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Department of Taxation and Finance

2004 Rule Reviews

Pursuant to Chapter 262 of the Laws of 1996, the State Administrative Procedure Act (SAPA) was amended to add section 207 under which the Department of Taxation and Finance must review all regulations adopted on or after January 1, 1997, after five years, and, thereafter, at five year intervals. In 2004, the Department must review regulations that were adopted during 1999 to determine whether these regulations should be retained as written or modified. Accordingly, the Department intends to review the following regulations during 2004, and invites written comments on the continuation or modification of these regulations in order to assist the Department in the required review. We will consider comments that are received by February 23, 2004. Any questions concerning the items listed in this rule review or comments regarding the continuation of the rules being reviewed should be referred to: Office of Counsel, Department of Taxation and Finance, W.A. Harriman Campus, Building 9, Room 200, Albany, New York 12227. Telephone: (518) 530-4153, Email address: tax.regulations@tax.ny.gov.

Agenda items

20 NYCRR Sections 527.8(j) (Employee meals) and 527.9(g) (Employee lodging)

20 NYCRR Sections 527.8(j) (Employee meals) and 527.9(g) (Employee lodging) Filed March 31, 1999; published/effective April 21, 1999. Need: This regulation was amended to delete burdensome and complex requirements that were no longer applicable. The amendments retained only the provisions that meals and lodging furnished by certain employers to employees are not subject to sales tax if the employers receive no cash (or other consideration) from the employees and the values of the meals and lodging are not included as income for the employees for income tax purposes. Legal Basis: Tax Law sections 171, subd. First; 1142(1); and 1250 (not subdivided). (TAF-06-99-00018-A)

20 NYCRR Parts 6 and 21 (Conforming the Due Dates Short Period Reports)

20 NYCRR Parts 6 and 21 (Conforming the Due Dates Short Period Reports) Filed June 15, 1999; published/effective June 30, 1999. Need: This regulation extended favorable treatment to taxpayers by conforming the due dates of certain general business and banking corporations' short period reports to those required for Federal income tax purposes. Specifically, the amendments conformed the due dates of short period reports required in cases where a taxpayer became part of or ceased to be part of a Federal consolidated group or changed from one Federal consolidated group to another. In addition, the amendments conformed the due date of a short period report required in the case of a taxpayer which was a target corporation for which an election had been made under section 338(h)(10) of the Internal Revenue Code. Legal Basis: Tax Law, sections 171, subd. First; 211.1; 1096(a); and 1462(a). (TAF-16-99-00002-A)

20 NYCRR Part 5005 (Compromises under Subdivision Fifteenth of Section 171 of the Tax Law)

20 NYCRR Part 5005 (Compromises under Subdivision Fifteenth of Section 171 of the Tax Law) Filed June 15, 1999; published/effective June 30, 1999. Need: This regulation codified the Department's policy in relation to offers in compromise of fixed and finally determined tax liabilities; and provided written guidance to taxpayers with respect to the grounds for an offer, the procedure for review and acceptance or rejection of an offer, and the criteria for rejection of an offer. Legal Basis: Tax Law, sections 171, subdivisions First, Fifteenth. (TAF-17-99-00005-A)

20 NYCRR Part 2392 (Reasonable Cause - Abatement of Penalties)

20 NYCRR Part 2392 (Reasonable Cause - Abatement of Penalties) Filed July 26, 1999; published/effective August 11, 1999. Need: This regulation consolidated existing regulations regarding reasonable cause into one new Part 2392. This amendment applied to various penalties imposed by the Tax Law which allow for abatement upon a showing of reasonable cause and an absence of willful neglect. The consolidation provided a single source for taxpayers who file under multiple tax articles to obtain information regarding reasonable cause. In addition, the regulation outlined when a taxpayer's reliance on professional advice constitutes reasonable cause; and for purposes of the delinquency penalties also allowed an honest misunderstanding of fact or law or reasonable reliance on written advice, professional advice or other facts to be applicable, under certain circumstances, in establishing reasonable cause. Legal Basis: Tax Law, sections 171, subd. First; 171-a(8); 207-b; 219-a; 289-b(1)(c); 295 (not subdivided); 315; 433(1)(c); 436 (not subdivided); 475 (not subdivided); 481(1)(a)(iii); 509(7); 512(1)(c); 528(a); 697(a); 990(a); 1007(b); 1080(a); 1096(a); 1142(1) and (8); 1145(a)(1)(iii) and (a)(6); 1165 (not subdivided); 1250 (not subdivided); 1312(a); 1332(a); 1342 (not subdivided); 1415(a); 1468 (not subdivided); 1519 (not subdivided); and 1556 (not subdivided); and General City Law, section 25-n(e). (TAF-22-99-00002-A)

20 NYCRR Part 525 (Sales and Use Tax Regulations - General)

20 NYCRR Part 525 (Sales and Use Tax Regulations - General) Filed July 26, 1999; published/effective August 11, 1999. Need: This regulation updated and simplified the "general" provisions in Part 525 by deleting text that merely repeated the statute or that was superfluous, unnecessarily complex, or no longer applicable. Legal Basis: Tax Law sections 171, subd. First; 1142(1) and (8); and 1250 (not subdivided). (TAF-22-99-00001-A)

20 NYCRR Part 4 (Allocation)

20 NYCRR Part 4 (Allocation) Filed July 26, 1999; published/effective August 11, 1999. Need: This regulation amended Part 4 of the Article 9-A regulations, which deals with allocation, to repeal obsolete language and references contained in various sections of this Part, to make changes necessitated by legislative amendments and to make technical and clarifying amendments. Legal Basis: Tax Law, sections 171, subd. First; 210; 210(3)(a), (1), (2),(2)(B), (6), (7)(A), (8); 210(8) ;1096(a). (TAF-22-99-00004-A)

20 NYCRR Section 112.3(c)(2)(iv)("a") (Amendments to Pension Exclusion for Beneficiaries)

20 NYCRR Section 112.3(c)(2)(iv)("a") (Amendments to Pension Exclusion for Beneficiaries) Filed August 31, 1999; published / effective September 15, 1999. Need: This regulation extended the personal income tax pension and annuity exclusion to payments received by a beneficiary of a deceased pensioner on or after the date the decedent would have reached 59 1/2 years of age. Legal basis: Tax Law, sections 171, subd. First; 612(c)(3-a) and 697(a). (TAF-28-99-00014-A)

Updated: