N.Y. Comp. Codes R. & Regs. tit. 20 § 171.10

Current through Register Vol. 46, No. 25, June 18, 2024

Section 171.10 - Extension of withholding of New York State personal income tax to annuity payments if requested by payee

Tax Law, § 671(b)(2)(C)

(a)Determining New York State personal income tax to be withheld.

In addition to the wages subject to withholding of New York State personal income tax under this Part, any payment of an annuity made by a payer maintaining an office or transacting business in New York State to an individual, to the extent includible in such individual's New York adjusted gross income, must be treated as if it were a payment of wages by an employer to an employee for a payroll period if, at the time the payment is made, a request that such annuity be subject to withholding of New York State personal income tax under this Part is in effect.

(b) To qualify for withholding of New York State personal income tax under this Part, the annuity payment must be income to the recipient that would be includible in such recipient's New York adjusted gross income. Such annuity payment must also be payable over a period of longer than one year. All requirements contained in Article 5 of this Subchapter with respect to filing New York State employer returns, furnishing information and payment of New York State personal income tax withheld, apply equally to the withholding of New York State personal income tax on annuity payments under this section, except that wherever form IT-2102 is referred to, Statement for Recipients of Annuities, Pensions, Retired Pay, or IRA Payments (form IT-2102P) is to be substituted therefor, and wherever form IT-2104 is referred to, Annuitant's Request for Income Tax Withholding (form IT-2104P) is to be substituted therefor.

(c)Manner of making request.

A request to deduct and withhold New York State personal income tax on annuity payments should be made by the payee by completing form IT-2104P, Annuitant's Request for Income Tax Withholding, in accordance with instructions applicable thereto. In lieu of form IT-2104P, payers may prepare and use a form, the provisions of which are identical to form IT-2104P. The request to deduct and withhold New York State personal income tax is to be made in a specific dollar amount which must be at least $5 per month and may not reduce the net amount of any annuity payment received by the payee below $10.

(d)When request takes effect.

Upon receipt of a request under this section to withhold New York State personal income tax on annuity payments, the payer of such annuity payments must deduct and withhold the amount specified in such request (see subdivision [c] of this section for restrictions relating to the amount of New York State personal income tax which may be deducted and withheld from annuity payments) from such annuity payments commencing with the first annuity payment made on or after the date which occurs:

(1) in a case in which no previous request is in effect, three calendar months after the date on which such request is furnished to such payer; or

(2) in a case in which a previous request is in effect, the first status determination date (January 1st, May 1st, July 1st and October 1st of each year) which occurs at least 30 days after the date on which such request is so furnished. However, the payer may elect to begin to deduct and withhold such specified amount with respect to an annuity payment from an earlier payment.

(e)Duration and termination of request.

A request under this section will remain in effect until terminated by the payee. The payee may terminate the request by furnishing the payer a signed written notice of termination. Such notice of termination, except as hereinafter provided, is effective with respect to the first payment of an annuity made on or after the first status determination date (January 1st, May 1st, July 1st and October 1st of each year) which occurs at least 30 days after the date on which such notice of termination is furnished. However, the payer may elect to terminate withholding of New York State personal income tax with an annuity payment made on or after the date the termination notice is furnished and before the status determination date.

(f)

(1) For requirements relating to payers' returns of New York State personal income tax withheld and payment of such withheld New York State personal income tax, see Part 174 of this Article.

(2) For requirements relating to New York State information statements for payees, see Part 172 of this Article.

(3) For requirements relating to New York State information returns by payers relating to payments of annuities, pensions, retired pay or individual retirement account payments subject to withholding, see Part 174 of this Article.

N.Y. Comp. Codes R. & Regs. Tit. 20 § 171.10