Corporation tax up-to-date information for 2019 (Articles 9, 9-A, 13, and 33)
The following changes were not reflected on the forms for 2019 when they went to print
If any of the following updates impact a tax form that you are responsible for filing, and you have not yet filed such form, you must incorporate these updates when filing such form.
If you have already filed such form, and one of the following updates affects a calculation previously reported, you must file an amended form reflecting such update.
Select a tax form from the following list to identify the changes affecting that form. If a form is not listed, there have been no changes affecting that form.
CT-3-S-I
CT-3-A/BC-I
CT-34-SH-I
CT-225-I
CT-225-A-I
On page 13, 2nd column, under the heading Section 210-A.5-a - Global intangible low-taxed income, the line 44 instructions are changed to read:
Line 44 - If a GILTI inclusion amount under IRC § 951A is computed at the entity level and is reported in Part 1, enter 100% of GILTI in the Everywhere column. Do not include GILTI in the New York column.
If a GILTI inclusion amount is not computed at the entity level and is not reported in Part 1, do not include GILTI in the New York column or the Everywhere column.
On page 1, under the heading Line instructions, Part 2, section 1, lines 1 and 2, 3rd sentence, the reference to line 54 should read as a reference to line 55.
See Impact of Changes to the Internal Revenue Code (IRC) on the 2019 New York State Corporation Tax Returns for additional guidance regarding this form correction.
On page 1, under the heading Filing requirements, the following instructions are added immediately above the Note:
If the S corporation is a partner in a partnership(s) and the distributive share of ordinary business income (loss) from that partnership(s), which is included in the S corporation’s ordinary business income (loss), takes into account changes made to the Internal Revenue Code (IRC) after March 1, 2020, the S corporation must issue to each shareholder a statement providing the total amount by which the shareholder must adjust his or her share of the S corporation’s ordinary business income (loss) to account for the Article 22 decoupling (see Part WWW of Chapter 58 of the Laws of 2020) for that partnership(s). Generally, the amount to provide to the shareholders is computed as follows:
Subtract the amount(s) reported in box 1 of the federal Schedule K-1(s) issued to the S corporation by the partnership(s), (as that amount reflects changes to the IRC after March 1, 2020) from the amount reported to the S corporation by the same partnership(s) on Form IT-204-CP, New York Corporate Partner’s Schedule K-1, line 44 (ordinary business income [loss]), (as that amount would have been computed prior to any changes made to the IRC after March 1, 2020). Provide to each shareholder his or her pro rata share of this difference.
See Impact of Changes to the Internal Revenue Code (IRC) on the 2019 New York State Corporation Tax Returns for additional guidance regarding this form correction.
On page 4, 2nd column, immediately below A-510, add a new addition modification code A-511 to read:
A-511 Amount of increase in interest deduction allowed pursuant to IRC section 163(j)(10)(A)(i) (CT-3 filers only) – Enter the increase in interest deduction included in the computation of your FTI attributable to the use of 50% of adjusted taxable income rather than 30%.
On page 9, in the Addition modifications table, modification number A-901, Beneficiary’s share of fiduciary adjustment, in the CT-33 column, the X is removed and placed in the CT-34-SH column.
On page 10, in the Subtraction modifications table, modification number S-605, in the Description column, IRC section 956(a) inclusion amount should read IRC section 965(a) inclusion amount.
See Impact of Changes to the Internal Revenue Code (IRC) on the 2019 New York State Corporation Tax Returns for additional guidance regarding this form correction.
On page 4, 1st column, immediately below the A-510 Note, add a new addition modification code A-511 to read:
A-511 Amount of increase in interest deduction allowed pursuant to IRC section 163(j)(10)(A)(i) (CT-3-A filers only) – Enter the increase in interest deduction included in the computation of your FTI attributable to the use of 50% of adjusted taxable income rather than 30%.
Note: For this addition modification, do not report any amounts in columns A through D. In column E, report the total amount only for all members of the combined group as combined group members do not individually report this modification for this year.
