Tax Professional Newsletter (06/21/2019)
Join us in welcoming Commissioner Michael R. Schmidt
The New York State Senate confirmed Michael R. Schmidt as the new commissioner of the Department of Taxation and Finance on June 20, 2019.
“I’m just thrilled to be part of this world-class team,” Commissioner Schmidt said.
See About the commissioner to learn more.
Tips for helping your client
Review updates to the estate tax before you file your client’s return
When you file a client's estate tax return, remember the following updates to the estate tax:
- The Basic Exclusion Amount for New York State estate tax for dates of death on or after January 1, 2019, and before January 1, 2020, is $5,740,000.
- The requirement to add includible gifts in the New York taxable estate has been extended through dates of death before January 1, 2026. For more information, see includible gifts.
- The Tax Law requires a New York qualified terminable interest property (QTIP) election be made directly on a New York return for decedents dying on or after April 1, 2019. For more information, see New York QTIP election.
Do not submit POA forms from another city or state
When you submit a POA form to the Tax Department, remember we do not accept the following documents:
- power of attorney or authorization forms for the IRS (for example, Form 2848 or Form 8821);
- power of attorney forms for other New York State agencies (for example, the Department of Labor’s Form IA 900); or
- the power of attorney or authorization forms for another state's or city’s department of revenue or finance or tax department (for example, New York City Form POA-2).
See Power of attorney and other authorizations for more information.
Assist your clients who need to contest their property tax assessment
If your client was not successful on Grievance Day, they may have other avenues to contest their assessment
- Small Claims Assessment Review (SCAR)—this option is available only to:
- property owners who live in their one-, two-, or three-family dwellings that they use exclusively for residential purposes, or
- owners of vacant land that is not large enough to contain a one-, two-, or three-family dwelling.
SCAR requires a $30 filing fee. You can obtain information regarding SCAR from the New York State Unified Court System.
- Tax certiorari proceeding, commenced in New York State Supreme Court pursuant to Article 7 of the Real Property Tax Law.
Letters your client may receive this month
If your client receives one of the following, review the information below to assist them in responding.
Notification of failure to enroll in Income Verification Program (IVP)
We’re sending a letter (RP-425GC) to Enhanced STAR recipients who did not enroll in the mandatory Income Verification Program (IVP) with their assessor this year. Because the deadline to submit the form to their assessor has already passed, please direct your client to submit the forms, enclosed with the letter, directly to the Tax Department.
Notification of missing retirement contribution information
Your client may receive a Statement of Proposed Audit Changes (SOPAC), if your client:
- is a member of a public employee retirement system (such as the NYS and Local Retirement System), made 414(h) retirement contributions to their retirement plan, but did not report the contributions as an additional modification to their Federal Adjusted Gross Income on their New York State Income Tax return; or
- participates in a New York City Flexible Benefits program (IRC 125), and did not report the amount deducted or deferred from their salary as an addition modification to Federal Adjusted Gross Income.
For more information about these adjustments, see Public employee 414(h) retirement contributions and New York City flexible benefits program (IRC 125).
- If your client agrees with the SOPAC, simply pay using the payment coupon included, or pay online.
- If your client disagrees, respond with any applicable documentation by the date stated on the first page of the bill. Submit the response online, by mail, or by fax.
Notification of unreported federal changes
If the IRS made changes to your client’s federal return that impact their New York State personal income tax return, your client must report those changes to the department within 90 days of the final IRS determination by filing an amended return.
If your client did not file an amended tax return, they may receive a bill.
- If your client agrees with the bill, they can simply pay using the payment coupon included, or pay online using Online Services or Quick Pay. They do not need to file an amended return.
- If your client disagrees with the bill, respond with any applicable documentation by the date on the first page of the bill. Submit the response online, by mail, or by fax. Include the assessment number on each piece of correspondence.
Keep up with tax changes
The Tax Professional Newsletter is a monthly summary of recent changes and new information. To receive updates as we announce them, subscribe to new tax topics as we add them to our Subscription Service. We’ll share links to new resources, and tax tips as they become available
Upcoming due dates
07/20/19: Sales tax return due for monthly filers.
07/31/19: Employer's quarterly MCTMT return due.
07/31/19: Employer's quarterly combined withholding, wage reporting, and unemployment insurance return due.
Stay on top of due dates; bookmark our Tax Calendar.
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Resource center: Tax Professional