Publication March 01, 2017

Transcription

1 GRAY TOLUB 1 LLP Focusing on Domestic & International Taxation, Real Estate, Corporate, and Trust & Estate Matters. GT Publication March 01, 2017 AUTHORS Armin Gray SUBJECT Tax Deadlines State and Local Tax New York State NYS CHANGE IN FILING DEADLINES As a friendly reminder, to match changes to federal income tax return deadlines, New York State has made the following changes to state income tax returns for calendar year 2016: Partnerships: the new is 3/15; S Corporations: no change; Corporations: the new date is 4/15; Trusts: no change. Please further note the following: The return deadline for IT-204-LL (for partnerships and limited liability companies which are disregarded entities, which have New York Source income or expense) is 3/15. There were certain changes relating to the mandatory first installment payment for certain corporations. The details of these changes are described under New York State Department of Taxation and Finance Technical Memorandums TSB-M- 16(9)C, (7)l and TSB-M-16(10)C, which are attached hereto.

2 Client Alert Page 2 ABOUT US Our law firm focuses on domestic and international taxation, real estate, corporate, immigration, and trust and estate matters. Our clients primarily consist of high-net worth individuals, family offices, and multinational companies. We look forward to assisting you. CONTACTS If you have any questions regarding the matters discussed in this Client Alert, please contact the following members or anyone of your regular GRAY TOLUB LLP contacts. ARMIN GRAY agray@graytolub.com BENJAMIN TOLUB btolub@graytolub.com GRAY TOLUB LLP GRAY TOLUB LLP, Financial District, 11 Broadway, Suite 615, New York, NY Tel Fax connect@graytolub.com (c) GRAY TOLUB LLP. All Rights Reserved This Client Alert is provided by GRAY TOLUB LLP and its affiliates for educational and informational purposes only and is not intended and should not be construed as legal advice. Mere receipt of this Client Alert or ing us does not create an attorney-client relationship. While we do our best to ensure there are no errors or provide updates when the law changes, no assurances can be given in this regard. Therefore, you may not rely on any information provided herein. The contents herein may be considered attorney advertising.

3 Technical Memorandum Amendments to Tax Return Due Dates and Extensions This memorandum explains recently enacted amendments to the Tax Law that changed New York State tax return s for partnerships, trusts, and most C corporations. Part Q of Chapter 60 of the Laws of 2016 amended the Tax Law to change the due dates of certain New York State tax returns. 1 The New York State tax returns impacted are: Form IT-204, Partnership Return (and attachments); Form IT-204-LL, Partnership, Limited Liability Company (LLC) and Limited Liability Partnership (LLP) Filing Fee Payment Form; and most C corporation tax returns. In addition, the Acting Commissioner of Taxation and Finance has exercised her authority to change the length of time of automatic extensions for partnership and fiduciary tax returns to conform to the comparable federal extensions. 2 Note: See the table beginning on page 4 for a compilation of all the and extension changes. Although certain corporate tax return s were changed, the mandatory first installment (MFI) of the tax and the corresponding MTA surcharge are still required to be paid on or before the 15 th day of the 3 rd month following the close of each tax year. Chapter 60 of the Laws of 2016 also changed the tax year used as the basis to determine whether a corporation must make MFI payments and used in the computation of the MFI for most corporations subject to tax under Articles 9, 9-A, and In addition, most MFI payments will no longer be made on a corporation s prior year tax return or with its request for an extension of time to file. A separate form, Form CT-300, Mandatory First Installment (MFI) of Estimated Tax for Corporations, must be submitted. See TSB-M-16(10)C, Changes to the Mandatory First Installment of Estimated Tax for Corporations, for information about the changes to the MFI. 1 In general, these changes conform to recent changes to federal tax filing deadlines contained in section 2006 of Public Law Differences between the state and federal filing deadlines are noted in this TSB-M. 2 See Regulation section No changes were made to the computation of the MFI or the MFI payment s for New York S corporations and continuing section 186 corporations. These corporations will continue to remit the MFI payment with the filing of a return or extension of time to file. The amount of the MFI payment will continue to be computed using the preceding year s tax. Sections 183 and 185 corporations are not required to make MFI payments. W A Harriman Campus, Albany NY

4 - 2 - Partnerships, LLCs, LLPs, and trusts Due dates and extensions For tax years beginning on or after January 1, 2016, most partnerships are required to file their partnership tax returns and attachments on or before the 15 th day of the 3 rd month following the close of each tax year. 4 For calendar-year filers, this is. In addition to this change, the Acting Commissioner is exercising her authority to conform the length of time of the partnership extension to that of the comparable federal form. This change allows partnerships to request a single, six-month automatic extension of time to file their New York State partnership returns. Partnerships, LLCs, and LLPs subject to the annual filing fee must now file Form IT-204-LL, Partnership, Limited Liability Company, and Limited Liability Partnership Filing Fee Payment Form, and make the payment of the filing fee on or before the 15 th day of the 3 rd month following the close of each tax year. Previously, this form was required to be filed within 60 days of the close of the tax year. This change was effective for tax years ending on or after April 13, No extensions are allowed for the filing of this form or the payment of the fee. Fiduciary returns (Form IT-205, Fiduciary Return) continue to be due on or before the 15 th day of the 4th month following the close of the tax year. For calendar-year filers, this is April 15. For fiduciary extensions, the Acting Commissioner is exercising her authority to conform the length of time of the automatic extension to that of the extension for the comparable federal form, which is now five and one-half months. Corporations Article 9-A and Article 33 s and extensions For tax years beginning on or after January 1, 2016, all New York C corporations (except DISCs 5 ) that are subject to tax under Article 9-A and Article 33 corporations are required to file tax returns on or before the 15 th day of the 4 th month following the close of each tax year. For calendar-year filers this is April 15. No changes were made to the length of time of extensions for corporate tax returns. New York C corporations that are subject to tax under Article 9-A and Article 33 corporations may request an automatic six-month extension of time to file, and may request up to two additional three-month extensions. Requests for automatic six-month extensions must be made on or before the of the tax return. Requests for additional extension(s) must be filed before the expiration of any existing extension. 4 A partnership consisting entirely of nonresident aliens is required to file a New York partnership tax return on the same date that its federal partnership return is due for the tax year. 5 Domestic International Sales Corporations (DISCs) are required to file tax returns on or before the 15 th day of the 9 th month following the close of the tax year.

5 - 3 - New York S corporations continue to file their tax returns on or before the 15 th day of the 3 rd month following the close of the tax year. For calendar-year filers this is. New York S corporations may request a six-month extension of time to file. Additional extensions beyond six months will not be granted. Article 9 s and extensions For tax years beginning on or after January 1, 2016, corporations subject to tax under Article 9, sections 184, 184-a, 186-a, 186-c, and 186-e are required to file tax returns on or before April 15 following the close of the calendar year. Corporations subject to tax under Article 9, sections 183 and 185, are required to report and pay an annual tax computed on the basis of its capital stock within New York during the preceding year. Beginning in 2017, these reports are due on or before April 15 of each year. 6 However, the MTA surcharge imposed under section 183-a (payable on Form CT-183-M, Transportation and Transmission Corporation MTA Surcharge Return) will be due on or before, Beginning in 2018, the of the Form CT-183-M will be April 15. Article 9 taxpayers may be granted an initial three-month extension of time to file. If these taxpayers cannot file within the three-month extension period, they may request up to three additional three-month extensions. A request for an initial three-month extension must be made on or before the of the tax return. Requests for additional extension(s) must be filed before the expiration of any existing extension. Article 9, continuing section 186 taxpayers are still required to file Forms CT-186, Utility Corporation Franchise Tax Return, and CT-186-M, Utility Corporation MTA Surcharge Return, on or before. (Tax Law sections 171, 183-a(5), 186-a(4), 186-e(6), 192(1), 192(2), 209(1)(a), 211(1), 658(c)(1), 658(c)(3)(A), and 1515(a)) (Regulation sections 6-4.4, 31.1, and 48.3) 6 The tax imposed under section 185 has been repealed beginning in The return due on April 15, 2017, is the last tax return required for taxpayers subject to tax under section 185 of the Tax Law.

6 - 4 - Due Date and Extension Changes Table These changes are generally effective for tax years beginning on or after January 1, Article 22, Personal, calendar-year filers Tax Return Prior New Extended s under new law IT-204, Partnership Return, including attachments: IT-204-IP, New York Partner s Schedule K-1 IT-204.1, New York Corporate Partners Schedule K IT-204-CP, New York Corporate Partner s Schedule K-1 IT-204-LL, Partnership, Limited Liability Company, and Limited Liability Partnership Filing Fee Payment Form April 15 September 15 March 1 IT-205, Fiduciary Return April 15 (tax years ending on or after April 13, 2016) April 15 (unchanged) No extension September 30 Fiscal-year partnership returns are due on the 15 th day of the 3 rd month following the close of the tax year. A six-month extension may be requested from that date. Filing fee payment forms for fiscal-year filers are due on the 15 th day of the 3 rd month following the close of the tax year. No extension is allowed. Fiscal-year fiduciary returns are due on the 15 th day of the 4 th month following the close of the tax year. A five and one-half month extension may be requested from that date. Article 9, Tax Return Prior New Extended s under new law (additional extensions) CT-183, Transportation and Transmission Corporation Franchise Tax Return on Capital Stock April 15 (starting in 2017) CT-183-M, Transportation and Transmission Corporation MTA Surcharge Return April 15 (starting in 2018)

7 - 5 - CT-184, Transportation and Transmission Corporation Franchise Tax Return on Gross Earnings CT-184-M, Transportation and Transmission Corporation MTA Surcharge Return CT-185, Cooperative Agricultural Corporation Franchise Tax Return CT-186, Utility Corporation Franchise Tax Return CT-186-M, Utility Corporation MTA Surcharge Return CT-186-E, Telecommunications Tax Return and Utility Services Tax Return CT-186-P, Utility Services Tax Return- Gross Income CT-186-P/M, Utility Services MTA Surcharge Return April 15 (2017 only) (unchanged) (unchanged) June 15 (September 15) (December 15) () June 15 (September 15) (December 15) () All Article 9 taxpayers are calendar-year filers. Article 9 taxpayers may request a three-month extension from the original of their returns. Up to three additional three-month extensions may be requested. Article 9-A, Business Corporation Franchise Tax, calendar-year filers Tax Return CT-3, General Business Corporation Franchise Tax Return Prior New Extended s under new law (additional extensions)

8 - 6 - CT-3-M, General Business Corporation MTA Surcharge Return CT-3-A, General Business Corporation Combined Franchise Tax Return, including attachment: CT-3-A/BC, Member s Detail Report CT-3-S, New York S Corporation Franchise Tax Return, including attachment: CT-34-SH, New York S Corporation Shareholders' Information Schedule (unchanged) September 15 Fiscal-year New York C corporation returns are due on or before the 15 th day of the 4 th month following the close of the tax year. A six-month extension may be requested from that date. Up to two additional three-month extensions may be requested. Fiscal-year New York S corporation returns are due on or before the 15 th day of the 3 rd month following the close of the tax year. One six-month extension may be requested from that date. Article 33, Insurance Corporations, calendar-year filers Tax Return CT-33, Life Insurance Corporation Franchise Tax Return CT-33-NL, Non-Life Insurance Corporation Franchise Tax Return CT-33-A, Life Insurance Corporation Combined Franchise Tax Return CT-33-C, Captive Insurance Company Franchise Tax Return CT-33-M, Insurance Corporation MTA Surcharge Return Prior New Extended s under new law (additional extensions) Fiscal-year Article 33 corporation returns are due on or before the 15th day of the 4th month following the close of each tax year. A six-month extension may be requested from that date. Up to two additional three-month extensions may be requested.

9 - 7 - Note: A TSB-M is an informational statement of existing department policies or of changes to the law, regulations, or department policies. It is accurate on the date issued. Subsequent changes in the law or regulations, judicial decisions, Tax Appeals Tribunal decisions, or changes in department policies could affect the validity of the information presented in a TSB-M.

10 `` Technical Memorandum TSB-M-16(10)C Changes to the Mandatory First Installment of Estimated Tax for Corporations This memorandum explains amendments to the Tax Law that changed the mandatory first installment (MFI) for certain corporations and changes to the procedures for remitting the MFI for payments due on or after, Legislative changes to the MFI Part Q of Chapter 60 of the Laws of 2016 amended the Tax Law to require certain corporations to use the second preceding year s tax 1 as the basis for determining whether the corporation must make a mandatory first installment (MFI) payment and the amount of the MFI payment. New York C corporations subject to tax under Article 9-A, and corporations subject to tax under Article 9, sections 184, 186-a, and 186-e, and Article 33, 2 whose tax after credits for the second preceding tax year exceeds $1,000, are required to pay an MFI of estimated tax. If the second preceding year s tax after credits exceeds $1,000 and the corporation is subject to the MTA surcharge, it is also required to pay an MFI of estimated MTA surcharge. Corporate taxpayers that do not have a second preceding tax year because a return was not required to be filed do not have to make an MFI payment. These corporate taxpayers still must make a declaration of estimated tax, and pay the remaining three installments of estimated tax and MTA surcharge with Form CT-400, Estimated Tax for Corporations, on the dates determined in accordance with Regulation section In order to properly determine the amount of the second, third, and fourth payments, the effect of not having made an MFI payment must be taken into consideration and reflected in the remaining payments. In addition, corporations must compute the MFI by multiplying the tax (or MTA surcharge) imposed for the second preceding tax year by: 25%, if the franchise, excise, or gross receipts tax imposed for the second preceding tax year was equal to or less than $100,000, or 40%, if the franchise, excise, or gross receipts tax imposed for the second preceding tax year exceeded $100,000. Note: Authorized life insurance corporations taxable under Article 33 must use 40% if the tax imposed for the second preceding tax year exceeded $1, See Tax Law sections 197-b(6), 213-b(f), and 1514(f). 2 No changes were made to the MFI for New York S corporations and continuing section 186 corporations. Section 183 and 185 corporations are not required to make MFI payments. W A Harriman Campus, Albany NY

11 - 2 - TSB-M-16(10)C These legislative changes apply to payments due on and after, Changes to how an MFI payment is made Part Q also made changes to certain corporate tax return s (see, Amendments to Tax Return Due Dates and Extensions). However, no changes were made to the s for MFI payments. Corporations required to make MFI payments continue to pay their MFIs on or before the 15 th day of the 3 rd month following the close of each tax year. Beginning with MFI payments due on or after, 2017, the payment of the MFI of estimated tax and MTA surcharge for most corporate taxpayers can no longer be made with the prior year s tax return or MTA surcharge return or with the request for an extension of time to file such returns. 3 MFI payments must be made on new Form CT-300, Mandatory First Installment (MFI) of Estimated Tax for Corporations. This form will be available on the Tax Department s website. This change applies to New York C corporations subject to tax under Article 9-A; corporations subject to tax under Article 9, sections 184, 184-a, 186-a, 186-c, and 186-e; and insurance corporations subject to tax under Article 33. The remaining installments of estimated tax and MTA surcharge will continue to be paid with Form CT-400, Estimated Tax for Corporations, on the dates determined in accordance with Regulation section (Tax Law sections 171, 197-b(1)(a), 197-b(6), 213-b(a), 213-b(d), 213-b(f), 1085(c)(1), 1087(i),1514(a), and 1514(d)-(f)) (Regulation section 7-2.3) Note: A TSB-M is an informational statement of existing department policies or of changes to the law, regulations, or department policies. It is accurate on the date issued. Subsequent changes in the law or regulations, judicial decisions, Tax Appeals Tribunal decisions, or changes in department policies could affect the validity of the information presented in a TSB-M. 3 New York S corporations and continuing section 186 corporations are still required to remit their MFI payment with the filing of a return or extension of time to file. Section 183 and 185 corporations are not required to make MFI payments.