N.Y. Comp. Codes R. & Regs. tit. 20 § 261.10

Current through Register Vol. 46, No. 51, December 18, 2024

Section 261.10 - Accounting methods

Tax Law, § 5(c) of § 1340(c); Codes and Ordinances of the City of Yonkers, § 92-102(c)

(a)General.

A nonresident taxpayer's method of accounting for purposes of the City of Yonkers earnings tax must be the same as such taxpayer's method of accounting for Federal income tax purposes.

(b) Absences of Federal method of accounting.

(1) In the event a nonresident taxpayer does not have a Federal method of accounting, such taxpayer must compute City of Yonkers earnings on the accounting basis regularly used in keeping such taxpayer's books. If such method does not clearly reflect such taxpayer's earnings, the computation of City of Yonkers earnings shall be made in a manner which, in the opinion of the State Tax Commission, clearly reflects such taxpayer's earnings.

(2) A method of accounting which consistently applies generally accepted accounting principles in a particular trade or business, in accordance with recognized conditions or practices, will ordinarily be regarded as clearly reflecting earnings, provided all items of income, gain, loss and deduction are treated consistently from year to year.

(3) A nonresident taxpayer may compute City of Yonkers earnings under any method of accounting which is permissible for Federal income tax purposes, e.g., cash, accrual, installment or long-term contract basis, or any combination thereof which clearly reflects earnings.

N.Y. Comp. Codes R. & Regs. Tit. 20 § 261.10