Tax Professional Newsletter (09/27/2019)
Change or amend a filed return
If you need to amend your client’s New York State income tax return using Form IT-201-X or Form IT-203-X, remember these tips:
- Include all forms that support the information in your client’s amended return (even if already submitted with their original return).
- You can e-file your client’s amended return for the current year or the past two years (2016-2018).
- If the IRS makes final changes to your client’s federal return, review their New York State return to determine whether you need to amend to account for the federal changes. (If you do, file your client’s amended return within 90 days.)
- If your client is due an additional refund, they can track the status of their amended refund using Check your refund (for years 2015-2018).
Register as a vapor products retail dealer
Effective December 1, 2019, a new 20% supplemental sales tax will apply to retail sales of vapor products in New York. If your client sells or plans to sell vapor products on or after that date, they must register online with the Tax Department before selling those products.
Our application to register as a vapor products dealer will be available in October 2019 through your client's Online Services for businesses account. To receive email updates, subscribe to our Cigarette, tobacco, and vapor products taxes email list. Visit Vapor products for more information.
Register for the Employer Compensation Expense Program
The Employer Compensation Expense Program (ECEP) established an optional tax that employers can elect to pay if they have employees that earn over $40,000 annually in wages and compensation in New York State.
Respond to a Statement of Proposed Audit Change
If your client took certain itemized deductions or subtractions and information available to the Tax Department indicates that they may not qualify, your client will receive a Statement of Proposed Audit Change or a similar document.
If your client agrees with the bill, there’s no need to file an amended return on their behalf. Simply use the payment coupon included or pay online. If your client disagrees, respond with any applicable documentation by the date indicated on the first page of the bill.
Certain deductions may result in your client receiving a Statement of Proposed Audit Change.
- College tuition credit
Your client took the college tuition credit or itemized deduction and their scholarships or grants listed in Box 5 of IRS Form 1098-T are greater than the amount listed in Box 1, Payments received for qualified tuition and related expenses.
- NY 529 college savings program
The subtraction modification for the NY 529 college savings program is only allowed for contributions made by the account owner, in that year, to the account owner's own account with limited exceptions. See NY 529 college savings program for more information.
- Pension and annuity income subtraction
Not all pension and annuity income qualifies for the income subtraction. See Information for retired persons to learn more about which forms of pension and annuity income are not taxable in New York State.
Property tax credits
We are currently issuing 2019 School Tax Relief (STAR) credits and property tax relief credits statewide. If your clients have questions, direct them to STAR credit or Property tax relief credit. They can also contact us by phone.
- STAR credit: 518-457-2036
- Property tax relief credit: 518-453-8146.
See How to report your property tax credits for where to include your tax filings.
Enhanced STAR property tax exemption
If your client realizes that they missed the deadline to apply for the Enhanced STAR exemption after receiving their school tax bill, direct them to Late Enhanced STAR applications due to good cause.
They have until the deadline to pay their school taxes to request that we grant the Enhanced STAR exemption.
2020 tax preparer education
he 2020 tax preparer registration application and continuing education will be available mid-November. If you are a registered tax preparer, we will notify you when they become available. To determine if you need to register, see Tax preparer registration.
Keep up with tax changes
The Tax Professional Newsletter is a monthly summary of recent changes, new information, and reminders. To receive updates about specific taxes or topics as we announce them, subscribe to more Subscription Topics. We’ll share links to new resources and provide tax tips as they become available.
Upcoming due dates
09/30/19: Fiduciary returns for calendar year taxpayers who requested an automatic 5 and 1/2 month extension to file
- New York C corporation tax return for calendar year filers who requested six month extension to file
- Personal income tax returns for calendar year taxpayers who requested an automatic six month extension to file
10/21/2019: Sales tax return for monthly filers
Stay on top of due dates; bookmark our tax calendar.
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