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History
- Referred to investigations and government operations
- Referred to investigations and government operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Relates to filing of amended tax returns in certain cases
In Assembly Committee · Ways And Means · Sponsor George Amedore
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to filing of amended personal income tax returns
Purpose
This bill equates the rights and responsibilities of a New York taxpayer, who is also a taxpayer in another state, when the other state makes changes or corrections in income tax returns filed with that state, to the rights and responsibilities of a New York taxpayer when the Internal Revenue Service makes changes or corrections in a federal income tax return.
Summary of provisions
Section one states Legislative findings that the complexity of income tax laws, particularly affecting income earned in one state by a taxpayer residing in another state, has contributed to unfair situations. The Legislature determines to remedy this problem by treating changes to a New York taxpayer's obligations to another state in the same fashion as changes made to federal obligations. Section two amends section 659 of the Tax Law to provide that the rights and responsibilities of a New York taxpayer when his or her income tax obligations to another state are changed or corrected by that state will be the same as currently provided when a change or correction in federal tax obligations is made by the Internal Revenue Service. Section three amends section 687 of the Tax Law to expand a cross reference to section 659 by deleting restrictive references to "federal" changes or corrections. Section four enacts a transition provision which provides to current taxpayers an extension of time for filing a claim for credit of taxes paid to another state in a similar fashion as the amendments to sections 659 and 687 will provide to future taxpayers. Section five is the effective date.
Read the full memo (694 words)
Existing law
Existing section 659 of the Tax Law establishes the rights and responsibilities of a New York taxpayer when that taxpayer's federal income tax return is changed or corrected by the Internal Revenue Service. Generally, the taxpayer must file an amended New York State income tax return reflecting the changes within 90 days after a final federal determination. Existing section 687 of the Tax Law then provides that when a taxpayer files an amended state return pursuant to section 659, that taxpayer may claim a New York State credit or refund within two years of the final federal determination.
Justification
The Tax Law has long recognized the inter-relationship between federal income tax returns and New York State income tax returns filed by the same taxpayer. When changes or corrections to federal returns are made by the Internal Revenue Service, a New York taxpayer is given time to file parallel amendments to his or her state return, and to pay additional taxes or to receive the benefit of additional credits or refunds. There is no equivalent provision when a resident New York taxpayer files income tax returns with both New York and another state or states. Because of this omission, a taxpayer may be substantially harmed if another state makes a change -- after the effectiveness of New York's statute of limitations -- which results in increased taxes owed to that state, but reduced taxes owed to New York. In that case, the taxpayer must pay the other state, but is too late to claim a refund from New York, causing the taxpayer to pay the same tax twice. This bill would treat the other state's change the same as if it were a change made by the IRS, so the New York taxpayer has two years from the change in order to file for a credit or refund, regardless of the statute of limitations on the original New York filing. LEGISLATIVE HISTORY : 2006: S.6683B/A.9896B, Passed Senate. 2007: S.920/A.1644, Passed Senate 2008: S.920/A.10103, Passed Senate/Referred to Ways & Means
Fiscal implications
Minimal. Any credits or refunds properly belong to the taxpayer, anyway.
Local fiscal implications
None.
Effective date
Immediate. Transition provisions permit existing taxpayers to file for applicable credits on returns filed up to three years past the current statute of limitations, while the new Tax Law provisions are applicable to tax years starting on or after January 1, 2010.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.