Transcript Hornell-Corning-Steuben County Empire Zone

New York State
Department of Taxation and Finance
Coordinators Training
[email protected]
716-855-5302
www.tax.ny.gov
Private and Confidential
 In accordance with Internal Revenue Service Taxpayers
utilizing volunteer program services provide personal
information to the volunteers, such as names, addresses,
social security numbers, birth dates, and bank account
information.
 Therefore, partners and volunteers must keep the
information confidential and protect it from unauthorized
individuals and misuse.
NYS Tax Contact Information
 Tax Practitioners Hot Line - (518) 457-5451
 Forms Control Unit phone number: (518) 244-1911
• TP-3 Forms Order (Can order TP-300 and TP-301)
• TP -3 If you want to make a change, cross out the amount we
have listed and enter the new amount.
• [email protected]
 E-file Helpdesk line – (518) 457-6387
 Online Tax Center Assistance (518) 485-7884
NYS Income Tax Information
 Personal Income Tax Information 518-457-5181
 1099-G information 518-457-5181
 Personal income tax refund (518) 457-5149
 Disagree with Personal Income Tax Refund 518-485-6549
 Child Support Helpline 1-888-208-4485 (noncustodial EITC is denied)
 www.tax.ny.gov/online/ind.htm
• Refund Status
• Apply for Extension
• Form 1099-G
Resources Available for Volunteers
 TP-301 NYS Intake Sheet
 TP-300 Quick Reference Guide
 DTF-440 (debit card trifold)
 URL page with training information for volunteers
http://www.tax.ny.gov/volunteer
 Addendum to the IRS publication 4491-W (comprehensive
problems and exercise book)
 Publication 84- Handbook for e-filers of 2011 PIT Returns.
 Publication 36 – General information for Senior Citizens and
Retired Persons
Review of 2010 – Most Common Errors
 Amount of NYS withholding reported on return not equal to amount
reported on wage and tax statements (129)
 Amount of public employee 414(h) retirement contribution, subject to
NYS tax, reported on return not equal to amount reported on
Form(s) W-2. (103)
 Incomplete or incorrect Student Information on form IT-272. (461)
 Required information missing for qualifying person reported on Form
IT-216. (376)
 Withholding (NY State, NY City, or Yonkers) should not be greater
than or equal to wages. Check your W-2. If not input error, call the
Tax Department (518) 457-6387. (502)
 Routing number is invalid.(904)

Invalid value entered.(E2 Main forms) (017)
Site Reviews
 Conducted 96 statewide site review and accuracy rate 97%
 Problems were found in the following areas
• Pensions
• 529 college savings plans and 1099Qs
• IT 272, Education credit (new requirements)
• Invalid EIN# on the 1099UI
• Federal rejects / State accepts
Site Reviews
 Only about 1/2 of volunteers were familiar with the URL page
 More sites are using the intake sheet
 All paper forms that they requested were timely
 Problems with the ambiguity of the rejection code
 Problems of submission of state only
 Problems with the college tuition credit and unemployment insurance
 Need information on how the set up an IPA when the taxpayer owes NYS.
 Request more pension information and more IT-214 information for training.
 Recommend 4491W exercises come out earlier
 Recommend state tax forms be released earlier.
 Recommend State change the requirement for submitting amended returns
Changes to Personal Income Tax Returns
 Form IT-150 - Form IT-150, Resident Income Tax Return
(short form), has been discontinued
 Date of Birth - Taxpayers must now enter their date of birth
(and their spouse’s date of birth, if applicable) on their
primary returns.
 Yonkers Surcharge - Effective for tax year 2011, the rate
of the Yonkers resident income tax surcharge has been
increased from 10% to 15% of the net state tax.
Changes to Personal Income Tax Refunds
 Three options for refund: direct deposit, paper check, or DEBIT CARD
 DEBIT CARDS –a new way for New York State residents to receive their
New York State income state tax refund.
 DEBIT CARDS benefit taxpayers by reducing the Departments cost that
typically associated with issuing paper checks (printing, issuing, and
processing).
Who would benefit from the Debit Card?
 Anyone currently not using the direct deposit method to
receive their New York State personal income tax refund;
 “Unbanked” or “Underbanked” who pay to cash checks; and
 All taxpayers who enjoy the security and ease of use of
debit cards for bill pay and making purchases.
Why should a resident select the Card?
It’s secure
Cards reported lost/stolen will be replaced quickly. (Refund check
replacement can take weeks) Cardholders are protected against all
unauthorized transactions.
It’s cost-efficient
With a capped 1.82% of the face value of the check, costs of cashing a
check can become quite high especially as refunds get larger.
It’s easier-to-use
Use at the point-of-sale with millions of merchants. Use at thousands of
ATMs in New York and throughout the country for free or for nominal fees.
Lottery Prizes Applied Against Tax Liabilities
 A lottery prize in excess of $600 can be applied against a
New York State Tax Liability.
 Only the names of those owing tax liabilities that are
warranted, subject to a judgment, or legally fixed, final, and
not subject to further administrative or judicial review, will
be submitted to the Director of the Lottery.
Offer in Compromise Reform
 The new Tax Law provisions expand our ability to accept Offers in
Compromise to include taxpayers, when payment in full would
create undue economic hardship, in addition to those taxpayers who
are insolvent or bankrupt.
 The new program is limited to taxes owed under the Personal
Income Tax and business taxes for which a person can be held
personally responsible.
 The Offer in Compromise program allows qualifying, financially
distressed taxpayers the opportunity to put overwhelming liabilities
behind them by paying a reasonable portion of their tax debt.
 TSB-M-11(9)C,(9)I,(10)M,(2)MCTMT,(2)R,(14)S- Changes to the
Offer in Compromise Program
Offer in Compromise Reform
 Generally, undue economic hardship occurs when a
taxpayer is unable to pay reasonable basic living expenses.
 Basic living expenses are those that provide for health,
welfare, and production of income for taxpayer or the
taxpayer’s family.
 In addition to basic living expenses, we will consider other
factors that can impact and individual’s financial condition.
 Undue economic hardship, does not include the inability to
maintain an affluent or luxurious lifestyle.
Marriage Equality Act
 The Marriage Equality Act (Act) took effect on July 24, 2011, and
provides that all marriages, whether between same-sex couples or
different-sex couples, will be treated equally under the laws of
New York.
 The Act amends New York law to recognize all legally performed
marriages between same-sex and different-sex couples, whether
or not the marriage took place in New York.
 TSB-M11(8)C, (8)I,(7)M,(1)MCTMT,(1)R,(12)S, - The Marriage
Equality Act
 TSB-M-11(8)M – Implementation of the Marriage Equality Act
Related to the New York State Estate Tax
Marriage Equality Act
 In accordance with the Marriage Equality Act, you must file your
New York return(s) using a married filing status even though
your marital status isn't recognized for federal purposes.
 The Federal Defense of Marriage Act of 1996 defined marriage
as "a legal union between one man and one woman as husband
and wife, and the word 'spouse' refers only to a person of the
opposite sex who is a husband or a wife.” Therefore, the IRS
does not follow state law for recognizing same-sex marriages
and same-sex married couples cannot file their federal return
using a married filing status.
Marriage Equality Act for Personal Income Taxes
 Because the law only applies starting for tax year 2011, you can't
amend a prior year returns.
 To complete your New York Personal Income Tax Return you must:
• Recompute your federal income tax return (including all credit
forms, schedules, and other attachments) using a married filing
status.
• Don't submit this federal married filing status return to the IRS.
• Use it only to complete your New York return and keep it with
your tax documents.
• You must enter special condition code M3
Marriage Equality Act
 The Act applies to all taxes administered by the Tax Department.
 As a result, any references in the Tax Law or department documents to:
• spouse or married individual includes a person in a marriage with a
same-sex spouse
• husband, wife, and spouse should be read as gender neutral to
reflect both different-sex and same-sex couples
• marriage also includes a marriage between same-sex spouses
For additional information visit:
http://www.tax.ny.gov/pit/marriage_equality_act.htm
Statute of Limitations to Collect Tax Liabilities
 The Tax Law was amended to revise the 20-year statute of
limitations on the Tax Department’s time to collect tax liabilities
that have been assessed and for which a notice and demand
has been issued.
 This statute of limitations is applicable to all taxes, and any
special assessments, fees, interest, additions to tax, penalties,
or other impositions administered by the tax department.
 TSB-M- 11(10)C,(10)I,(11)M,(3)MCTMT,(4)R,(15)S
20-Year Statute of Limitations to Collect Tax Liabilities
Statute of Limitations to Collect Tax Liabilities
 The tax liability will not be enforceable and will be
extinguished after 20 years from the first date a warrant
could be filed by the tax department.
 A payment by the taxpayer or an acknowledgment of an
indebtedness in writing by the taxpayer no longer extends
the 20-year time limit as under prior law.
 This new law is effective August 17, 2011 regardless of
when the liability was first assessed.
Office or Real Property Tax Services Merge with
Department of Taxation and Finance
 STAR exemption - New $500,000 Income Limit for Basic STAR
Property Tax Exemption.
 Taxpayers can renounce a previously granted exemption.
 Limits the STAR real property tax growth to 2% annually.
 Department establishes means to transfers of various real
property tax documents electronically.
Due Date of the 2011 personal income tax return
 April 15, 2012 falls on a Sunday
 Monday April 16th is Emancipation Day in Washington D.C.
so the deadline for filing a personal income tax return has
been extended.
 NYS will conform with the IRS and the personal income tax
return will be due April 17, 2012
E-file Your Return
 Most taxpayers who use software to prepare returns must e-file.
 If their software supports the e-filing of your return, they must e-file.
 If they are required to e-file but file on paper instead, they may be
subject to a $25 penalty.
 Self-filer mandate was enacted as part of the 2011 legislation.
 The Self-filer mandate does NOT pertain to returns prepared at a
volunteer site either by the volunteer or through Free Assisted
Self-Service Preparation (FAST).
Volunteers Credits to Prepare
 IT-213 – Empire Child Tax Credit
 IT-214 – Real Property Tax Credit
 IT-215/IT-209 – Earned income Tax Credits
 IT-216 – Child Care and Dependent Credit
 IT-258 – Nursing Home Credit
 IT-245 – Volunteer Fire Fighter/Ambulance Worker
 IT-II2R – Resident Tax Credit
 PLUS – Disability Income Exclusion form IT-221
 Pension Exclusion chart to be added to URL page
www.nystax.gov
WWW.TAX.NY.GOV
Transmitting New York State return(s)
 You must transmit all New York State returns through the
IRS Federal/State e-file program. Your state return is
usually transmitted with your federal return.
 You may also transmit your return using the "State only"
option if your software supports it. If your return passes the
validation and checks, the IRS posts it for our Department
to retrieve.
Returns Accepted for E-filing
IT-201
IT-213
IT-258
IT-201-ATT
IT-213-ATT
IT-272
IT-203
IT-214
IT-370
IT-203-ATT
IT-215
IT-2105.9
IT-112-C
IT-216
IT-112-R
IT-245
IT-209
IT-249
See IT-201 Instructions or Publication 84 for a
complete list of forms accepted for e-filing
Acknowledgements of an E-filed Return
 Acceptance by our Department - We will provide
acknowledgments for every return that we receive in the correct
format.
 Rejection by our Department - It is the Electronic Return
Originators (EROs) responsibility to inform the taxpayers if their
return is rejected if the preparer is unable to correct and resubmit.
 Rejection acknowledgments - A return may have multiple
unrelated errors; we provide only one error code at a time.
Each rejection will include an error code that identifies the
first error encountered that caused the rejection.
Timing of Acknowledgements of an E-filed Return
 Timing of Acknowledgments
 During the e-file period:
• Returns sent to the IRS on Monday through Sunday (except
holidays) will be processed on the same day and
acknowledgment files will be transmitted.
• Returns sent to the IRS after 11:00 A.M. and on holidays will
be acknowledged the following business day.
• Contact the E-file helpdesk if you don’t receive an
acknowledgment within three business days after the IRS
acknowledgment
Perfection Period for E-filed Returns
 Law enacted in 2010 authorized the Commissioner to
establish reasonable correction periods and resubmission
procedures for electronic tax filing and payments that were
initially rejected after they were timely filed.
 This applies to electronic returns and payments made for
tax years beginning on or after December 31, 2010.
USING TAX WISE
 MUST Enter on NYS Tax Form:
• School District Name
• School District Code
• County of Resident
 Line 59 – NYS Sales Tax must have an entry
 IT214 and NYC-210 are the only forms we accept as stand
alone. However, if e-filing must be accompanied by a
person income tax return – IT-201 or IT-203.
Tax Credits automatically calculated on New York State
software when calculated on IRS return
 Household Credit (based on Federal AGI)
• Married $32,000 or less
• Single $28,000 or less
 IT-213 - Empire Child Tax Credit – From federal child tax credit
 IT-215 – Earned income tax credit – From federal earned
income tax credit
 IT-216 – Child care and Dependent Credit – From federal 2441
Addition adjustment on NYS return
 The 414H and amount must be entered on line 14 on the W-2.
(taxwise has confirmed that for tax year 2011, “SUB” is not
required for an add back on the NYS return).
 IF NYC IRC 125 must be entered on box 14 of the W-2
 Other Addition modifications must be included on proper
addition lines of the IT-201
Subtraction adjustments on NYS return
 Must be entered on appropriate line of NYS return
 Income tax refund is automatically subtracted
 Social security income is automatically subtracted
 Contributions to a NYS 529 College Savings Plan (1099-Q)
 Pensions - Must indicate on 1099R if the pensions is from
NYS and local government of if private pension entitled to
exclusion if taxpayer reaches age 59 & ½.
E-file Signature Requirements
 There is no need to mail Forms W-2 or other supporting documents
to the Tax Department when a return is filed electronically.
 Volunteers are required to have the taxpayer sign the TR-579-IT for
each return that is e-filed.
 The TR-579-IT should be attached to the copy of the taxpayer’s
personal income tax return.
 Volunteers should:
• enter their SITE ID number where requesting Federal ID number
or SS number
• Name of Site where requesting name of practitioner.
If Using the Taxwise Software and a Paper Return Must be
Filed what you need to know
 The NYS forms IT-2, IT-1099-R and IT-1099-UI are for paper
filing only; if software is used to prepare the return and the
return is NOT E-filed, print IT-2 for all W-2’s.
 Print IT-1099R if there is NYS withholding tax on the pensions.
 Print IT-1099 UI if there is withholding on unemployment
insurance
Payment Options on E-filing
 Electronic Funds Transfer (EFT) from a checking or savings account.
 Credit Card
 Mail in a check with Form IT-201-V:
NYS PERSONAL INCOME TAX
PROCESSING CENTER
PO BOX 4124
BINGHAMTON NY 13902-4124
Estimated taxes
 You are not required to fill estimated taxes if you expect to owe less
than $300 of New York State, city of New York, or city of Yonkers
income tax after deducting tax withheld and credits that you are
entitled to claim.
 Payment - April 15, June 15, Sept 15 and Jan 15
 NYS does not provide statement of accounts and does not provide
vouchers (IT-2105V).
 The easiest and fastest way for individuals to make estimated tax
payments is through our Online Service Center. Individuals can
also view and reconcile their estimated tax payments electronically.
Online Service Center
 Press release of October 7:
New York State Tax Department Announces Record
Number of Businesses Using Online Services:
• More than one million Online Service account holders and
• More than half (519,000) are business accounts.
 In the past year alone, our online services have reduced our
cost and saved taxpayers more than $8 million dollars.
Creating an online service account
 Create an online account and log in to:
• Pay estimated income and manage your estimated tax
account
• View and pay tax bills
• Respond to a notice
• Report change of address
• Receive E-mail alerts
• Videos and Demos available
Electronic Communication/email
 Available to Online Service account holders
 Sales tax vendors - now
 Corporations - now
 Individuals - winter 2011
 Filing and payment reminders
 Email alerts available
 General information
Modernized E-file with IRS (PIT MEF)
 Target Implementation- July 2012
 Features:
• PDF Attachments
• Multiple Years (Original Returns)
January 2013 – TY 2012, TY 2011
January 2014 – TY 2013, TY 2012, TY 2011
 Duplicate Returns Accepted
–
Reject if ACH information exactly same
Modernized E-file with IRS (PIT MEF)

Standalone Returns- January 2013
•
IT-214
•
NYC-210

SSN/Name Validation

Amended Returns- January 2014
Free e-filing
 NOTE: Free e-filing available by visiting
• http://www.tax.ny.gov/pit/efile/freefile_eligibility1.htm
• Qualifications for free e-filing vary by software providers.
Generally, if a taxpayer qualifies for EITC, or under the age
of 25, or over 65, or active military or Federal adjusted
gross income under $58,000.
Check our Website for the software providers that
support free e-filing for both the federal (IRS) and NYS
personal Income tax return.
QUESTIONS?
THANK YOU
The material included in this slide show is intended only to
highlight NYS tax issues as of the date presented. For more
comprehensive information, please refer to our TSB-M’s, Forms,
Instructions, Bulletins, and Publications.