§ 11-31 Adjustment of Entire Net Income to Period Covered By Report.
RCNY § 11-31
(a)If the entire net income required to be reported under Subchapter 2 of Chapter 6 of Title 11 is for a period other than the period covered by the taxpayer's Federal income tax return, its Federal taxable income is first adjusted in the manner set forth in 19 RCNY § 11-27, then divided by the number of calendar months or major parts thereof covered by the Federal income tax return, and the result multiplied by the number of calendar months or major parts thereof covered by the report under Subchapter 2 of Chapter 6 of Title 11. Example: A corporation was organized in 1959 under the laws of a State other than New York, in which other state it carried on its business until March 1, 1966, when it began to do business in New York City. It filed its return for Federal income tax purposes for the calendar year 1966, wherein its taxable income required to be reported was $70,000. In computing its entire net income for the period from March 1, 1966 to December 31, 1966, its Federal taxable income for the calendar year 1966 ($70,000) is first adjusted to conform to entire net income as defined in Subchapter 2 of Chapter 6 of Title 11, and then divided by 12 and the result multiplied by 10.
(b)The method of computing entire net income set forth in the above example is, under similar circumstances, also applicable to corporations reporting on a fiscal year basis for Federal income tax purposes.
(c)However, if in the opinion of the Commissioner of Finance this method does not properly reflect the taxpayer's net income for franchise tax purposes during the period covered by its report, the Commissioner may determine entire net income solely on the basis of the taxpayer's income during such period.
