Tax Professional Newsletter 07/02/20
Tax Department response to novel coronavirus
The Tax Department continues to respond to the COVID-19 pandemic, listening to taxpayers—and taking steps to help. Noteworthy actions and reminders for this month are below.
- Remember the upcoming July 15 due date for individual, fiduciary, and corporate tax returns and payments, which could impact your clients. See N-20-2, Announcement Regarding Relief from Certain Filing and Payment Deadlines due to the Novel Coronavirus, COVID-19.
- Real Property: Property tax payment extensions have been granted in a number of jurisdictions. Contact your local officials to see if the deadline has been extended in your jurisdiction. Related Executive Orders: 202.22; 202.32; 202.36; 202.43; 202.44; 202.45.
For the latest tax-related updates, visit Tax Department response to novel coronavirus (COVID-19).
Formally protest a department notice
If your client receives a notice from the Tax Department stating that they have formal protest rights, they can protest the notice in either of the following ways:
- file a request for a conciliation conference, through the Bureau of Conciliation and Mediation Services (BCMS) or
- file a petition for a Tax Appeals hearing.
If your client requests a conciliation conference, they can now choose to have their conference held by telephone on the Request for Conciliation Conference (Form CMS-1). If your client previously selected an in-person conference but would now prefer it to be held by telephone, they can make that request by emailing BCMS at: tax.sm.BCMS@tax.ny.gov.
Unemployment insurance benefits are taxable
Unemployment benefits are subject to federal, New York State, New York City, and Yonkers income taxes. Your clients can have federal and state tax withheld from their unemployment insurance benefits so they do not owe taxes at the end of the year. For more information, visit the New York State Department of Labor website.
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, and the federal change results in additional tax due, 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.
Respond to a Statement of Proposed Audit Change
If your client claimed certain credits, 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.
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 about 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.
Respond to a STAR letter
Your client may receive a letter requesting additional information or notifying them of a change to their STAR benefit or to the STAR program.
Visit the STAR resource center to see a list of the letters your client might receive and instructions on how to proceed if they do receive a letter.
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
- Alcoholic beverages tax and beverage container deposits
Upcoming due dates
Personal income tax and corporation tax returns for tax year 2019 due on April 15, 2020, and related payments of tax or installments of tax, including installments of estimated taxes for the 2020 tax year.
Sales tax return for monthly filers
- Employer's quarterly MCTMT return
- Employer's quarterly combined withholding, wage reporting, and unemployment insurance return