Corporate Tax Law

ICYMI | First have a look at the tax rules of the New York State Funds Act 2021/2022

August 7, 2021
Jason Wilson

On April 7, 2021, the New York State Assembly passed the Comprehensive New York State 2021/2022 Budget Act, which Governor Andrew Cuomo put into effect on April 19, 2021. The Budget Act contains several important tax measures that CPAs should be aware of; This article provides a general summary of the key provisions.

Income tax

With effect from the 2021 tax year, the Budget Act will add three new tax brackets for “high-income taxpayers”. These new tax brackets apply to individual taxpayers with taxable income greater than $ 1.1 million and to joint taxpayers who report more than $ 2.2 million (from 8.82% to 9.65%), plus additional tax brackets for those reporting more than $ 5 million (10.3%). and more than $ 25 million (11.90%). These replace the current top tax brackets of 8.82%. This provision also lowers the tax rates for middle-income taxpayers (Part A, Sections 1, 2, 3).

Taxpayers who have forced some or all of their employees to work remotely due to the state emergency caused by the coronavirus (COVID-19) outbreak can refer to that remote work as being done at the location where the work was done before to declare a state of emergency for tax breaks based on maintaining a presence in the state or in certain areas of the state. This will prevent taxpayers from losing certain tax benefits because they may be doing some acts outside of the required jurisdiction.

This provision comes into force immediately and is deemed to be fully in force and effective from March 7, 2020; it lasts until the end of the state disaster control (Part NN, Section 1),

New York City Adjusted Gross Income (NYAGI) is determined without the exclusion, deduction, or crediting of the amount of federal gross income excluded for the tax year attributable to an investment in a qualifying opportunity fund under IRC Section 1400z-2 (a.) (1) (A) (Part DDD, Section 3, which adds Section 612 (b) (42) of the Taxes Act and Section 11-1712 (b) (39) of the NYC Administrative Act).

NYAGI is determined without excluding, deducting, or offsetting the amount of excluded federal income for the tax year for an investment in a Fund with Qualifying Opportunities under IRC Section 1400z-2 (a) (1) (A). (Part DDD, Section 3, which adds Section 612 (c) (43) of the Taxes Act and Section 11-1712 (c) (38) of the NYC Administrative Code).

With immediate effect and for taxable years beginning on or after January 1, 2020, each lump sum death benefit, insofar as it is included in the federal AGI, will be in a lump sum according to that of the Metropolitan. Established COVID-19 Family Death Benefit Program Paid To Taxpayer Transportation Authority In 2020 May Be Excluded From NYS AGI; this deduction may not exceed $ 500,000 and does not apply to benefits payable under any such program other than a death benefit (Part RR, Addition of Section 612 (c) (44) of the Taxes Act).

Exemption from certain underpayments from accumulating interest

For an important reason, the agent can waive the default interest under Article 22 for the 2020 tax year, which is solely due to an inadequate tax deduction on unemployment benefit (Part OOO, Section 1), with immediate effect.

Resident Tax Credit

Pass-through corporate taxes

A New York resident may have an offset against otherwise due tax that is substantially similar to the transit tax imposed by New York on the income of a partnership or S company for corporations whose partner, partner or shareholder is the resident in the tax year by any other state, a political subdivision of such state, or the District of Columbia on income both derived therefrom and subject to taxation (Part C, Section 1, Addition of Taxes Act Article 24-A, Section 620 (b) ( 1)).

The credit is equal to the product of:

  • the profit share of the taxpayer in the electing partnership or proportional share in the electing S company;
  • 92%; and
  • the transit tax paid by the electing partnership or sub-company to such other state, political sub-entity, or the District of Columbia (Part C, Section 1, addition of Article 24-A, Section 620 (b) of the Taxes Act) (2)).

Offsetting against taxes paid is only granted if:

  • the state, the political division of such state, or the District of Columbia which collects such tax also collects an income tax "substantially similar" to New York pass-through corporate tax; and
  • in the case of taxes paid by an S company, that S company was treated as a New York S company (Part C, Section 1, Adding Article 24-A of the Taxes Act, Section 620 (b) (3 )).
limitations

This credit may not exceed the percentage of tax otherwise payable determined by dividing the portion of the taxpayer's New York income that is subject to taxation by that other jurisdiction by the total amount of the taxpayer's New York income (Part C, Section 1, plus Tax Act Article 24-A, Section 620 (c) (1)).

The credit will not otherwise mitigate the tax on any lesser amount that would have been owed had the income subject to taxation by that alternate jurisdiction been excluded from the taxpayer's New York income (Part C, Section 1, Adding the Tax Law Article 24-A, Section 620 (c) (2)).

When a taxpayer uses the foreign tax credit for federal income tax purposes, the provincial Canadian income tax credit is granted for the portion of the state tax that is not claimed for federal purposes for the tax year or a previous tax year – provided that the state tax is for a subsequent tax year Is asserted for federal purposes, the credit will be credited again in this following tax year. Provincial tax is deemed to be last claimed for federal income tax purposes and for the purposes of this subsection (Part C, Section 1, which adds Article 24-A, Section 620 (c) (3) of the Tax Act).

For pass-through corporate tax purposes, New York income is defined as follows:

  • NYAGI a person or
  • The income of an estate or trust determined as if it were an individual calculating their NYAGI in accordance with Section 612 (Part C, Section 1, adding Article 24-A, Section 620 (d) of the Taxes Act) .

Corporate taxes

New York State Business Corporation franchise tax

Effective for tax years beginning on or after January 1, 2021, the business tax concession is 7.25% for any taxpayer with an operating income base greater than $ 5 million (Part HHH, Section 1, Amending Taxes, Section 9 -A). 210 (a) (1)).

With effect for tax years beginning on or after January 1, 2021 and before January 1, 2024, the tax on the working capital base is 18.75% (Part HHH, Section 2 amending the Tax Act Article 9-A, Section 210 (b) (1) (i)).

For a cooperative housing association, 0.04% of the working capital base applies for tax years beginning on or after January 1, 2020, and 0% for tax years beginning on or after January 1, 2021 and before January 1, 2024 ( Part HHH, Section 2 amending Tax Act Article 9-A, Section 210 (b) (1) (i)).

The definition of total net income does not include gain from investing in a Qualifying Opportunity Fund under IRC Section 1400z-2 (a) (1) (A) (Part DDD, Section 1 adds Article 9-A, Section 208.9 (a) ( 21) and Tax Act Article 33, Section 1503 (b) (1) (W)). All net income, excluding the exclusion, deduction, or crediting of any income excluded from federal gross income for the tax year due to an investment in a qualifying opportunity fund under IRC Section 1400z-2 (a) (1) (A) (Part DDD, Section 2 , which adds Article 9-A, Section 208.9 (b) (27) and Tax Act Article 33, Section 1503 (b) (2) (Z)).

Under the New York City Business Corporation Tax and the General Corporation Tax, total net income is defined in the same way as the New York State Business Corporation Franchise Tax. (Part DDD, Section 9, which adds Section 652.8 (a) (16) of the NYC Administrative Act and Section 11-652 (b) (23))

Credit for tax relief for real estate

Effective immediately, for tax years beginning on or after January 1, 2021, eligible natural taxpayers will be eligible for credit against their New York State personal income tax. This credit is calculated as follows:

  • For taxpayers whose gross qualified income is $ 75,000 or less, the applicable percentage is 14%.
  • For qualified taxpayers whose gross qualified income is more than $ 75,000 but less than $ 150,000, the applicable percentage is the difference between –
  • 14% and
  • 5% multiplied by a fraction whose numerator is the difference between the taxpayer's gross qualified income and $ 75,000 and whose denominator is $ 75,000.
  • For taxpayers whose gross qualified income is more than $ 150,000 but less than or equal to $ 250,000, the applicable percentage is the difference between:
  • 9%, and
  • 6% multiplied by a fraction whose numerator is the difference between the qualified taxpayer's gross qualified income and $ 150,000,
  • and the denominator of that is $ 100,000.
  • Taxpayers whose gross qualified income exceeds $ 250,000 will not be eligible for credit.
  • No credit is available to a property owner unless the property is being used for residential purposes and no more than 25% of any rental income from the property comes from renting for non-residential purposes; in addition, the property must be wholly or partially inhabited by one or more owners (Part III, amendment to the Tax Act § 606 (e-2)).

Residence means a New York State home owned and used by the taxpayer as their primary residence and as much of the adjacent land (up to an acre) is reasonably necessary for the home to be used as a residence. It can consist of part of a multi-family or multi-purpose building, including a cooperative or a condominium. Living includes a caravan or mobile home that is used exclusively for residential purposes.

To qualify, a taxpayer must be a resident individual of the state who has been in real estate for six months or more of the taxable year that has either received the School Tax Exemption (STAR) or who have qualified the taxpayer to receive the school Tax relief loan.

Qualified gross income is defined as the NYAGI of the qualified taxpayer for the tax year for federal income tax purposes. For the taxable year 2021, this is calculated without taking into account the decoupling of changes after March 1, 2020. When calculating Qualified Gross Income, the net loss amount reported in federal tables C, D, E, or F may be $ 3,000 per. do not exceed schedule. In addition, the net amount of any other separate loss category cannot exceed $ 3,000. The total of all losses included in the gross qualified income calculation cannot exceed $ 15,000.

An excess of property tax is defined as the excess of qualified property taxes of more than 6% of the qualified gross income.

Empire State Film Production and Post Production Credits

The Empire State Film Production Loan and Empire State Film Post Production Loan have been extended for one year to 2026 with immediate effect (Part F, Sections 1, 2, 3, and 4, Amending Taxes, Section 24). In addition, television pilots are now entitled to both credits (Part F, Section 5, Tax Code Amendment, Section 24 (b) (3)). Credit applies to applications submitted to the Governor's Office for Film and Television Development on or after April 1, 2021 (Part F, Section 6).

Restaurant return to work tax credit

The restaurant reintegration tax credit, effective immediately, is designed to provide financial incentives for economically damaged restaurants by providing financial relief, speeding up their recruitment efforts and reducing the duration and severity of their current economic troubles. This credit is valid for companies affected by COVID-19 and mainly active in the food services sector (Part PP, Subsection A, which adds new Article 25 of the Economic Development Act, Sections 471 and 472.7).

The food services sector affected by COVID-19 is defined as:

  • Independently owned establishments in New York City that have been prohibited from eating indoors for more than six months and are primarily organized to prepare and offer meals or beverages to customers for consumption, including for immediate consumption indoors, or
  • Independently owned establishments located outside of New York City in an area designated or maintained as an orange zone or red zone by the Department of Health under Executive Order 202.68, imposing additional restrictions on indoor eating for at least 30 consecutive days and are primarily organized to prepare and provide meals or beverages for consumption, including for immediate consumption indoors, and the
  • suffered economic damage as a result of the COVID-19 emergency, resulting in a decline in gross income or average full-time employment of at least 40% in New York state from year to year between the second quarter of 2019 and the second quarter of 2020 or the third Quarter of 2019 and the third quarter of 2020 and
  • Have demonstrated a net increase in the number of employees (Part PP, Subsection A, which adds the new Article 25 of the Economic Development Act, Section 472.9 (a), (b), (d), (e)).

“Average full-time employment” is defined as the average number of full-time equivalents employed by a business entity in an eligible industry during a specified period (Part PP, Subsection A, addition of Article 25, Section 472.1 of the Economic Development Act).

The “average start of full-time employment” is calculated as the average number of full-time equivalents employed by a business entity in an eligible industry between January 1, 2021 and March 31, 2021 (Economic Promotion Act Article 25, Section 472.2).

"Average ending full-time employment" is calculated as the average number of full-time equivalents earned by a business unit in an eligible industry between April 1, 2021 and either August 31, 2021 or the 31st the company chooses to use it (Economic Development Act Article 25 , Section 472.3).

“Net increase in employment” is an increase of at least one full-time equivalent employee between the average full-time employment at the beginning and the average full-time employment at the end of an economic entity (Economic Promotion Act § 25, § 472.8).

A business entity is entitled to a credit of $ 5,000 per full-time equivalent net increase, up to a maximum of $ 50,000 in tax credits under this program (Part PP, Subsection A, Addition of the New Economic Development Act, Article 25, Section 475.1, 475.2).

The total amount of credits issued under this program is limited to US $ 35,000,000 (Economic Development Act Article 25, Section 479).

Tax credit for music and theater productions in New York City

Applicable for tax years beginning on or after January 1, 2021 but before January 1, 2024 Qualifying New York Music and Theater Production Company), which is subject to tax under Article 9-A or 22, are credited against this tax (Part PP, Subsection B, Section 1, adding Section 24-c (1) of the Tax Code). (a) (1)).

The amount of the credit corresponds to the product (or the pro-rata portion of the product for a member of a partnership) of 25% and the sum of the qualifying production expenses paid during the qualifying New York musical and the loan period of the theater production. Credits cannot exceed $ 3,000,000 per qualifying New York musical and theater production for productions premiered in the first year that applications are accepted. For productions premiering in the second year that applications are accepted, the limit is reduced to $ 1,500,000 per qualifying production unless the New York City tourism industry has not recovered sufficiently, as reported by the Department of Economic Development in consultation with the department established the budget (Part PP, Subsection B, Section 1, addition of Tax Law Section 24-c (1) (a) (2)).

Qualifying Production Spending that is used by a taxpayer either as a basis for crediting the credit granted under this New York City Music and Theater Production Tax Credit or in calculating the New York City Music and Theater Production Tax Credit may not be used to claim a different credit (Part PP, Subsection B, Section 1, adding the new Tax Law Section 24-c (1) (a) (3)).

A qualifying New York musical and theater production company is a corporation, partnership, limited partnership, or other entity or individual primarily involved in the production of a qualifying musical or theatrical production to be performed in a qualifying New York production (Part PP , Subsection B, Section 1, adding new Tax Law Section 24-c (1) (b) (4)).

A qualifying company must draw the loan in the year its loan term ends (Part PP, Subsection B, Section 1, adding new Section 24-c (1) (c) of the Tax Code). The Loan Period of a Qualifying New York Musical and Theater Production Company is the period commencing on the Production Start Date and ending on the date the Qualified Production has spent enough Qualified Production Spending to meet its loan limit, the Production Date closes, or 31. March 2023. The production start date is the date up to 12 weeks prior to the first performance of the qualifying production (Part PP, Subsection B, Section 1, New Tax Law Section 24-c (1) (b) (5) (i), (ii)).

Qualified music and theater production means a for-profit, live dramatic stage presentation that is performed in its original or adaptive version in a qualifying New York City facility, whether or not that production was performed in a qualifying New York City facility prior to the state disaster emergency under Implementing Order 202 of 2020 (Part PP, Subsection B, Section 1, adding Section 24-c (1) (b) (1) of the Tax Act).

A qualified New York City manufacturing facility means a New York City facility:

  • in which mainly live theater productions are or are to be shown,
  • which contains at least one stage, a seating capacity of 500 or more seats as well as changing rooms, storage rooms and other ancillary facilities that are necessary for the qualified music and theater production, and
  • for ticket sales revenue is 75% or more of the facility's gross revenue (Part PP, Subsection B, Section 1, adding Section 24-c (1) (b) (3) of the Tax Act).

Qualifying Production Spend is defined as all costs of property, plant and equipment and services directly and predominantly used in the production of a Qualifying Music and Theater Production in New York State, including:

  • Design, construction and operation expenses, including sets, special and visual effects, costumes, wardrobe, makeup, supplies and costs for sound, lighting and stage,
  • all salaries, wages, fees and other allowances, including related benefits, for services rendered (total no more than $ 200,000 per week); and
  • Production costs for technology and crew, such as Subsection B, Section 1, adding new Tax Law Section 24-c (1) (b) (2)).

Qualified production expenses do not include costs incurred prior to the loan term.

Certified tax credit for historical structure

With immediate effect and for tax years beginning on and after January 1, 2022, taxpayers can be offset against income tax under Article 22, franchise tax against corporation tax under Article 9-A and franchise tax on insurance companies up to 150% of the permissible Federal Loans (and a total of $ 2,500,000 or less) in respect of a Certified Historic Structure (Part CCC, Sections 1, 2, and 3).

Pass-through corporate income tax

Eligible Partnerships and S-Companies may elect to pay a new voluntary corporate transit tax that is designed to mitigate the impact of the US $ 10,000 cap on state and local tax deductions (SALT) enacted in the 2017 Tax Cuts and Jobs Act Deduct federal tax, which gives partners and shareholders the full deduction for SALT, which is paid before the income is passed on to them. It can be offset against regular New York State income tax to offset the new corporation transit tax. This passed corporation tax allows individuals affected by the SALT cap to take advantage of the IRS-approved tax deductibility to mitigate its effects (Part C, Section 1, which adds new Tax Law Article 24-A).

An authorized partnership is defined as any business entity that is treated as a partnership for purposes of federal income tax and consists exclusively of natural persons. A Qualifying S company is defined as any New York S company made up of only natural shareholders. A qualifying S company includes any limited liability company that is treated as an S company for federal income tax purposes. A voting partnership is defined as any eligible partnership that has made a valid, timely choice. A voting S society is defined as any eligible S society that has made a valid, timely election. A taxpayer includes any choosing partnership or S-company (Part C, Section 1, adding new Tax Law Article 24-A, Sections 860 (a) – (e)).

The pass-through adjusted net income is defined as:

  • In the case of an election company, the sum of:
  • taxable federal income (not less than zero), if directly generated;
  • Throughput taxes paid or incurred during the tax year, insofar as they were deducted when calculating the taxable federal income;
  • Taxes substantially similar to the tax imposed or incurred in the tax year to any other state in the United States, a political subdivision of such state, or the District of Columbia, to the extent that they are deducted in calculating federal taxable income; and
  • guaranteed payments made by the partnership to its partners under IRC Section 707 (c) (Part C, Section 1, addition of Tax Law Article 24-A, Section 860 (g) (1)).
  • In the case of a voting S company, the sum of:
  • Federal income that is not calculated separately (not less than zero), regardless of whether it is generated by such an S company or a partnership of which the S company is a partner;
  • Taxes that were paid or accrued by an S company during the tax year, insofar as they were deducted from the calculation of ordinary federal income; and
  • Taxes that are substantially similar to the tax levied or incurred in the tax year to any other state in the United States, a political subdivision of such state, or the District of Columbia, to the extent that they are deducted in calculating federal taxable income (Part C, Section 1, adding Article 24-A of the Taxes Act, Section 860 (g) (2)).

The taxable income of a partnership with voting rights is defined as the sum of:

  • the electoral partnership's pass-through adjusted net income (not less than zero) allocated to New York State; and
  • the proportional share of the electing partnership in all pass-through adjusted net income (not less than zero) of a partnership of which it is a partner, provided that it was withdrawn from such a partnership in New York (Part C, Section 1, Addition of Taxes) . Law Article 24-A, Section 860 (h)).

The S corporation taxable income of a S electing S corporation is defined as the New York state pass-through adjusted net income (not less than zero) of the S electing S corporation.

Election and termination

Any eligible partnership or sub-company doing business in New York State may make an annual election to be subject to transit tax. If the company is an S corporation, the annual election must be signed by any officer, manager or shareholder who is authorized to conduct the election under the law of the state of incorporation or organizational documents and who agrees to such approval to have punishment of perjury. If the legal person is not an S company, the election must be made by any member, partner, owner or other person empowered to bind the legal person or sign declarations (Part C, Section 1 , Adding Article 24-A of the Tax Code, section). 861 (a), (b)).

Calendar year taxpayers must submit the annual pass-through tax election by December 1 of the previous year (Part C, Section 1, adding Article 24-A, Section 861 (c) of the Tax Act).

Taxpayers for the financial year must submit the annual pass-through for the corporation tax election on the 1st day of the last full month before the start of the financial year in order to be effective for the following financial year. If an election is made after that date, it will not take effect until the second consecutive financial year (Part C, Section 1, addition of Article 24-A, Section 861 (d) of the Taxes Act).

The election will end if the taxpayer ceases to be an eligible partnership or an eligible S-company at any point during the tax year. The termination of an election takes effect immediately if the taxpayer ceases to be an eligible partnership or an eligible S-corporation and if there is no transit tax for the tax year (Part C, Section 1, addition of Article 24-A of the Tax Act, Section 861 (e) (1), (2)).

If a termination is solely due to the death of a partner, member or shareholder of an otherwise entitled partnership or an S-company during the tax year, if the legal successor of the testator's shares in the partnership or S-company is not a natural person, no penalty in the event of underpayment of the estimated personal income tax, a tax surcharge will only be levied as a result of the termination of the election (Part C, Section 1, addition of the new Tax Act Article 24-A, Section 861 (e) (3)).

Wenn eine Wahl während des Steuerjahres beendet wird, muss die wählende Personengesellschaft oder S-Gesellschaft eine Erklärung abgeben, die den Kommissionspräsidenten benachrichtigt. Eine solche Benachrichtigung gilt als Anspruch auf Gutschrift oder Erstattung einer zu viel gezahlten Weiterleitungssteuer auf alle geschätzten Zahlungen für das Steuerjahr, das das Kündigungsdatum enthält (Teil C, Abschnitt 1, Hinzufügen von Artikel 24-A des Steuergesetzes, Abschnitt ). 865(c)).

Steuersatz und Umlage

Für jedes steuerpflichtige Jahr wird auf das steuerpflichtige Partnerschaftseinkommen jeder wählenden Personengesellschaft, die im Bundesstaat New York geschäftlich tätig ist, und auf das steuerpflichtige S-Körperschaftseinkommen jeder wählenden S-Körperschaft, die im Bundesstaat New York geschäftlich tätig ist, eine Steuer erhoben. Diese Steuer wird zusätzlich zu allen anderen erhobenen Steuern erhoben und wird in Höhe von 6,85 % für jedes Steuerjahr erhoben, das am oder nach dem 1. ein)).

Das steuerpflichtige Einkommen einer wählenden Personengesellschaft wird New York gemäß den Grundsätzen des Steuergesetzes von Artikel 22 zugerechnet. Das steuerpflichtige Einkommen einer wählenden S-Gesellschaft wird New York zugerechnet, indem das bereinigte Nettoeinkommen der wählenden S-Gesellschaft mit der Geschäftsverteilung multipliziert wird Faktor der wählenden S-Gesellschaft, wie er gemäß Steuergesetz-Artikel 9-A Abschnitt 210-A berechnet wird (Teil C, Abschnitt 1, Hinzufügen des neuen Steuergesetz-Artikels 24-A, Abschnitt 862 (b), (c)).

Pass-Through-Steuergutschrift für Unternehmen

Eine natürliche Person, die der New Yorker Einkommensteuer unterliegt, die ein Partner oder Mitglied einer wählenden Personengesellschaft oder ein Aktionär einer wählenden S-Gesellschaft ist, die der Durchleitungssteuer unterliegt, kann auf ihre persönliche Einkommensteuer angerechnet werden (Teil C, Abschnitt 1 .). , Hinzufügen des neuen Steuergesetzartikels 24-A, Abschnitt 863).

Einreichung und Zertifizierung

Die Steuererklärung ist am oder vor dem 15. Tag des 3. Monats nach dem Ende des Steuerjahres fällig (Teil C, Abschnitt 1, Hinzufügen des neuen Steuergesetzes Artikel 24-A, Abschnitt 865(a)).

Jede Steuererklärung des Durchlaufunternehmens muss eine Bescheinigung einer Person enthalten, die befugt ist, im Namen der wählenden Personengesellschaft oder der wählenden S-Gesellschaft zu handeln, dass der Steuerpflichtige:

  • eine rechtzeitige, gültige Wahl getroffen hat, um der Durchleitungssteuer zu unterliegen;
  • während des Steuerjahres jederzeit zur Wahl berechtigt war, es sei denn, diese Erklärung enthält eine Kündigungsmitteilung; und
  • dass alle in der Erklärung enthaltenen Aussagen wahr sind (Teil C, Abschnitt 1, der Artikel 24-A, Abschnitt 865(b) des Steuergesetzes hinzufügt).
Informationsberichterstattung

Jede wählende Personengesellschaft und jede wählende S-Gesellschaft muss bei ihrer Rückkehr Folgendes melden:

  • Der Saldo der ausgewiesenen Steuern, die zuvor nicht als Raten der geschätzten Steuer gezahlt wurden, ist mit der Erklärung zu begleichen;
  • Alle Partner, Mitglieder und Anteilseigner, die berechtigt sind, eine Gutschrift zu erhalten, und der ausschüttende oder anteilige Anteil dieser Partner, Mitglieder und Anteilseigner an der Durchleitungssteuer, die der wählenden Personengesellschaft oder S-Gesellschaft auferlegt wird, aber identifiziert wird; und
  • Alle anderen Informationen, die vom Beauftragten verlangt werden (Teil C, Abschnitt 1, Hinzufügen von Artikel 24-A, Abschnitt 865 (d) des Steuergesetzes).

Jede wählende steuerpflichtige Personengesellschaft muss jedem Gesellschafter oder Gesellschafter ihren Ausschüttungsanteil melden an:

  • das steuerpflichtige Einkommen der Personengesellschaft der wählenden Personengesellschaft;
  • die der wählenden Personengesellschaft auferlegte Durchleitungssteuer; und
  • alle anderen Informationen, die vom Beauftragten verlangt werden (Teil C, Abschnitt 1, Hinzufügen von Artikel 24-A, Abschnitt 865(e) des Steuergesetzes).

Jede wählende steuerpflichtige S-Gesellschaft muss jedem Aktionär ihren anteiligen Anteil melden an:

  • das steuerpflichtige S-Körperschaftseinkommen der wählenden S-Körperschaft;
  • die der wählenden S-Gesellschaft auferlegte Durchleitungssteuer; und
  • alle anderen Informationen, die vom Beauftragten verlangt werden (Teil C, Abschnitt 1, Hinzufügen von Artikel 24-A, Abschnitt 865 (f) des Steuergesetzes).
Zahlung der geschätzten Steuer

Die geschätzte Steuer bezieht sich auf den Betrag, den eine wählende Personengesellschaft oder eine wählende S-Körperschaft für das laufende Steuerjahr fällig wird (Teil C, Abschnitt 1, wobei Artikel 24-A, Abschnitt 864(a) des Steuergesetzes hinzugefügt wird).

Die geschätzte Steuer muss für eine wählende Personengesellschaft oder eine wählende S-Gesellschaft wie folgt gezahlt werden. Die geschätzte Steuer muss in vier gleichen Raten von 25 % der projizierten Durchleitungssteuer am 15. Tag des 3., 6., 9. und 12. Monats des Steuerjahres gezahlt werden (Teil C, Abschnitt 1, Hinzufügung des Steuergesetzes Artikel 24-A, Abschnitt 864(b)(1),(2)).

Um eine Unterzahlungsstrafe zu vermeiden, ist die erforderliche jährliche Zahlung der niedrigere Betrag von:

  • 90 % der in der Erklärung für das Steuerjahr ausgewiesenen Steuer; or
  • 100 % der Steuer, die in der Erklärung der wählenden Personengesellschaft oder der wählenden S-Gesellschaft für das vorangegangene Steuerjahr ausgewiesen wird (Teil C, Abschnitt 1, Hinzufügen von Artikel 24-A, Abschnitt 864(b)(1) des Steuergesetzes).

Umsatzsteuerbestimmungen

Ersatzteile für Milchpumpen sowie die Sammlung und Lieferung von Milchpumpen, die an Privatkäufer für den Heimgebrauch verkauft werden, sind von der Verkaufs- und Ausgleichssteuer befreit (Budget Act, Teil MM, Abschnitt 1, Hinzufügen des Steuergesetzes Abschnitt 1115(a)(46)).

Effective immediately, the exemption from sales tax for food and drink when sold for $1.50 or less through any vending machine that accepts coin or currency only, or when sold for $2.00 or less through any vending machine that accepts any form of payment other than coin or currency (whether or not it also accepts coin or currency) is extended through 2022 (Part SS, amending Tax Law section 1115(a)(i)(B)).

Other Business Tax Provisions

Effective for taxable years beginning on or after January 1, 2021, corporations classified as “taxicab” or “omnibus” are no longer subject to tax if they meet certain conditions. Such corporations are those—

  • which are organized, incorporated, or formed under the laws of any other state, country, or sovereignty, and
  • which neither own nor lease property in New York State in a corporate or organized capacity, nor
  • which maintain an office in this state in a corporate or organized capacity, but
  • which is doing business or employing capital in New York State by conducting at least one but fewer than 12 trips into the state during the calendar year (Part C, section 1, amending Tax Law Article 9, section 184(2)(b)).

Administrative Provisions

The penalty for the failure of an employer to provide complete and correct employee information has been increased from $50 to $100 per employee per calendar quarter. The maximum penalty imposed for any calendar quarter is increased from $10,000 to $20,000 (Budget Act, Part F, section 1, amending Tax Law section 685(v)(3)). Effective for returns filed on or after June 1, 2021 (Part F, section 2).

Effective immediately, the minimum amount of personal and corporate tax overpayment on which interest is allowed or is paid has been increased from $1.00 to $5.00. No interest shall be allowed or paid if the amount thereof is less than $5.00 (Budget Act, Part QQ).

Given the complexity of these tax provisions, CPAs need to understand how these changes impact their clients or employers. Indeed, given the increases in tax rates for high earners and corporations, we would expect more individuals and businesses to evaluate whether they should continue to reside or operate within New York State. Additionally, pass-through entities will also need to determine if the newly enacted Pass-through Entity Tax should be elected and its impact on the entity’s partners or shareholders.

Mark H. Levin, CPA, MST, own account, is a member of The CPA Journal Editorial Advisory Board. Corey Rosenthal, JD, is a principal at CohnReznick LLP, New York, N.Y. Peter Rabinowitz, JD, is a director, also at CohnReznick LLP.