Request Electronic Communications From The Department
The best way to communicate with the Tax Department about your return is to open an Online Services account and request electronic communications for both Bills and Related Notices and Other Notifications. To ensure that you receive future communications in the Message Center of your Online Services Account Summary homepage, create your account now, before filing your next return.
New York Is Casting A Much Bigger Net Fishing For Remote Taxpayers Under The Office Of Convenience Rule
In recent months, New York has started issuing desk audit notices , basically as soon as returns are filed, to taxpayers who have claimed a change of residency or who have reported less income attributable to New York sources than in prior years. New York is issuing desk audit notices, assigning taxpayers case numbers, and requiring a response. Failure to respond promptly with sufficient information will result in an assessment of additional tax along with associated penalties and interest.
Taxpayers receiving these notices related to a reduction in income allocated to New York State will be required to prove that any days allocated outside of New York were for their employers necessity to the Departments satisfaction. The Department will assess additional tax under the Office of Convenience Rule if the taxpayer is unable to substantiate to the Departments satisfaction that the days worked outside New York was not for the individuals convenience. Please note that the Department is taking the position that any day worked from home due to COVID is for the employees convenience and not the employers necessity.
Taxpayers receiving notices related to a claimed residence change will be required to prove to the Departments satisfaction that they:
Definition Of Qualified New York Manufacturer Changes
For tax years beginning on or after January 1, 2018, the definition of a qualified New York manufacturer has been changed to use the New York State adjusted basis rather than the federal adjusted basis when determining whether a manufacturer meets the $1 million or $100 million property thresholds for determining eligibility for the manufacturers tax rate reductions and the real property tax credit. A qualified New York manufacturer is a manufacturer that is principally engaged in the production of goods by manufacturing, processing, assembling, refining, mining, extracting, farming, agriculture, horticulture, floriculture, viticulture, or commercial fishing during the tax year that either has property in New York State of the type described for the investment tax credit that has an adjusted basis for New York State tax purposes of at least $1 million at the end of the tax year, or has all of its real and personal property in New York State. C, I, 10/18/2019.)
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Tax Credit Budget Legislation Enacted In 2019
The New York Department of Taxation and Finance issued technical memorandum TSB-M-19C, I which discusses the individual income and corporate income tax credit budget legislation enacted in 2019. New credits were added to the law, which include the Central Business District Toll credit, Employer-Provided Child Care credit, and the Recovery Tax credit. The Empire State Commercial Production credit and Employee Training Incentive Tax credit provisions were amended. In addition, the Empire State Film Production and Empire State Film Post-Production Tax credit as well as the Workers with Disability Tax credit were extended to 2024 and 2022, respectively.
New York Finalizing $212 Billion Dollar Budget Deal
On April 6, 2021, Governor Andrew Cuomo announced an agreement has been reached on the $212 billion budget for the fiscal 2022 year. Included in the budget is New Yorks own version of a workaround to the federal limitation of the state and local tax deduction. The Tax Cut and Jobs Act imposed a $10,000 limitation on the amount of state and local tax that individuals may deduct for federal income tax. Some states, including New Jersey and Connecticut, responded by enacting various workaround bills in an effort to mitigate the impact of the limitation on their state residents. Similarly, New York is planning to impose an entity level tax that would provide a offset credit to the individuals of the flow-through entity to get around the $10,000 limitation.
A brief overview of some other items included in the budget bill include the following:
- The corporate franchise tax rate would temporarily be raised to 7.25% from 6.5% for three years.
- For tax years beginning on or after January 1, 2021, and prior to January 1, 2024, the business capital tax base is reinstated
- The capital base tax was supposed to be fully phased out beginning January, 1, 2021.
- As part of the phase out, the tax rate for the capital base tax had been reduced each year 0.075% for 2018 0.050% for 2019 0.025% for 2020).
- Going forward, the capital base tax will be imposed at a rate of 0.1875%, and therefore this reinstatement also comes with a rate increase.
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Biden Approval Rating Continues To Plummet: Battered On Trust Leadership Competency In Poll
ALBANY New York will push back its state income tax filing deadline for the second year in a row due to the coronavirus pandemic, bringing it in line with the newly extended federal income tax filing deadline of May 17.
State Division of the Budget Robert Mujica said Friday that the Department of Tax and Finance will follow the federal governments lead.
The US Department of the Treasury and IRS announced the new 30-day extension on Wednesday.
At the Governors direction, the Department of Tax and Finance will be extending the New York State income tax deadline to May 17 to align with the federal decision to do the same. This 30-day extension provides New Yorkers still coping with the complications of the COVID-19 pandemic ample time to file, Mujica said in a statement.
This will shift approximately $6 billion of revenue from April to May and the State will make any necessary adjustments to cash-flow.
The date change will require state officials to find a backup plan for filling the hole in the meantime, a DOB spokesman told The Post, as Gov. Andrew Cuomos office and the state Legislature are in the process of negotiating the final stages of the state budget due April 1.
The state will also be reviewing how the change impacts recipients of unemployment benefits.
New York Auditing Income Tax Returns Of Certain Nonresident Remote Employees
New York tax authorities are focused on auditing 2020 income tax returns filed by nonresidents who work for New York employers. During the course of the Coronavirus Pandemic, the New York Department of Taxation and Finance directed nonresidents whose primary office is in New York to count telecommuting days as time working in the state. More specifically, TSB-M-06I, issued in 2006, provides that in order for any work days to be allocated outside of New York State, such services must be because the employers necessity and not the employees convenience. Applying this rule, unless telecommuting was because of necessity of the employer, employee services rendered remotely were to be considered New York work days. However, there may be legal challenges to that position because taxpayers are arguing telecommuting was a requirement and, in many cases, mandated rather than simply being based upon convenience. Moreover, the U.S. Supreme Court will rule on a similar issue as requested by New Hampshire, which is challenging Massachusetts taxation of residents working remotely.
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Nys Remains Undecided On Unemployment Tax Exemption
It says you giveth, please dont taketh away, Tedisco says in a Zoom call with NEWS10s Mikhaela Singleton.
You had difficulty fighting it, it was delayed, delayed, delayed, you finally got in. Now, pouring salt in the wound and saying, oh by the way after we send you this bridge, were going to tax you and take our money back, Tedisco says. It makes absolutely no sense to tax some of our most vulnerable in the population.
Tax filing services also say the longer the government waits to make a decision, the bigger the headache for them.
We have over 100 tax returns on hold. We havent even printed them, so thats going to be a task in itself is us trying to play catch-up on top of all the other returns we still have coming in, says Steve Miller, president of Millers Financial Solutions.
Both Miller and Sen. Tedisco say theyve taken calls from New Yorkers forced into dire situations by both unemployment and waiting for tax returns.
A lot of people said that, we had to sell our house, and some individuals, believe it or not, said that they took my car away, Tedisco recalls. These are not singular or a few individual stories, theres a lot of stories out there.
Was Your Refund Less Than You Expected
Owing money to any New York state agency can result in your income tax refund being seized. If youre behind on child support or have unpaid restitution or court fees, your state refund taxes can be used to pay those debts.
Your tax refund may be less than you expected because you made an error on your tax return. The Department of Taxation will notify you of the changes made to your return. Review the information provided to ensure you agree with the changes made.
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New Jersey And New York Propose Taxes On Financial Transactions
New York has proposed Assembly Bill 5215 and Senate Bill 3980, which would impose a new tax on the purchase of securities having a New York connection. Security would be broadly defined to include shares of stock, partnership interests, bonds, notes and derivative financial instruments, such as options, futures contracts, etc. Varying tax rates would apply to covered transactions, and a hierarchy would apply to determine who pays the tax . Similarly, New Jersey Assembly Bill 4402 and Senate Bill 2902 would impose a tax on persons or entities that process 10,000 or more financial transactions through electronic infrastructure located in New Jersey during the year. The tax rate would be $0.0025 per financial transaction processed through electronic infrastructure in New Jersey. For specific details, each states respective proposals should be reviewed.
New York State Extends Income Tax Filing Deadline
New York states income tax filing deadline is being moved to July 15 to comply with the federal governments decision to push back the traditional filing date due to the coronavirus outbreak.
Disclaimer: Please note this is the information that is readily available at this time, it is subject to change so please consult your Withum tax advisor.
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Governor Cuomo Signs $212 Billion Dollar New York Budget Bill
On April 19, 2021, Governor Andrew Cuomo signed the $212 billion budget for the fiscal 2022 year. Included are measures for a state level pass-through entity tax as well as tax relief for the middle-class taxpayers. Two new tax brackets have been introduced for New Yorks top income taxpayers. Mobile sports betting and recreational marijuana has also been legalized. A brief overview of some other items included in the budget bill include the following:
New York Releases Details Of Pending Marijuana Law
New York state lawmakers released details of the new law legalizing recreational marijuana, which recently passed the state Senate. The legislation provides licensing requirements for marijuana producers, distributors, and retailers. It creates a social and economic equity program to assist individuals disproportionately impacted by cannabis enforcement that want to participate in the industry. The law provides for a 9% state excise tax and 4% local excise tax rate on the retail sales price of marijuana. Dispensaries may be allowed to open as early as 2022.
Distributors will be required to collect an excise tax based on the potency of the amount of THC, the active ingredient in cannabis. The law plans to tax raw flowers at 0.5 cents per milligram of THC, cannabis concentrate at 0.8 cents per milligram, and edibles at 3 cents per milligram.
The bill establishes the Office of Cannabis Management to put in place a framework that would cover medical, adult-use, and cannabinoid hemp. The tax revenue generated will be used to operate the state cannabis program and related social programs.
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Irs Refund Schedule Chart
Here is a chart of when you can expect your tax refund for when the return was accepted . This is an estimate based on past years trends, but based on early information, does seem accurate for about 90% of taxpayers. Also, as always, you can use the link after the calendar to get your specific refund status.
Now, when to expect my tax refund!
2021 IRS Tax Refund Calendar
If, for some reason, you didnt receive your return in the time specified above, give or take a few days, you can always use the IRSs tool called Get Refund Status. Since the link requires personal information, here is the non-html version: https://sa2.www4.irs.gov/irfof/lang/en/irfofgetstatus.jsp.
Once you enter all your information, it will tell you what is going on with your refund. Remember, if you input the wrong SSN, it could cause an IRS Error Code 9001, and might make your return be held for Identity Verification.
Also, many people are concerned because they received a Reference Code when checking WMR. Here is a complete list of IRS Reference Codes. Just match up the code with the one in the list, and see what the problem could be. As always, if you are concerned, you can .
Looking for an old IRS refund chart? We saved them for you below.
Prior Years’ Tax Refund Calendars
Log In From The Portal Below To Create A Sprintax Account
Access to Sprintax is through your myBinghamton Dashboard . Select Sprintax from the AVAILABLE LINKS list.
Open your new Sprintax account by creating a UserID and password – or, if you created an account with Sprintax in the past, you may use that UserID and password again. .
After you enter all required information into Sprintax, it will generate a cost for the service. At this point, you will type in an access code that ISSS has provided you in email. Refer to an email sent by ISSS on February 19, 2021 for your code. This access code will waive the fee by Sprintax for preparing your federal income tax return. If you have questions about this access code, please for guidance.
Sprintax will save your information so you can log in and out without starting over. Additionally, if you use Sprintax in subsequent years, your information will carry over.
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What About My State Tax Refund
What weve covered so far applies to federal tax refunds. As you might expect, every state does things a little differently when it comes to issuing tax refund.
Generally, you can expect to receive your state tax refund within 30 days if you filed your tax return electronically. If you filed a paper tax return, it may take as many as 12 weeks for your refund to arrive or longer, if your state has been or still is under social distancing restrictions. To find out the status of your refund, youll need to contact your state tax agency or visit your states Department of Revenue website.
Announcement From Nyc Department Of Finance On Deadlines
The NYC Department of Finance wants businesses to comply with the regular filing due date, as a Finance Memorandum was issued stating that the NYC Unincorporated Business Income Tax Returns and Estimated Tax Payments remain due April 15, 2020. However, extensions will still be accepted for those businesses that need more time in light of recent events. In addition, an abatement of penalties will be under the discretion of the NYC Commissioner, who plans to use his authority liberally, but interest remains statutory.
Likewise, the same holds true for the General Corporation Tax due from S-corporations, which were due March 16, 2020, and Business Income taxes due from C-corporations and Banks, which are due April 15, 2020. Returns and estimated income tax voucher payments are due when required by law, with a liberal abatement of penalties, and an accrual of statutory interest. While the Department did not provide for a blanket extension to a specified date , the Department does plan on approving extension requests. Although the Department is complying with the statutory requirements for filing, the Department does want to give taxpayers flexibility, as seeking legislation during this emergency would have been too difficult.
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When Will I Get My Tax Refund
The Wheres My Refund? tool lets you check the status of your refund through the IRS website or the IRS2Go mobile app. If you submit your tax return electronically, you can check the status of your refund within 24 hours. But if you mail your tax return, youll need to wait at least four weeks before you can receive any information about your tax refund. Keep in mind that usually you can file your taxes in January.
In order to find out the status of your tax refund, youll need to provide your Social Security number , filing status and the exact dollar amount of your expected refund. If you accidentally enter the wrong SSN, it could trigger an IRS Error Code 9001. That may require further identity verification and delay your tax refund.
Most taxpayers receive their refunds within 21 days. If you choose to have your refund deposited directly into your account, you may have to wait five days before you can gain access to it. If you request a refund check, you might have to wait a few weeks for it to arrive. The table below will give you an idea of how long youll wait, from the time you file, until you get your refund.
|Federal Tax Refund Schedule|
|Paper File, Check in Mail|
|Time from the day you file until you receive your refund||1-3 weeks||1 month||2 months|
Note that these are just guidelines. Based on how you file, most filers can generally expect to receive a refund within these time frames.
|2021 IRS Refund Schedule|