N.Y. Comp. Codes R. & Regs. tit. 20 § 105.11

Current through Register Vol. 46, No. 45, November 2, 2024

Section 105.11 - Change of accounting methods

Tax Law, § 605(a)(4)(A)

(a) Except where a taxpayer does not have a method of accounting for Federal income tax purposes, a taxpayer may not change such taxpayer's method of accounting for New York State personal income tax purposes unless a similar change has been made for Federal income tax purposes.

(b) Where a taxpayer's method of accounting is changed for Federal income tax purposes, such taxpayer's method of accounting for New York State personal income tax purposes must be similarly changed. A copy of the consent of the Commissioner of Internal Revenue to the change must be attached to the taxpayer's first New York State personal income tax return filed under the new method or, if no consent is required, a statement to that effect referring to the particular provision of the Internal Revenue Code or regulations thereunder authorizing the change. Also see sections 105.12 and 105.13 of this Part with regard to other information required to be submitted where a taxpayer's method of accounting is changed.

(c) Where a taxpayer does not have a method of accounting for Federal income tax purposes, an application for permission to change a method of accounting for New York State personal income tax purposes must be made within 180 days after the beginning of the taxable period to which the proposed change will relate. Such application must be accompanied by a statement specifying the nature of the taxpayer's business, such taxpayer's present method of accounting, the method to which such taxpayer desires to change, the taxable year in which the change is to be effected, the classes of items to receive different treatment under the new system, and all items which would be duplicated or omitted as a result of the proposed change. If such taxpayer must later choose a method of accounting for Federal income tax purposes and such method differs from the taxpayer's method used for New York State personal income tax purposes, the taxpayer must conform such taxpayer's New York State method of accounting to the method of accounting chosen for Federal income tax purposes.

N.Y. Comp. Codes R. & Regs. Tit. 20 § 105.11