Federal Conformity
Tax Return Due Date Changes
Part Q of Chapter 60 of the Laws of 2016 amends certain New York State tax filing deadlines to conform to changes made to federal filing deadlines enacted in Section 2006 of H.R. 3236, Public Law 114-41, the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015.
• Partnerships generally must file tax returns (Form IT-204 and attachments) on or before the 15th day of the third month following the close of each taxable year, which is March 15 for calendar-year filers. This change applies to partnership returns for tax years beginning on or after January 1, 2016.
• Partnerships, limited liability companies, and limited liability partnerships must remit the annual filing fee (on Form IT-204-LL) on or before the 15th day of the third month following the close of their taxable year. This change is effective immediately.
• New York C Corporations generally must file returns on or before the 15th day of the fourth month following the close of each taxable year, which is April 15 for calendar-year filers.
This change applies to returns for tax years beginning on or after January 1, 2016 for the following:
• Article 9, Section 184, Additional Franchise Tax on Transportation and Transmission Corporations and Associations;
• Article 9, Section 184-a, Additional Metropolitan Transportation Business Tax Surcharge on Transportation and Transmission Corporations and Associations Services;
• Article 9, Section 186-A, Tax on Furnishing Utility Services;
• Article 9, Section 186-e, Excise Tax on Telecommunications Services;
• Article 9, Section 186-c, Metropolitan Transportation Business Tax Surcharge on Utility Services and Excise Tax on Sale of Telecommunications Services;
• Article 9-A, Franchise Tax on Business Corporations and Metropolitan Transportation Business Tax Surcharge on General Business Corporations; and
• Article 33, Franchise Tax on Insurance Corporations and Metropolitan Transportation Business Tax Surcharge on Insurance Corporations.
For the Article 9 taxes that are prepaid, this change applies to returns for tax years beginning on or after January 1, 2017 for the following:
• Section 183, Franchise Tax on Transportation and Transmission Corporations and Associations;
• Section 183-a, Metropolitan Transportation Business Tax Surcharge on Transportation and Transmission Corporations and Associations; and Section 185, Franchise Tax on Farmers’, Fruit Growers’, and Other Like Agricultural Corporations Organized and Operated on a Co-operative Basis.
Although the return deadline has been moved back to April 15 for C corporations, these entities are still required to remit the mandatory first installment (MFI) of estimated tax on or before the 15th day of the third month following the close of each taxable year, which is March 15 for calendar year filers. However, the amount of the MFI will now be a percentage of the tax from two tax years prior, instead of the preceding year’s tax. The changes to the MFI computation apply to payments due on or after March 15, 2017 for Article 9, Article 9-A, and Article 33.
Similar conforming changes were made to the filing deadlines for New York City for C Corporations and unincorporated businesses, including sole proprietorships reporting on a federal Schedule C that are subject to New York City’s Unincorporated Business Tax.
New York S corporations will continue to file returns on or before the 15thday of the third month following the close of the taxable year.
As the return deadline did not change for New York S corporations, there are no changes to the MFI computation for these entities. S corporations will continue to remit the MFI payment with the filing of a return or extension and it will continue to be based upon the tax shown on the return or request for extension for the preceding year.
(Sections 183-a.5, 186-a.4, 186-e.6, 192.1, 192.2, 197-b.1(a), 197-b.6, 209.1(a), 211.1, 213-b(a), 213-b(d), 658(c)(1), 658(c)(3)(A), 1085(c)(1), 1087(i), 1514(a), 1514(d)-(f), 1515(a) of the Tax Law)
State Conformity with Federal Aviation Administration
Part Z of Chapter 60 of the Laws of 2016 ensures compliance with federal law governing the use of monies collected from taxes on aviation fuel by amending the State Finance Law and Tax Law. These amendments segregate and dedicate the petroleum business tax revenues from the sale of aviation fuels into a new aviation purpose account to fund airport improvement projects. Also to ensure compliance, the legislation exempts fuel used in commercial and general aviation aircraft from local sales tax and the prepaid sales tax on motor fuels.
The petroleum business tax revenue changes take effect on April 1, 2017 and the sales tax exemptions take effect December 1, 2017.
(Sections 89-b(2) and 89-b(4-a) of the State Finance Law; Sections 312, 1102(a)(1), 1210(a)(1), and 1210(a)(xii-xiii) of the Tax Law)