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Specifications for submission of state and local government tax exempt bond interest information

The New York State Department of Taxation and Finance is requesting that financial institutions report interest and/or dividends from federally tax exempt securities such as: bonds, mutual funds, money market funds and unit investment trusts.

The specifications for submission of state and local government bond interest information are based upon IRS guidelines contained in Publication 1220 (0912) reflecting Revenue Procedure 2012-30.

General requirements

  • Limit submission to accounts with New York State addresses.

IRS specifications:

  • Use 1099-B format to record earnings from state and local government bonds, mutual funds, money market funds and unit investment trusts. Report the income as if it were Federal taxable income.
  • Use the payment amount #1 to report the interest including accrued interest received at time of sale.
  • Enter the CUSIP number (if one is assigned to the security) in the ‘CUSIP NUMBER' data field, Position 556-568. If there is no CUSIP number, enter spaces in the field.
  • Enter issuer/security name in the ‘DESCRIPTION' field, position 569-607.
  • Enter the percentage of income attributable to New York, Puerto Rico, Guam and Virgin Islands investment starting in Position 627, if you are reporting this information as a separate field in the data file.

Corrections: 

  • To report corrections of a file already transmitted, submit another complete file and indicate that this file is a replacement file when transmitting file.

 

Only confidential information that is transmitted by means of the department's secure file transfer protocol will be accepted. For more information regarding transmittals, please see Tax exempt bond upload instructions.

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