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Department of Taxation and Finance

NYS Tax Department: Tax Professional Newsletter 2/28/20

Avoid delaying your client’s refund

Before you file your client’s return, make sure their records are in order and that you have acceptable proof of their eligibility for any income, credits, and deductions being claimed. We may need you to provide us with additional information after you file to support amounts claimed.

Review our checklists for acceptable proof to make sure you're claiming only what your client can prove they are entitled to.

Reviewing your client’s tax account balance

Before you file your client’s return, be sure to review their tax account to ensure you are reporting the correct amount of payments on their return. If your records disagree with the estimated tax amounts shown, complete and submit Form IT-2105.1, Reconciliation of Estimated Tax Account for Individuals, by April 1.

With a signed E-ZRep Form TR-2000, Tax Information Access and Transaction Authorization, you can view your client’s tax account balance from your Tax Professional account, including:

  • estimated tax payments,
  • amounts carried forward from a prior tax year, and
  • extension payments, if any.

For more information, visit Review your tax account balance before you file.

Report property tax credits on 2019 income tax returns

Your clients who itemize their deductions on their 2019 New York State income tax returns, or who are residents of Yonkers, may be required to report property tax relief credits and STAR credits received in 2019.

To learn more, visit How to report your property tax credits. Use our Property Tax Credit Lookup to verify that your client received a check for 2019.

Nursing home assessment credit

Are any of your clients claiming the nursing home assessment credit when filing their personal income taxes? If so, make sure you are calculating it properly.

New Special Condition Code C2

New for Tax Year 2019, taxpayers who are unable to pay their tax due in full by April 15, 2020, and would like to request an Installment Payment Agreement (IPA) may enter Special Condition Code C2 on Form IT-201, Full-Year Resident Income Tax Return, Item G, and IT-203, Nonresident and Part-Year Resident Income Tax Return, Item F. This Special Condition Code will also be available through tax preparation software.

The Special Condition Code does not automatically create an IPA. The Special Condition Code C2 will allow a taxpayer to more quickly receive a bill for the unpaid tax due. After receiving the bill, the taxpayer may request an IPA using Online Services, through our phone system, or by speaking with a representative.

Please note: Any tax return payments scheduled by the taxpayer will be withdrawn as scheduled unless canceled by the taxpayer.

Paper carryout bag reduction fee

Your clients who own retail businesses should be aware that beginning March 1, 2020, the New York State Bag Waste Reduction Act authorizes counties and cities to impose a five-cent paper carryout bag reduction fee on paper carryout bags that sales tax vendors provide to customers.

Sales tax vendors that sell tangible personal property in a locality where the fee is imposed must collect the fee when they provide a paper carryout bag to a customer. Localities imposing the fee beginning March 1, 2020, are Suffolk County, Tompkins County, and New York City.

For more information about the fee and how to remit it, visit Paper carryout bag reduction fee.

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.

Recently added topics include:

  • Cigarette, tobacco, and vapor products taxes
  • Medical marijuana and opioid excise taxes
  • Real estate transfer tax and mortgage recording tax

Upcoming due dates

3/16/20:

  • New York S corporation tax return for calendar year filers
  • Mandatory first installment (MFI) of estimated tax for New York S corporations with return or extension for calendar year filers
  • Mandatory first installment (MFI) of estimated tax for New York C corporations with form CT-300 for calendar year filers
  • Partnership, limited liability company, and limited liability partnership filing fee for calendar year filers
  • Partnership tax return for calendar year filers

3/20/20:

  • Sales tax return for quarterly filers
  • Sales tax return for monthly filers
  • Sales tax return for annual filers

Stay on top of due dates; bookmark our Tax Calendar.

Visit View demos and videos to watch our demos and to learn more about our online services.

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