The New York City Department of Finance has announced that there has been a delay in producing new tax forms for New York City business owners. As a result of the delay, business owners now have an additional six months to file their taxes. Based on the new changes to New York State corporate tax law that were enacted on April 13, 2015, the new forms were expected to come in by March 15, 2016. The Finance Department reported that changes in tax-filing requirements have been “an enormous undertaking.”
Changes in the New York State corporate tax law include lowering the tax rate for manufacturers with net incomes under $10 million to 4.425 percent from 8.85 percent. For non-manufacturers with net incomes under $1 million, the tax rate dropped to 6.5 percent from 8.85 percent, thanks to the new tax law. These tax cuts are expected to benefit 45,000 small businesses in New York City.
Finance Commissioner Jacques Jiha said most of the new tax forms should be ready for electronic filing next month, but urged the companies to file for an extension in order to prevent any glitches. He also told them not to wait until the last minute to file. In the meantime, the city will review the filing situation for each taxpayer so that they are not unfairly penalized for underpayment.
Additionally, there have been Federal taxation amendments for C and S corporations. Effective with the 2016 tax year (filing in 2017), the new filing deadline for C corporations has been extended by one month to the 15th day of the fourth month (April 15 for a corporation with a calendar year) after the closing of the corporation’s fiscal year. For partnership returns and corporate returns (with some exceptions), the new law now gives these companies a six-month extension. C corporations with fiscal years ending on June 30 will be given an extra ten years to make this change, as opposed to January 1, 2016. Additionally, there are several other changes for S corporations, Foreign Trust Reporting, and extensions for other tax forms. Since each form is different, Mr. Abrams advises both C and S corporations to keep track of the different filing deadlines.
If you have any questions about your Federal or New York State business taxes or filing requirements, contact William Abrams, the partner-in-charge of AGMB’s business management, corporate and securities law, and tax law practices. He has appeared on national and local news programs commenting on a broad range of tax and legal issues, has been quoted in publications such as Forbes, The Los Angeles Times, and The Chicago Tribune and has published articles in The Journal of Accountancy. Contact Mr. Abrams at 212-201-1172 or e-mail him at firstname.lastname@example.org. For more information, visit www.agmblaw.com.