N.Y. General City Law art. 2-D, § 5: Accounting periods and methods

§ 5. Accounting periods and methods.--(a) Accounting periods.--A

taxpayer's taxable year under this local law shall be the same as his

taxable year for federal income tax purposes.

(b) Change of accounting periods.--If a taxpayer's taxable year is

changed for federal income tax purposes, his taxable year for purposes

of this local law shall be similarly changed. If a taxable year of less

than twelve months results from a change of taxable year, the city

standard deduction, and the city personal exemptions shall be prorated

under regulations of the administrator.

(c) Accounting methods.--A taxpayer's method of accounting under this

local law shall be the same as his method of accounting for federal

income tax purposes. In the absence of any method of accounting for

federal income tax purposes, city taxable income shall be computed under

such method as in the opinion of the administrator clearly reflects

income.

(d) Change of accounting methods.--(1) If a taxpayer's method of

accounting is changed for federal income tax purposes, his method of

accounting for purposes of this local law shall be similarly changed.

(2) If a taxpayer's method of accounting is changed, other than from

an accrual to an installment method, any additional tax which results

from adjustments determined to be necessary solely by reason of the

change shall not be greater than if such adjustments were ratably

allocated and included for the taxable year of the change and the

preceding taxable years, beginning after July first, nineteen hundred

sixty-six, not in excess of two, during which the taxpayer used the

method of accounting from which the change is made.

(3) If a taxpayer's method of accounting is changed from an accrual to

an installment method, any additional tax for the year of such change of

method and for any subsequent year which is attributable to the receipt

of installment payments properly accrued in a prior year, shall be

reduced by the portion of tax for any prior taxable year attributable to

the accrual of such installment payments, in accordance with regulations

of the administrator.