N.Y. Comp. Codes R. & Regs. Tit. 20 §§ 1-2.12

Current through Register Vol. 46, No. 36, September 4, 2024

Section 1-2.12 - Change of classification

(Tax Law, section 209(1))

(a) A corporation subject to tax under article 9-A may, by reason of a change in the nature of its activities or a change in the ownership or control of the voting powers of its capital stock, cease to be subject to such tax and become taxable under some other article. Conversely, a corporation subject to tax under some other article may, for the same reasons, cease to be taxable thereunder and become subject to tax under article 9-A. The date on which any such change of classification becomes effective will be determined by the facts of each case.

(b) A corporation that becomes subject to tax under article 9-A during one of its fiscal or calendar years by reason of a change in classification is treated in the same manner as a corporation that became subject to tax during such year.

(c) A corporation that ceases to be subject to the franchise tax imposed by article 9-A during one of its fiscal or calendar years by reason of a change of classification is treated, insofar as article 9-A is concerned, in the same manner as a corporation that is dissolved or ceases to be taxable in New York State during such year.

N.Y. Comp. Codes R. & Regs. Tit. 20 §§ 1-2.12

Adopted New York State Register December 27, 2023/Volume XLV, Issue 52, eff. 12/27/2023