Our New York City CPA and New York City tax accountants are dedicated to keeping our clients up to date on the latest NYC and New York State tax changes. Recently, a New York Department of Finance memorandum discussed the requirement for taxpayers to report federal and New York State determinations affecting their New York City business corporation, general corporation, banking corporation, and unincorporated business tax bases.

Taxpayers are required to report all applicable tax base adjustments on amended returns indicating any additional tax or refund due. The deadline is 90 days for amending separate tax returns and 120 days for amending combined group returns. Amended returns are required for all tax periods subject to tax base adjustments, even if the Department of Finance has previously audited, or is currently auditing, those periods. The amended returns must show: the tax base adjustments; the recalculations needed to incorporate the adjustments into the New York City tax calculation; and the new NYC tax due.

Template schedules for each tax type will be available on the department’s website, but taxpayers reporting adjustments before the templates are published should submit manually created schedules providing the required information. A taxpayer that cannot properly compute its corrected City tax liability within the statutory period may submit a written request for an accelerated audit so that the department can determine the correct liability. The memorandum, which supersedes Statement of Audit Procedure PP-2008-10, also discusses interest and penalties and explains how to report New York State apportionment changes.

If you have questions about New York City business taxes, please contact our NYC tax and accounting firm.