Returns.
19 RCNY § 3-05
in effect§ 3-05 Returns.
(a) General.
(1) Corporations required to file returns. (Administrative Code, § 11-646(a))
(i) Returns are required to be filed annually by:
(A) every banking corporation subject to tax (See: 19 RCNY § 3-01(c) – Corporations subject to tax);
(B) every bank holding company required or permitted to make a combined return under 19 RCNY § 3-05(b); and
(C) every taxpayer which continues in business in New York City after it is dissolved.
(ii) Every banking corporation claiming not to be subject to tax but having one or more officers, agents or representatives within New York City must submit a complete description of its activities in New York City in an information report (form NYC-245) which it must file annually. If the Commissioner of Finance determines the banking corporation is subject to tax, he will notify such corporation to file a tax return. The filing of the information report does not start the period of limitation within which the Commissioner of Finance may assess the tax.
(2) Short period returns. (Administrative Code, § 11-646(a)) A short period return is required in the case of:
(i) a newly organized taxpayer whose first accounting period is less than 12 months;
(ii) a foreign corporation that becomes subject to the banking corporation tax in New York City subsequent to the commencement of its Federal accounting period;
(iii) a taxpayer that dissolves, merges, consolidates or ceases to be subject to tax pursuant to the banking corporation tax prior to the close of its accounting period for Federal income tax purposes;
(iv) a taxpayer that changes its accounting period for Federal income tax purposes;
(v) a taxpayer that becomes part of or ceases to be part of a Federal consolidated group during the year;
(vi) a taxpayer which changes from one Federal consolidated group to another Federal consolidated group during the year; and
(vii) a taxpayer that is an old target (within the meaning of Treas. Reg. § 1.338-2(c)(17)) for which an election is made pursuant to § 338 of the Internal Revenue Code and not deemed invalid pursuant to 19 RCNY § 3-03(b)(2)(vi), if the acquisition date, as defined in § 338(h)(2) of the Internal Revenue Code, is other than the last day of the taxpayer's taxable year determined without regard to such election. A short period report required by this subdivision shall cover the period provided in subdivision (a) of 19 RCNY § 3-02 and shall be filed as provided in subdivision (d) of this section.
(3) Returns where Federal or New York State income is changed. (Administrative Code, § 11-646(e))
(i) If the amount of the taxable income for any year of any taxpayer as reported for Federal income tax or New York State franchise tax purposes is changed or corrected by a final determination of the Commissioner of Internal Revenue or other officer of the United States or the New York State Tax Commission or other competent authority, or if a taxpayer, pursuant to subsection (d) of § 6213 or the Internal Revenue Code, executes a notice of waiver of the restrictions, provided in subsection (a) of such section, or, pursuant to subsection (f) of § 1081 of the New York State Tax Law, executes a notice of waiver of the restrictions provided in subsection (c) of such section, the taxpayer is required to report to the Commissioner of Finance such changed or corrected taxable income or such execution of such notice of waiver and the changes or corrections of its Federal or New York State taxable income on which it is based within 90 days after the final determination or the execution of the notice of waiver. The taxpayer must concede the accuracy of such determination or state wherein it is erroneous.
(ii) Any deficiency notice issued (including a notice issued pursuant to a waiver filed by a taxpayer) pursuant to the provisions of the Internal Revenue Code or the New York State Tax Law is a final determination unless a timely petition to redetermine the deficiency is filed in the Tax Court of the United States or with the New York State Tax Commission. If a petition is filed, the judgment of the court of last resort is the final determination. The allowance by the Commissioner of Internal Revenue or the New York State Tax Commission of a refund of any part of the tax shown on the taxpayer's return or of any deficiency thereafter assessed, whether the refund is made on the Commissioner's or State Tax Commission's own motion or pursuant to the judgment of a court, is also final determination.
(4) Amended Federal or New York State return. (Administrative Code, § 11-646(e))
(i) Any taxpayer which files an amended return with the Internal Revenue Service or the New York State Tax Commission must file an amended return within 90 days thereafter with the Commissioner of Finance.
(b) Combined returns.
(1) General. (Administrative Code, § 11-646(f))
(i) Each banking corporation (as defined in 19 RCNY § 3-01(b)(5)) or bank holding company (as defined in 19 RCNY § 3-01(b)(4)) is a separate taxable entity and must file its own return. However, where the requirements described in 19 RCNY § 3-05(b)(2) and (b)(3) are met, a group of banking corporations and bank holding companies may be required or permitted to file a combined return.
(ii) Each of the corporations to be included in the combined return must be a banking corporation or a bank holding company.
(iii) A corporation organized under the laws of the United States, New York State, or any other state may not be included in a combined return with an alien corporation (a corporation organized under the laws of a country other than the United States.) That is, an alien corporation can only be included in a combined return with other alien corporations.
(iv) Each corporation included in a combined return must use the same accounting period.
(v) For purposes of this subdivision, the provisions of 19 RCNY § 3-01(b)(5)(x)(A)((c)) and (b)(5)(x)(A)((d)) relating to "ownership" and "control" apply.
(2) Corporations required to file a combined return. (Administrative Code, § 11-646(f))
(i) (A) A banking corporation or bank holding company which is doing business in New York City in a corporate or organized capacity is required to file a return on a combined basis covering itself and the following corporations:
(a) any banking corporation or bank holding company which owns or controls, directly or indirectly, 80 percent or more of its voting stock, and
(b) any banking corporation or bank holding company in which it owns or controls, directly or indirectly, 80 percent or more of the voting stock.
(B) For provisions regarding a banking corporation or a bank holding company which is not a taxpayer, see 19 RCNY § 3-05(b)(6)(i).
(ii) It will be presumed that the tax liability of any banking corporation or bank holding company described in subparagraph (i)(A) of this paragraph will be properly reflected when such corporation reports on a combined basis. Such a corporation may nevertheless be excluded from the combined return if the taxpayer or the Commissioner of Finance shows that the inclusion of such a corporation in the combined return fails to properly reflect the tax liability of such corporation under the banking corporation tax law. Tax liability may be deemed to be improperly reflected because of intercorporate transactions or some agreement, understanding, arrangement or transaction referred to in 19 RCNY § 3-03(a)(3).
(iii) (A) A banking corporation or bank holding company described in subparagraph (i)(A) of this paragraph of this section that meet the applicable requirements may be excluded from a combined return in accordance with paragraph (b)(5) of this section.
(B) A group of corporations meeting the requirements of subparagraph (i)(A) of this section may make a written request, in accordance with 19 RCNY § 3-05(b)(5), for preliminary review as to which corporations are to be included in a combined return.
(iv) A group of corporations filing a combined return pursuant to subparagraph (i)(A) of this paragraph must submit all of the information described in 19 RCNY § 3-05(b)(5)(iii) with its combined return unless such information has already been submitted pursuant to subparagraph (iii) of this paragraph.
(3) Corporations permitted or required to file a combined return. (Administrative Code, § 11-646(f))
(i) A) In the discretion of the Commissioner of Finance, any banking corporation or bank holding company which is doing business in New York City in a corporate or organized capacity and
(a) any banking corporation or bank holding company which owns or controls, directly or indirectly, 65 percent or more of its voting stock, and
(b) any banking corporation or bank holding company in which it owns or controls, directly or indirectly, 65 percent or more of the voting stock, may be permitted or required to make a return on a combined basis. The Commissioner of Finance will permit or require such corporations to file on a combined basis if he determines that a combined return is necessary in order to properly reflect the tax liability of such a banking corporation or bank holding company. The corporations described in subparagraphs (i)(A)((a)) and (i)(A)((b)) of this paragraph include corporations which are not doing business in New York City in a corporate or organized capacity.
(B) The Commissioner of Finance may, in his discretion, permit or require the filing of a combined return by banking corporations or bank holding companies 65 percent or more of the voting stock of each of which is owned or controlled, directly or indirectly, by the same interest, if at least one of such corporations is a taxpayer and if the Commissioner of Finance determines that such filing is necessary in order to properly reflect the tax liability of any one or more of such corporations.
(ii) (A) For those corporations described in subparagraph (i) of this paragraph, in making his determination whether a combined return is necessary in order to properly reflect the tax liability of any one or more of such corporations, the Commissioner of Finance will first determine whether the group of corporations under consideration is engaged in a unitary business. In deciding whether a corporation is part of a unitary business, the Commissioner of Finance will consider whether the activities in which the corporation engages are related to the activities of the other corporations in the group, or whether the corporation is engaged in the same or related lines of business as the other corporations in the group. It will be presumed that a group of corporations meeting the stock ownership requirements of subparagraph (i) of this paragraph (including those also meeting the requirements of 19 RCNY § 3-05(b)(2)(i)(A) and (b)(6)(i)) is engaged in a unitary business. The burden of establishing that a corporation in such group is not part of a unitary business shall be upon the person so asserting, whether such person be the Commissioner of Finance or any member of such group.
(B) When a taxpayer engaged in a unitary business reports on a separate basis, the tax liability of such taxpayer and any other banking corporation or bank holding company in such unitary business may be deemed to be improperly reflected because of:
(a) intercorporate transactions (See: subparagraph (ii)(c) of this paragraph), or
(b) some agreement, understanding, arrangement or transaction existing between the taxpayer and any other combinable corporation, whereby the activity, business, income or assets of the taxpayer within New York City is improperly or inaccurately reflected.
(C) (a) If there are substantial intercorporate transactions among the banking corporations or bank holding companies engaged in a unitary business, it will be presumed that the tax liability of the taxpayer will be improperly reflected when the taxpayer reports on a separate basis. In determining whether there are substantial intercorporate transactions, the Commissioner of Finance will consider transactions directly connected with the business conducted by such corporations, such as:
(1) performing services for other corporations in the group;
(2) providing funds to other corporations in the group; or
(3) performing related customer services using common facilities and employees. Service functions will not be considered when they are incidental to the business of the corporation providing such services. Service functions include, but are not limited to, accounting, legal and personnel services. The substantial intercorporate transaction test may be met where as little as 50 percent of a corporation's receipts or expenses are from one or more qualified activities described in subparagraph (ii)(c). It is not necessary that there be substantial intercorporate transactions between any one member with every other member of the group. It is, however, essential that each corporation have substantial intercorporate transactions with one other combinable corporation or with a combined or combinable group of corporations. For example, corporations X, Y and Z are banking corporations and Z derives 30 percent of its receipts from the performance of services for corporation X and 40 percent from the performance of services for corporation Y. If corporations X and Y constitute a combined or combinable group, there are substantial intercorporate transactions between corporation Z and such a combined group because 70 percent of corporation Z's receipts are from such combined group. If corporations X and Y do not constitute a combined or combinable group, there are not substantial intercorporate transactions between corporation Z and corporations X and Y.
(b) If a corporation described in subdivision (a) of this section fails to meet the presumption of improper reflection of tax liability because it does not have substantial intercorporate transactions with any other combinable corporation or with a combined or combinable group of such corporations and if the filing of a return on a separate basis nevertheless results in an improper reflection of the taxpayer's tax liability in New York City, the Commissioner of Finance will permit or require the filing of a combined return. If a corporation described in subdivision (a) of this section meets the presumption of improper reflection of tax liability because it has substantial intercorporate transactions with any other combinable corporation or with a combined or combinable group of such corporations and if the filing of a return on a separate basis does not result in an improper reflection of the taxpayer's tax liability in New York City, the Commissioner of Finance will not permit or require the filing of a combined return.
(D) When a taxpayer reports on a separate basis, the tax liability of such taxpayer and any other banking corporation or bank holding company may be deemed to be improperly reflected because of some agreement, understanding, arrangement or transaction existing between the taxpayer and any other combinable corporation, whereby the activity, business, income or assets of the taxpayer within New York City is improperly or inaccurately reflected.
(iii) Except for corporations described in 19 RCNY § 3-05(b)(2)(i)(A) any banking corporation or bank holding company described in subparagraph (i) of this paragraph and those described in 19 RCNY § 3-05(b)(6)(i) that meets the applicable requirements may file a combined return with one or more corporations or bank holding companies or be added to or excluded from a combined return in accordance with 19 RCNY § 3-05(b)(5).
(4) Examples. Example 1: Assume the same facts as in Example 1 of 19 RCNY § 3-01(b)(5)(x)(A)(d) and that all of the corporations except corporation E are organized under the laws of New York State. Assume that corporation E is organized under the laws of Canada. Bank A, bank B, corporation D, E, F and G are banking corporations. The Federal bank holding company and bank A are required (unless the requirements of 19 RCNY § 3-05(b)(2)(ii) are met) to file a combined return pursuant to the provisions of 19 RCNY § 3-05(b)(2). Bank B and corporation F are required (unless the requirements of 19 RCNY § 3-05(b)(2)(ii) are met) to file a combined return pursuant to the provisions of 19 RCNY § 3-05(b). Corporations D and G may be permitted or required to be included in a combined return with the Federal bank holding company and bank A pursuant to the provisions of 19 RCNY § 3-05(b)(3).
Example 2: A, a Federal bank holding company, owns 100 percent of the voting stock of bank B and corporation C. Corporation C owns 100 percent of the voting stock of corporations D and E. All of the corporations are taxpayers. A performs services for and provides funds to bank B and corporations C, D and E. Corporations C and D are in the finance leasing business and corporation E conducts a consumer finance business. A, bank B and corporations C, D and E are required to file a combined return pursuant to 19 RCNY § 3-05(b).
(5) Procedure for adding to, excluding from or filing a combined return.
(i) (A) A banking corporation or bank holding company described in 19 RCNY § 3-05(b)(2)(i) that meets the requirements for exclusion set forth in 19 RCNY § 3-05(b)(2)(ii) does not need to request prior permission to be excluded from a combined return. To be excluded from a combined return, such entity must file a completed separate return. The first year such entity is excluded from the combined return, such entity must include the information required by subparagraph (iii) of this paragraph (5) either on the return or attached thereto.
(B) A banking corporation or bank holding company described in 19 RCNY § 3-05(b)(3)(i) or 19 RCNY § 3-05(b)(6)(i), that meets the applicable requirements set forth in 19 RCNY § 3-05(b)(3) does not need to request prior permission to file on a combined basis with one or more banking corporations or bank holding companies or to be added to or excluded from a combined return. To file on a combined basis, such entity must be included in a completed combined return. The first year such entity files on a combined basis, and each year thereafter in which the composition of the group changes, the information required by subparagraph (iii) of this paragraph (5) must be submitted, either on the return or attached thereto.
(ii) [Reserved.]
(iii) The first year the group files on a combined basis and each year thereafter in which the composition of the group changes, the Commissioner requires the following information either on the combined return or attached thereto:
(A) the corporate organization chart setting forth the name of each banking corporation and bank holding company meeting the stock ownership requirements of 19 RCNY § 3-05(b)(3)(i) and the percentage of voting stock of each such corporation owned or controlled, directly or indirectly, by any other such corporation and the name of each corporation or, other person in the case of a corporation described in 19 RCNY § 3-05(b)(3)(i)(B), which owns or controls, directly or indirectly, the voting stock of each such corporation and the percentage of such stock so owned;
(B) for all of the bank holding companies, banking corporations and other corporations meeting the stock ownership requirements of 19 RCNY § 3-05(b)(3)(i):
(a) the exact name,
(b) address (including ZIP code),
(c) employer identification number,
(d) date of incorporation,
(e) state or country of incorporation,
(f) the date began business in New York City, if applicable, and
(g) in the case of a corporation described in 19 RCNY § 3-01(b)(5)(x), a description of the activities in which the corporation is principally engaged (as defined in such 19 RCNY § 3-01(b)(5)(x)) and the section of the law or regulations which establish that such activities are permissible activities within the contemplation of 19 RCNY § 3-01(b)(5)(x)(A)(a);
(C) a statement providing details as to why the inclusion of those corporations included in a combined return and the exclusion of those corporations excluded from a combined return properly reflect the tax liability of the group of corporations and of each corporation to be included in the group and of each corporation to be excluded from the group; and
(D) for the taxable year covered by the combined return, using spread sheets if necessary, information that will clearly identify on a corporation-by-corporation basis, the nature and amount of each category of intercorporate transaction between each one of the corporations described in subparagraph (iii)(B) of this paragraph with each of the other corporations which reflects:
(a) the source and amount of gross receipts of each corporation described in subparagraph (iii)(B) of this paragraph and the portion derived from transactions with each of the other corporations,
(b) the source and amount of total services and other transactions of each corporation described in subparagraph (iii)(B) of this paragraph, and the portion related to transactions with each of the other corporations, and
(c) any other data that shows the degree of involvement of the corporations with each other.
(E) If the New York State Department of Taxation and Finance disallows the filing of a combined report or the inclusion of a corporation in, or the exclusion of a corporation from, a combined report for purposes of Article 9-A of the New York State Tax Law, the taxpayer must report such fact to the Commissioner of Finance within 30 days following such disallowance.
(iv) The filing of a combined return, the inclusion of a corporation in or the exclusion of a corporation from a combined return is subject to revision or disallowance on audit. In such event, the Commissioner of Finance may compute and assess the tax of each corporation not permitted to be included in a combined report on a separate basis and the Commissioner of Finance may recompute and assess the tax on the combined return by including therein any improperly excluded corporation.
(v) A corporation that properly reports on a combined basis must continue to file its returns on a combined basis until the facts affecting its combined reporting status materially change. A corporation properly excluded from a combined return must continue to file its return on a separate basis until the facts materially change. For example, if a corporation which was 65 percent or more but less than 80 percent owned or controlled becomes 80 percent or more owned or controlled, or if a corporation which was 80 percent or more owned or controlled, becomes less than 80 percent owned or controlled, a material change has taken place.
(vi) Once a group of corporations properly files a combined return, it must notify the Commissioner of Finance of the subsequent acquisition of any corporation for which information is requested pursuant to subparagraph (iii)(B) of this paragraph. Such notification must be given on the combined return for the taxable year in which such acquisition was made. The notification must contain all the information described in subparagraph (iii) of this paragraph.
(6) Corporations not included in a combined return. (Administrative Code, § 11-646(f))
(i) A banking corporation or bank holding company which is not a taxpayer cannot be included in a combined return under 19 RCNY § 3-05(b)(2) unless it is part of a unitary business with the other corporations in the group (See: 19 RCNY § 3-05(b)(3)(ii)(A)) and the Commissioner of Finance determines that the inclusion of such corporation is necessary in order to properly reflect the tax liability of one or more banking corporations or bank holding companies included in the group because of:
(A) intercorporate transactions (See: 19 RCNY § 3-05(b)(3)(ii)(C)); or
(B) some agreement, understanding, arrangement or transaction existing between the taxpayer and any other combinable corporation, whereby the activity, business, income or assets of the taxpayer within New York City is improperly or inaccurately reflected (See: 19 RCNY § 3-05(b)(3)(ii)(D))
(ii) A corporation which has properly elected to be taxable under Subchapter 2 of Chapter 6 of Title 11 of the Administrative Code for a taxable year in accordance with the provisions of 19 RCNY § 3-01(b)(5)(x)(B) cannot be included in a combined return for that taxable year.
(7) Combined returns: cross-references. The following is a list of cross-references to other sections of these regulations which pertain to combined returns:
(i) Computing tax on combined returns, see 19 RCNY § 3-03(a)(2).
(ii) Definition of entire net income, see 19 RCNY § 3-03(b)(2)(iii).
(iii) Computing entire net income on a combined return, see 19 RCNY § 3-03(b)(6).
(iv) Computing the alternative minimum tax measured by alternative entire net income on a combined return, see 19 RCNY § 3-03(d)(2) of these regulations.
(v) Computing the alternative minimum tax measured by taxable assets on a combined return, see 19 RCNY § 3-03(e)(6).
(vi) The alternative minimum tax measured by the fixed minimum amount on a combined return, see 19 RCNY § 3-03(g)(2).
(vii) Allocation of entire net income on combined returns, see 19 RCNY § 3-04(b)(4).
(viii) Allocation of alternative entire net income on combined returns, see 19 RCNY § 3-04(c)(4).
(ix) Allocation of taxable assets on combined returns, see 19 RCNY § 3-04(d)(3).
(x) Receipts factor on combined returns, see 19 RCNY § 3-04(f)(10).
(xi) Form of combined returns, see 19 RCNY § 3-05(c)(2).
(xii) Combined corporations ceasing to be subject to the banking corporation tax, see 19 RCNY § 3-05(d)(3).
(xiii) Extension of time for filing combined returns, see 19 RCNY § 3-05(d)(4).
(xiv) Payment of tax on combined return, see 19 RCNY § 3-06(a).
(c) Form of returns.
(1) Form of returns. (General) (Administrative Code, § 11-646(a), (b), (d) and (e))
(i) Returns are required to be filed on forms prescribed by the Commissioner of Finance. All taxpayers are required to file form NYC-1. A taxpayer must submit with such return a copy of its actual Federal form 1120 or 1120F and all attachments. In addition, it must submit the following information:
(A) payor and amount of each dividend;
(B) payor and amount of each item of gross interest income described in 19 RCNY § 3-03(b)(4)(ii)(L);
(C) description and amount of each item of other income;
(D) the amount and type of taxes paid to each jurisdiction;
(E) a schedule showing all computations pertaining to an IBF.
(ii) When a consolidated return is filed for Federal income tax purposes, the taxpayer must also submit with its form NYC-1 a copy of the consolidating spread sheets and supporting schedules required for Federal income tax purposes.
(iii) A change in Federal or New York State taxable income must be reported and must be accompanied by a copy of the amended Federal or New York State return or the Federal revenue agent's report or New York State audit report and copies of all other related information.
(iv) Any banking corporation which is not a taxpayer but which has one or more officers, agents or representatives within New York City is required to file an information report on form NYC-245.
(v) Every taxpayer must submit such other returns and other information which the Commissioner of Finance may require in the administration of the banking corporation tax law.
(vi) Every return must have annexed to it a certification that the statements in the return are true. The certification must be made by the president, vice-president, treasurer, assistant treasurer, chief accounting officer or any other officer of the taxpayer authorized to act in that capacity. The fact that an individual's name is signed on the certification of the return shall be prima facie evidence that such individual is authorized to sign and to certify the return on behalf of the corporation.
(vii) Annual return forms are supplied by the Commissioner of Finance. Copies of the prescribed forms will, upon request, be furnished by the Commissioner of Finance. Failure to receive a blank form does not excuse failure to file the return.
(2) Form of combined return. (Administrative Code, § 11-646(a))
(i) In all cases where a combined return is permitted or required (See: 19 RCNY § 3-05(b) – Combined returns), a combined banking corporation tax return must be submitted on form NYC-3A-F. In addition, a separate banking corporation tax return must be filed for each corporation in the combined group on form NYC-1.
(ii) All corporations in the combined group must use the same accounting period.
(3) Forms to be used.
(i) Return forms may be obtained from the Department of Finance, Taxpayer Services Division, 151 West Broadway, New York, New York 10013.
(ii) The following is a list of forms to be used:
Form No. Description
NYC-6B Application for 6 Month Extension for Filing Tax Return
NYC-6.1B Application for Additional Extension
NYC-8 Claim for Credit or Refund of Corporation Tax Paid
NYC-1 Tax Return for Banking Corporations
NYC-1A-F Combined Tax Return for Banking Corporations
NYC-245 Activities Report of Corporations
NYC-324 Schedule of Optional Depreciation on Qualified New York Property
NYC-399 Schedule for New York City Depreciation Deduction
NYC-400B Declaration of Estimated Tax
NYC-3360B Banking Corporation Tax Report of Change in Tax made by U.S. Internal Revenue Service and/or NY State Department of Taxation and Finance
(d) Time and place for filing returns.
(1) Time for filing returns. (Adminstrative Code, § 11-646(a)) Returns must be filed at the times set forth in this subparagraph.
(i) Except as provided in paragraph (8) of this subdivision, every calendar year taxpayer must file its return on or before the 15th day of March following the close of its calendar year.
(ii) Except as provided in paragraph (8) of this subdivision, every fiscal year taxpayer must file its return on or before the 15th day of the third month following the close of its fiscal year.
Example 1: A corporation selects the fiscal year basis of reporting and uses September 30 as the last day of its fiscal year. Its return must be filed on or before December 15.
(iii) Except as provided in paragraph (8) of this subdivision, every taxpayer using a 52-53 week accounting period must file its annual return on or before the 15th day of the third month following the date on which its fiscal year is deemed to have ended. A 52-53 week accounting period which ends within seven days from the last day of any calendar month will be deemed to have ended on the last day of such month (See: 19 RCNY § 3-02(a)(4) – 52-53 week fiscal year taxpayers).
Example 2: A corporation selects a 52-53 week accounting period ending on the Monday nearest the last day of November. In 1985, the Monday nearest the last day of November is Monday, December 2. The accounting period is deemed to have ended on the last day of November and its return must be filed on or before February 15, 1986.
(2) Time for filing changes in Federal or New York State taxable income. (Administrative Code, § 11-646(e)) Any change in Federal or New York State taxable income must be reported within 90 days after the date of final determination by the Commissioner of Internal Revenue or other officer of the United States or the New York State Tax Commission or other competent authority. For a description of change in Federal or New York State taxable income and final determination, see 19 RCNY § 3-05(a)(3).
(3) Time for filing returns of corporations ceasing to be subject to tax. (Administrative Code, § 11-646(a))
(i) (A) A taxpayer that ceases to do business in New York City in a corporate or organized capacity and thereby ceases to be subject to the banking corporation tax (See: 19 RCNY § 3-02(c) – Cessation Periods), is required to file a return on or before the 15th day following the date of such cessation or at such other time as the Commissioner of Finance may require, covering the period from the close of its last calendar or fiscal year up to and including the date of such cessation.
(B) A taxpayer that ceases to be subject to the banking corporation tax because of a change in the nature of its activities or because of a change in the ownership or control of its voting stock (See: 19 RCNY § 3-02(c) – Cessation Periods), is required to file a return on or before the 15th day following the date of such change or at such other time as the commissioner of Finance may require, covering the period from the close of its last calendar or fiscal year up to and including the date of such change. This subparagraph shall not apply to a taxpayer for which an election is made pursuant to § 338 of the Internal Revenue Code, regardless of whether such election is deemed invalid pursuant to 19 RCNY § 3-03(b)(2)(vi), notwithstanding any deemed cessation of existence of such taxpayer pursuant to Treas. Reg. § 1.338(h)(10)-1(d)(4).
(ii) Notwithstanding subparagraph (i) of this paragraph (3), a corporation need not file a separate report within 15 days of the date it ceases to be subject to the banking corporation tax (See: 19 RCNY § 3-02(c) – Cessation Periods) if:
(a) it is a member of a group taxed on the basis of a combined report for the period including the date of such cessation; and
(b) it is properly included in such combined report.
(4) Extension of time for filing returns. (Administrative Code, § 11-646(c).)
(i) An automatic six month extension for filing an annual return will be granted if the application for automatic extension (form NYC-6B) is filed and a properly estimated tax is paid on or before the due date of the return for the taxable period for which the extension is requested. (See: 19 RCNY § 3-06(a)(3) – Properly estimated tax.) Failure to meet the requirements of this subparagraph (i) will make the application invalid and any return filed after the due date will be treated as a late filed return.
(ii) An automatic six month extension for filing a combined return will be granted to a group of corporations authorized to file a combined return if the application for automatic extension (form NYC-6B) is filed and a properly estimated tax is paid on or before the due date of the return for the taxable period for which the extension is requested. (See: 19 RCNY § 3-06(a)(3) – Properly estimated tax.) Failure to meet the requirements of this subparagraph (ii) will make the application invalid and any return filed after the due date will be treated as a late filed return. To obtain an automatic extension, an application must be filed by the corporation paying the tax for the combined group. The applicant must submit the following information:
(A) its complete name;
(B) its employer identification number;
(C) a list showing the name, employer identification number and taxable period of each of the other corporations properly included as part of the combined group; and
(D) a list showing the estimated tax for each corporation included in the combined group. The corporation paying the tax for the combined group must pay with the application the properly estimated combined tax plus $125, as provided in 19 RCNY § 3-03(g)(2), for each of the taxpayers included in the combined group.
(iii) On or before the expiration of the automatic six month extension, the Commissioner of Finance may grant additional three month extensions of time for filing returns when good cause exists. Up to two additional three month extensions of time for filing returns for any taxable year may be granted when good cause exists. An application for each additional three month extension must be made in writing before the expiration of the previous extension. Additional extensions of time for filing by a combined group must be requested in one application by the corporation paying the tax for the combined group. The applicant must submit the following information:
(A) its complete name;
(B) its employer identification number;
(C) the reason for requesting the additional extension; and
(D) in the case of an application by a combined group, a list showing the name, employer identification number and taxable period of the other corporations properly included as part of the combined group.
(iv) Any extension of time for filing a return granted under this Subpart will not extend the time for payment of any tax due. (However, see 19 RCNY § 3-06(a)(2) for extension of time for payment of tax.)
(v) Notwithstanding paragraph (3) of this subdivision, a corporation that ceases to be subject to the banking corporation tax shall receive an automatic six-month extension of time for filing an annual tax report (form NYC-1) only on the condition that form NYC-6FB (Application for Automatic Extension to File Final Return) is filed and a properly estimated tax is paid on or before the due date of the return for the taxable period for which the extension is requested.
(5) Place for filing returns. Returns must be mailed to the Department of Finance at the address designated on the return form.
(6) Last day on a Saturday, Sunday or legal holiday. (Administrative Code, § 11-682(3)) When the last day prescribed in these regulations for filing a return (including the last day covered by an extension of time) falls on Saturday, Sunday or a legal holiday in New York State, the filing of such return will be considered timely if it is filed on the next succeeding date which is not a Saturday, Sunday or legal holiday.
(7) Mailing of returns. (Administrative Code, § 11-682(1)) The provisions of the Regulations of the Commissioner of Finance Relating to the Mailing Rules for New York City Income and Excise Taxes apply with respect to banking corporation tax returns and payments. Generally, those regulations provide that if a tax return or payment properly addressed with sufficient postage prepaid is delivered to the Department of Finance by U.S. mail after the due date, the date of the U.S. Postal Service postmark stamped on the envelope will be deemed the date of delivery, provided the postmark date falls on or before the due date. Non-U.S. Postal Service postmarks will also be recognized, provided delivery to the Department of Finance occurs within five days of the postmark date. If the five-day limit is exceeded, the taxpayer must establish that the item was actually deposited in the mail by the due date, that the delay in receipt was due to a delay in the transmission of mail, and the cause of the delay.
(8) Electronic filing. Pursuant to 19 RCNY § 17-03, the Commissioner may authorize the electronic filing of returns and reports required by this section.
(9) Short period reports.
(i) Taxpayers joining a Federal consolidated group.
(A) Short period precedes joining the group. Except as otherwise provided in subparagraph (iii) or (iv) of this paragraph, where a taxpayer, not previously part of a Federal consolidated group, becomes part of a Federal consolidated group on a day other than the first day of its Federal taxable year, determined without reference to its membership in the group, and the taxpayer is required to file a Federal short period return for the period from the first day of its taxable year through the end of the day on which it becomes such a member pursuant to Treas. Reg. § 1.1502-76(b), the taxpayer must file a report under this section covering the same period. The short period report required by this subparagraph shall be due on the due date for the Federal short period return as provided by paragraph (1) or (2) of subdivision (c) of Treas. Reg. § 1.1502-76, whichever is applicable. This provision does not apply in the case of an amended Federal short period return required under Treas. Reg. § 1.1502-76(c)(2). An amended return for any such short period must be filed within 90 days after the taxpayer files an amended return with the United States Treasury Department. See paragraph (4) of subdivision (a) of this section.
(B) Short period follows joining group. Except as otherwise provided in subparagraph (iii) or (iv) of this paragraph, where a taxpayer joins a Federal consolidated group, including a situation where a taxpayer leaves one group to join another, the taxpayer must file a short period report under this paragraph covering the period from the day it becomes a member of the group through the end of its new taxable year for purposes of Subchapter 3 of Chapter 6 of Title 11 of the Administrative Code of the City of New York, which shall be the same as the end of the taxable year of the new consolidated group. Such report shall be filed on or before the 15th day of the third month following the end of its new taxable year.
(ii) Taxpayers leaving a Federal consolidated group.
(A) Short period precedes leaving group. Except as otherwise provided in subparagraph (iii) or (iv) of this paragraph, where a taxpayer ceases to be part of a Federal consolidated group, including a situation where a taxpayer leaves one Federal consolidated group to join another, the taxpayer must file a report under this paragraph covering the period from the beginning of its taxable year up to the date it leaves the group. Such report shall be filed on or before the 15th day of the third month following the close of its taxable year determined as if it had not ceased to be a member.
(B) Short period follows leaving group. Except as otherwise provided in subparagraph (iii) or (iv) of this paragraph, where a taxpayer ceases to be part of a Federal consolidated group, other than a situation where a taxpayer leaves one Federal consolidated group to join another, the taxpayer must file a short period report under this paragraph covering the period from the day it ceases to be a member of the group through the end of its taxable year determined as if it had not left the group. Such report shall be filed on or before the 15th day of the third month following the close of its taxable year determined as if it had not ceased to be a member.
(iii) Short period returns relating to IRC § 338 elections.
(A) Subject to the provisions of clause (B), if a taxpayer is an old target (within the meaning of Treas. Reg. § 1.338-2(c)(17)) any short period report required by 19 RCNY § 3-05(a)(2) shall cover the same period as is covered by the Federal report and shall be due on the due date for the Federal short period return set forth in Treas. Reg. § 1.338-10(a)(6), including any deemed extensions granted pursuant to Treas. Reg. § 1.338-10(a)(6)(ii)(B).
(B) This subparagraph shall not apply to an amended return described in Treas. Reg. § 1.338-10(a)(6)(ii)(D). An amended return for any such short period must be filed within 90 days after the taxpayer files an amended return with the United States Treasury Department. See paragraph (4) of subdivision (a) of this section.
(C) Subparagraph (i) of paragraph (3) of this subdivision shall not apply to a taxpayer for which an election is made pursuant to § 338 of the Internal Revenue Code, regardless of whether such election is deemed invalid pursuant to 19 RCNY § 3-03(b)(2)(vi), notwithstanding any deemed cessation of existence of such taxpayer pursuant to Treas. Reg. § 1.338(h)(10)-1(d)(4).
(iv) If a corporation required to file a short period report as provided in this subdivision becomes subject to tax under Subchapter 3 of Chapter 6 of Title 11 of the Administrative Code on a date other than the first day of such short period, the short period report shall begin on the date the corporation becomes subject to tax under such Subchapter. Except as provided in subparagraph (iii) of this subdivision, if a corporation required to file a short period report as provided in this subdivision ceases to be subject to tax under Subchapter 3 of Chapter 6 of Title 11 of the Administrative Code on the last day of such short period, the provisions of paragraph (3) of this subdivision shall apply in determining the due date for such short period report.
(e) Secrecy provisions.
(1) Secrecy of returns. (Administrative Code, § 11-682(1))
(i) Except in accordance with a proper judicial order or as otherwise provided by law, it is unlawful for any of the following to divulge or make known in any manner the amount of income or any particulars set forth or disclosed in any return required under the banking corporation tax law:
(A) the Commissioner of Finance;
(B) the Department of Finance of the City of New York;
(C) any officer or employee of the Department of Finance;
(D) any person who, pursuant to the banking corporation tax law,is permitted to inspect any return, or to whom any information contained in any return is furnished;
(E) any person engaged or retained by the Department of Finance on an independent contract basis; or
(F) any person who in any manner may acquire knowledge of the contents of a return filed pursuant to the banking corporation tax law.
(ii) The words "except in accordance with a proper judicial order or as otherwise provided by law" mean that a disclosure is permitted only in appropriate proceedings where the integrity of the return itself is attacked or defended as the main issue, and not merely as a collateral issue or where disclosure is explicitly permitted by statute.
(iii) The officers charged with the custody of returns are not required to produce any of them or evidence of anything contained in them in any action or proceeding in any court, except on behalf of the City of New York in an action or proceeding involving the collection of a tax due under Chapter 6 of Title 11 of the Administrative Code to which the City of New York is a party or a claimant, or on behalf of any party in an action or proceeding under the provisions of such Chapter 6 when the returns or facts shown thereby are directly involved in such action or proceeding, in any of which events the court may require the production of, and may admit in evidence, so much of said returns or of the facts shown thereby as are pertinent to the action or proceeding and no more.
(2) Secrecy exceptions. (Administrative Code, § 11-688(1), (3) and (4))
(i) In spite of the provisions relating to secrecy, the Commissioner of Finance may publish a copy or a summary of any determination or decision rendered after the formal hearing provided for in § 11-680 of the Administrative Code.
(ii) The provisions relating to secrecy do not prohibit:
(A) the delivery to a taxpayer or its duly authorized representative of a certified copy of any return filed by it;
(B) the publication of statistics so classified as to prevent the identification of particular returns;
(C) the inspection by the Corporation Counsel or other legal representative of the City of New York of the return of any taxpayer which brings an action or proceeding to set aside or review the tax based thereon or concerning which an action or proceeding has been recommended by the Commissioner of Finance or has been instituted by the Corporation Counsel;
(D) the inspection of the returns of any taxpayer by the duly designated officers or employees of the City of New York for purposes of audit under Chapter 6 of Title 11 of the Administrative Code; or
(E) the publication of the percentage of net income of any corporation which may be required to be allocated within New York City for purposes of the tax imposed by Subchapter 2 of Chapter 6 of Title 11 of the Administrative Code.
(iii) In spite of the provisions relating to secrecy –
(A) The Commissioner of Finance may permit the Secretary of the Treasury of the United States or his delegates, or the proper officer of New York State or any other state charged with tax administration, or the authorized representative or either such officer, to inspect returns filed under the banking corporation tax law or may furnish to them an abstract of a return or supply information concerning an item contained in a return, or disclosed by an investigation of tax liability under the banking corporation tax law. Such permission or information may be provided only if the laws of the United States or of such state grant substantially similar privileges to the Commissioner of Finance and such information is to be used for tax purposes only.
(B) The Commissioner of Finance may furnish to the Secretary of the Treasury of the United States or to the New York State Tax Commission or their delegates such returns filed under the banking corporation tax law and other tax information, as he may consider proper, for use in court actions or proceedings under the Internal Revenue Code or the New York State Tax Law, whether civil or criminal, where a written request for them has been made to the Commissioner of Finance by the Secretary of the Treasury or the New York State Tax Commission or their delegates, provided the laws of the United States or the laws of the State of New York grant substantially similar powers to the Secretary of the Treasury or the New York State Tax Commission or their delegates. Where the Commissioner of Finance has so authorized the use of returns or other tax information in such actions or proceedings, officers and employees of the Department of Finance may testify in such actions or proceedings in respect to the returns or other tax information.
(iv) In spite of the provisions relating to secrecy, the Commissioner of Finance, in his discretion, may permit or require any or all persons liable for any tax imposed under the banking corporation tax law to make payments on account of estimated tax and payment of any tax, penalty or interest imposed by the banking corporation tax law to banks, banking houses or trust companies designated by the Commissioner of Finance and to file declarations of estimated tax, applications for automatic extensions of time to file returns and returns with such banks, banking houses or trust companies as agents of the Commissioner of Finance, in lieu of making any such payment directly to the Commissioner of Finance. However, the Commissioner of Finance may designate only such banks, banking houses or trust companies as are depositories or financial agents of the City.
(3) Penalty for violation of secrecy provisions. (Administrative Code, §§ 11-688(2), 11-4017) Any person who violates the secrecy provisions is guilty of a misdemeanor. If the offender is an officer or employee of New York City or New York State and he willfully violates the secrecy provisions, he must be dismissed from office and may not hold any public office in the City or State for a period of five years after such dismissal.
Source: City of New York, Charter, Administrative Code and Rules (American Legal Publishing XML export, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/newyorkcity/latest/NYCrules/0-0-0-125491Fetched: 10/24/2026