Corporate Close Up: More to Learn From New York’s Corporate Tax Reform


New York recently added to its Corporate Tax Reform frequently asked questions (FAQs) portion of its website to clarify questions created by the reform. 

The new FAQs deal with combined reporting issues, credit carryforwards and the process for the mandatory first installment rules. 

Under the new budget legislation, calendar year filers and fiscal year filers can be included in a combined report. The FAQs also explain that a group election must be made on the original return of the combined group that is timely filed, including valid extensions. 

New York did not re-enact the carryforward of the minimum tax credit. Any credit that is carried forward from a year before the corporate tax reform may continue under the same rules. Unlimited duration credits may be carried forward until used and limited duration credits can be carried forward until they expire. 

The mandatory first installment is still based on the prior year’s tax, while the second, third and fourth estimated tax payments for tax years beginning on or after Jan 1, 2015, should reflect the anticipated liability for the current tax year under the tax reform rules.

 

By Erica Parra

 

Continue the discussion on Bloomberg BNA’s State Tax Group on LinkedIn: How else has New York's tax reform changed taxation of corporations?

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