N.Y. Tax Law § 659: Report of federal changes, corrections or disallowances

§ 659. Report of federal changes, corrections or disallowances. If the

amount of a taxpayer's federal taxable income, total taxable amount or

ordinary income portion of a lump sum distribution or includible gain of

a trust reported on their federal income tax return for any taxable

year, or the amount of a taxpayer's earned income credit or credit for

employment-related expenses set forth on such return, or the amount of

any federal foreign tax credit affecting the calculation of the credit

for Canadian provincial taxes under section six hundred twenty or six

hundred twenty-A of this article, or the amount of any claim of right

adjustment, is changed or corrected by the United States internal

revenue service or other competent authority or as the result of a

renegotiation of a contract or subcontract with the United States, or

the amount an employer is required to deduct and withhold from wages for

federal income tax withholding purposes is changed or corrected by such

service or authority or if a taxpayer's claim for credit or refund of

federal income tax is disallowed in whole or in part, the taxpayer or

employer shall report such change or correction or disallowance within

ninety days after the final determination of such change, correction,

renegotiation or disallowance, or as otherwise required by the

commissioner, and shall concede the accuracy of such determination or

state wherein it is erroneous. Provided, however, if the taxpayer is a

direct or indirect partner of a partnership required to report

adjustments in accordance with section six hundred fifty-nine-a of this

part, such taxpayer shall also report such adjustments in accordance

with section six hundred fifty-nine-a of this part. The allowance of a

tentative carryback adjustment based upon a net operating loss carryback

pursuant to section sixty-four hundred eleven of the internal revenue

code shall be treated as a final determination for purposes of this

section. Any taxpayer filing an amended federal income tax return and

any employer filing an amended federal return of income tax withheld

shall also file within ninety days thereafter an amended return under

this article, and shall give such information as the commissioner may

require. The commissioner may by regulation prescribe such exceptions to

the requirements of this section as they deem appropriate. For purposes

of this section, (i) the term "taxpayer" shall include a partnership

having a resident partner or having any income derived from New York

sources, and a corporation with respect to which the taxable year of

such change, correction, disallowance or amendment is a year with

respect to which the election provided for in subsection (a) of section

six hundred sixty of this article is in effect, and (ii) the term

"federal income tax return" shall include the returns of income required

under sections six thousand thirty-one and six thousand thirty-seven of

the internal revenue code. In the case of such a corporation, such

report shall also include any change or correction of the taxes

described in paragraphs two and three of subsection (f) of section

thirteen hundred sixty-six of the internal revenue code. Reports made

under this section by a partnership or corporation shall indicate the

portion of the change in each item of income, gain, loss or deduction

(and, in the case of a corporation, of each change in, or disallowance

of a claim for credit or refund of, a tax referred to in the preceding

sentence) allocable to each partner or shareholder and shall set forth

such identifying information with respect to such partner or shareholder

as may be prescribed by the commissioner.