Changes that impact New York S corporations with global intangible low-taxed income (GILTI)

The Internal Revenue Service issued IRS Notice 2020-69. This guidance impacts New York S corporations with GILTI for the 2020 tax year.

A federal S corporation (and its shareholders, if applicable) that elects to be treated as an entity under IRS Notice 2020-69 must report their amount of GILTI at the federal corporation income tax level.

For New York State tax purposes, affected New York S corporations must include GILTI in their apportionment factor on line 54 in Part 3 of Form CT-3-S for the 2020 tax year.

If an affected S corporation has already filed a 2020 return, the S corporation should file an amended return if this update results in a change to the refund or tax due.