TAF-27-09-00009-P Automatic Extension of Time to File Partnership and Fiduciary Returns

7/8/09 N.Y. St. Reg. TAF-27-09-00009-P

NEW YORK STATE REGISTER

VOLUME XXXI, ISSUE 27

July 08, 2009

RULE MAKING ACTIVITIES

DEPARTMENT OF TAXATION AND FINANCE

PROPOSED RULE MAKING

NO HEARING(S) SCHEDULED

 

I.D No. TAF-27-09-00009-P

Automatic Extension of Time to File Partnership and Fiduciary Returns

PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:

Proposed Action:

This is a consensus rule making to amend section 157.2(a) of Title 20 NYCRR.

Statutory authority:

Tax Law, sections 171, subdivision First, 657(a) and 697(a)

Subject:

Automatic extension of time to file partnership and fiduciary returns.

Purpose:

To conform to federal treatment concerning the automatic extension of time to file partnership and fiduciary returns.

Text of proposed rule:

Section 1. Subdivision (a) of section 157.2 of such regulations is amended to read as follows:

(a) The department will grant an automatic [six-month] extension of time to file a New York State income tax return beyond the date prescribed for filing the return upon the proper application by the individual, partnership, or fiduciary required to file the return. The length of time of the automatic extension for a New York State individual income tax return is six months. Except as to electing large partnerships allowed an automatic six-month extension for federal purposes, which shall be allowed an automatic six-month extension for filing their New York State partnership returns, the length of time of the automatic extension for a New York State partnership or fiduciary return is five months. Consistent with section 657 of the Tax Law, the automatic extension may be granted for a different length of time to conform to extensions for comparable federal forms. The application for an automatic extension must be filed on or before the date prescribed for filing the appropriate return.

Section 2. These amendments shall take effect on the date the Notice of Adoption is published in the State Register and apply to New York State income tax returns for taxable years ending on or after December 31, 2009.

Text of proposed rule and any required statements and analyses may be obtained from:

John W. Bartlett, Tax Regulations Specialist 4, Department of Taxation and Finance, Taxpayer Guidance Division, Building 9, W. A. Harriman Campus, Albany, NY 12227, [phone], email: [e-mail]

Data, views or arguments may be submitted to:

Same as above.

Public comment will be received until:

45 days after publication of this notice.

Consensus Rule Making Determination

The Department of Taxation and Finance has considered the proposed amendments to section 157.2(a) of Title 20 NYCRR and has determined that no person is likely to object to the rule as written, because these amendments merely conform the provisions relating to automatic extensions of time to file income tax returns to reflect current federal treatment under the IRC and related regulations.

The amendments conform to federal treatment regarding the period of automatic extensions to file tax returns for partnerships, estates, and trusts by reducing the duration of the automatic extension of time to file for certain pass-through entities (partnerships, estates and trusts) from six months to five months. This shorter extension period for pass-through entities will give taxpayers time to receive information from those entities in order to file their own tax returns in a timely manner. These amendments provide for uniform treatment under New York State and federal law, avoiding the confusion that could result from disparate state and federal filing deadlines.

The following organizations were notified that the Department was considering developing a rule to conform with federal treatment and were given the opportunity to participate in its development: the National Federation of Independent Businesses; the Division for Small Business of Empire State Development; the New York State Association of Counties; the Association of Towns of New York State; the New York Association of Convenience Stores; the Small Business Council of the New York State Business Council; the Retail Council of New York State; the New York State Conference of Mayors and Municipal Officials; the Office of Local Government and Community Services of the New York State Department of State; the Tax Section of the New York State Bar Association; the National Tax Committee for the National Conference of CPA Practitioners (NCCPAP); and the New York State Society of CPAs. The NCCPAP urged the Department to adopt amendments to conform to the federal treatment. No other comments were received.

Job Impact Statement

A Job Impact Statement is not being submitted with this rule because it is evident from the subject matter of the rule that it could have no impact on jobs and employment opportunities.

The primary purpose of these amendments is to conform to a temporary and proposed Federal regulation (26 CFR 1.6081-2T) which reduces the period for an automatic extension of time to file for certain pass-through entities (partnerships, estates, and trusts) from six months to five months. This reduced time period is to allow taxpayers time to receive information from the pass-through entities in order to file their own tax returns in a timely manner.