tax Purposes
Since 2005, New York has provided tax credits for companies that are classified as "qualified emerging technology companies" (QETCs). But figuring out whether a company is in fact a QETC has long been complicated.
Advertising Guidance: Multiple Items, Multiple Taxes
In recently issued Advisory Opinion TSB-A-12(20)S, the New York State Department of Taxation and Finance found there was no simple tax answer for the petitioner, who sells advertising displays in hospitals. Some aspects of the job are taxable, and some are not, and much depends on subtle definitions.
Tax Ruling Highlights Outsourcing Complications
Generally speaking, when something is sold, sales tax is owed. But in today's world, where outsourcing is a common business model, it can be unclear who exactly is doing the buying and selling, and who owes the tax. A recent NYSDTF Advisory Opinion, TSB-A-12(19)S, helps clarify some of the issues.
Delivery Charges Sometimes Taxable, State Rules
Just in time for the final deadline of tax season, the IRS has unveiled the latest incarnation of its website, IRS.gov, with features the agency said had been designed to better reflect how people typically use the site, and deliver services at a faster pace.
IRS Rolls Out Revamped Website
Just in time for the final deadline of tax season, the IRS has unveiled the latest incarnation of its website, IRS.gov, with features the agency said had been designed to better reflect how people typically use the site, and deliver services at a faster pace.
'Permanent Place of Abode' Gets Another Review
It may seem that taxpayers and the NYSDTF will never run out of fine lines to draw and gray areas to clarify when it comes to tax issues surrounding residency in New York. In an August Advisory Opinion, TSB-A-12(4)I, the department's Office of Counsel pored over old cases to determine whether residency is established for a petitioner who was considering buying something more than a hotel room but less than an actual residence.
Hotels, Property and Fuel: New Rules at NYSDTF
At the end of August, the NYSDTF announced three proposals and two adoptions on a wide range of tax issues. Covered are fuel use tax regulations, real property tax administration, franchise taxes and hotel use. For the proposals, the department is inviting commentary from interested parties.
Tax commissioner: tax prep regulations are forthcoming
State regulation of tax return preparers is no longer a matter of if, but of when, according to New York State Tax Commissioner Thomas H. Mattox, who said that the New York State Department of Taxation and Finance would begin working to put new rules in place for the 2013 tax year.
NYSDTF Takes on Child Support Deadbeats
The Department of Taxation and Finance casts a wide net: sales tax, income tax, property tax—and deadbeat parents. By law, if a parent owes four months or more of child support and is not paying by income withholding, NYSDTF steps up, according to a department release.
Film tax clarified in epic bulletin
The New York State Department of Taxation and Finance has issued a lengthy and complex bulletin to provide some guidance to the often confusing world of film taxation, outlining the rules on sales tax exemptions.
State takes a fresh look at 'capital improvements' guidance
Because capital improvement work is exempt from state sales tax and simple repair work is not, contractors and their clients have to draw a fine line between the two. On top of that, the NYSDTF has imposed a variety of rules and advice regarding billing, filing and exemption certificates.
Sales and use tax filing rules updated
At the end of July, the New York State Department of Taxation and Finance updated filing requirements for sales and use tax returns in Tax Bulletin ST-275 (TB-ST-275). The bulletin explains e-filing requirements and how to determine filing frequency.
State revises highway tax rules
Americans, with their car culture, have long celebrated the freedom of the open road. But for some New Yorkers at any rate, that freedom comes with a 26-page manual that covers registration requirements, recordkeeping rules and taxes.
NYS has new sales tax guidance for hospitality industry
In the year since the state Legislature passed a law capping annual property-tax increases, municipal finance officers have struggled to make sense of the new requirements—and remain concerned about how the changes will affect communities already facing budget shortfalls, a panel of local officials said during a recent FAE Government Accounting and Auditing Conference.
Public sector CPAs address tax cap dilemmas
In the year since the state Legislature passed a law capping annual property-tax increases, municipal finance officers have struggled to make sense of the new requirements—and remain concerned about how the changes will affect communities already facing budget shortfalls, a panel of local officials said during a recent FAE Government Accounting and Auditing Conference.
Businesses still uncertain about health reform law despite SCOTUS decision
Although a June 28 Supreme Court decision has ruled in favor of preserving most of the Affordable Care Act (ACA), many businesses remain uncertain about what the decision means for them and how they will adjust to the changing landscape.
State updates years-old electronic filing requirements
In two separate documents, the New York State Department of Taxation and Finance has issued new guidance for the filing of Form NYS-1, Return of Tax Withheld, and quarterly wage and withholding tax information. Extensive technical details are included.
State draws fine lines on medical sales tax
The Office of Counsel at the New York State Department of Taxation and Finance has been busy with medical issues this summer. In four separate opinions on whether certain products are subject to sales tax, Deputy Counsel Deborah R. Liebman looked into the exact definition of "medical," seeking guidance, in some cases, from the U.S. Food and Drug Administration (FDA).
Guidance and rates on mortgage recording tax published
Earlier this month, in Tax Bulletin MR-5 (TB-MR-5), the New York State Department of Taxation and Finance addressed the multi-part mortgage recording tax and provided guidance on when the $10,000 exclusion applies.
NYSDTF lists budget bill tax regs
Amidst the complex series of state budget bills signed into law by Governor Cuomo earlier this year were a variety of income tax changes. On July 5, the NYSDTF summarized them in Technical Memorandum TSB-M-12(6)I. The changes are not new, and most have already been covered since the start of the new fiscal year on April 1, but this is the first official summary of all the key changes published in one document.
Working with new state tax audit guidelines
The New York State Department of Taxation and Finance has posted new versions of its two-page publication The New York State Tax Audit—Your Rights and Responsibilities. It comes in two versions: Publication 130-D (the desk audit) and Publication 130-F (the field audit). Both of them outline what taxpayers can expect and how to handle disagreements.
State tax rules for those just passing through
In Technical Memorandum TSB-M-12(5)I, the NYSDTF clarified rules for employers on who can slip under the wire for withholding purposes, and who can't. With exceptions—and exceptions to the exceptions—it's not always a simple proposition.
New York state takes fresh look at use tax
In tax forms and guidance, they’re usually paired: “the sales and use tax.” But the “use tax” tends to be the forgotten sibling—difficult to track and pay, with rules that consumers are not familiar with. But New York, like many states looking to collect every dime owed, is trying to change that.
Members react to President’s corporate tax rate reform plans
Much has been written about President Barack Obama’s proposal, released back in February, which would lower the corporate income tax rate from its current statutory rate of 35 percent to 28 percent, a shift that would be balanced by closing certain loopholes and ending some subsidies. But what do NYSSCPA members think?
