Sec. 2-1.1. General

Tax Law, §§ 208(10), 209(1)

(a) Generally, for Federal income tax purposes, a taxpayer's taxable year is the same as its accounting period. In most cases, the taxable year for which the franchise tax imposed by article 9-A of the Tax Law is to be computed and for which a franchise tax report is to be filed shall be the same as the taxpayer's taxable year for Federal income tax purposes, or that portion of the Federal taxable year for which the taxpayer is subject to the tax imposed by article 9-A of the Tax Law. (See section 1-2.5 of this Title—Definition of taxable year.) The taxable year under article 9-A of the Tax Law will, generally, be the accounting period covered by the taxpayer's Federal income tax return whether such period be a calendar year, a properly established fiscal year (which includes an accounting period consisting of 52 or 53 weeks) or an accounting period of less than 12 months as permitted or required under the Internal Revenue Code. If a taxpayer does not have a taxable year for Federal income tax purposes, the tax must be computed and a report must be filed for a calendar year, unless the Commissioner of Taxation and Finance authorizes the use of some different accounting period.

(b) The tax imposed by article 9-A of the Tax Law is imposed for each fiscal or calendar year of the taxpayer, or any part thereof, during which the taxpayer has a corporate franchise granted by New York State or does business, employs capital, owns or leases property in a corporate or organized capacity or maintains an office in New York State. Therefore, for purposes of article 9-A of the Tax Law, the taxpayer's first taxable year begins in the case of a domestic corporation on the date of its incorporation or, if elected, on such other date for the beginning of its corporate existence as set forth in the certificate of incorporation, not to exceed 90 days after the filing of such certificate, and ends on the last day of such fiscal or calendar year or on the last day it is subject to the tax imposed by article 9-A of the Tax Law, whichever comes first. In the case of a foreign corporation, the taxpayer's first taxable year begins on the date it begins to do business, employ capital, own or lease property or maintain an office in New York State and ends on the last day of such fiscal or calendar year or on the last day it is subject to the tax imposed by article 9-A of the Tax Law, whichever comes first. (See Part 6 of this Title—Reports.)