N.Y. Comp. Codes R. & Regs. tit. 20 § 266.3

Current through Register Vol. 46, No. 19, May 8, 2024

Section 266.3 - Special accruals

Tax Law, §§ 1327, 1332, § 12(c) of § 1340(c); Codes and Ordinances of the City of Yonkers, §§ 92-86, 92-92, 92-109(c)

(a) Where a taxpayer changes status from that of a resident to a nonresident of the City of Yonkers, such taxpayer must, regardless of the method of accounting normally employed, accrue and include in the computation of net State tax, for purposes of determining the City of Yonkers income tax surcharge for the portion of the year prior to the change of resident status, any items of income, gain, loss or deduction accruing prior to the change of resident status, if not otherwise properly includible or allowable for purposes of computing net State tax for such prior portion of the taxable year or for a prior taxable year. That is, in computing net State tax for purposes of determining the City of Yonkers income tax surcharge for the resident period, such taxpayer must include all the items required to be included if a Federal income tax return were being filed for the same period on the accrual basis, together with any other accruals such as deferred gain on installment obligations which are not otherwise includible or deductible for such prior period or for a prior taxable period.

Note:

If such taxpayer's period of City of Yonkers residence is not the same as such taxpayer's period of New York State residence, net State tax for the portion of the year during which such taxpayer is a City of Yonkers resident must be determined as if such taxpayer's New York State period of residence were the same as such taxpayer's City of Yonkers period of residence. The amount of such net State tax applicable to the period of Yonkers residence must include the special accruals required by this subdivision.

(b) Where a taxpayer changes status from that of a nonresident to a resident of the City of Yonkers, such taxpayer must, regardless of the method of accounting normally employed, accrue, for the portion of the year prior to such change, any items of income, gain, loss or deduction accruing prior to the change of resident status, if not otherwise properly includible or allowable for Federal self-employment tax or Federal income tax purposes for such prior portion of the taxable year or for a prior taxable year. That is, in computing City of Yonkers wages or net earnings from self-employment applicable to the City of Yonkers nonresident period, such taxpayer must include all the items required to be included if a Federal income tax return were being filed for the same period on the accrual basis.

(c) No items of income, gain, loss or deduction accrued under this section for the portion of the taxable year prior to the change of residence are to be taken into account for any subsequent taxable period.

(d) See also sections 154.10 and 154.12 of this Title with regard to special accruals in the case of a change of New York State residence.

(e)Special accruals not required in certain cases.

The City of Yonkers income tax surcharge return for the period prior to a change of status from resident to nonresident may be filed without the special accruals if the taxpayer files with the State Tax Commission a surety bond or other security acceptable to the State Tax Commission (see section 154.11 of this Title), in an amount not less than the amount of additional City of Yonkers income tax surcharge which would be payable if no such surety bond or other security were filed with the State Tax Commission. The filing of such surety bond or other security is conditioned upon the inclusion of amounts accruable in the determination of net State tax for purposes of the City of Yonkers income tax surcharge for one or more subsequent taxable years as if the taxpayer had not changed resident status.

N.Y. Comp. Codes R. & Regs. Tit. 20 § 266.3