§ 3-05 Returns.
RCNY § 3-05
(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.
(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.
(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.
(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.
(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).
(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.
(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.
(e)Secrecy provisions.
