Tax News

CCH (cch.taxgroup.com) reports:

The New York Department of Taxation and Finance has issued a supplemental corporate franchise tax memorandum providing for an alternative method by which members of a federal consolidated group may fulfill the requirement to file New York tax returns with federal tax shelter disclosure statements attached. To file a consolidated disclosure, the New York filer that has been designated by the group members as the responsible corporation must do the following:
-- file with its New York return one copy of all disclosure information required by the state that applies to activities of the New York filers of the federal consolidated group;
-- write "Consolidated Disclosure" at the top of its completed Form DTF-686, Tax Shelter Reportable Transactions;
-- sign the waiver of Tax Law secrecy requirements on Form DTF-686;
-- attach a list of the names and tax identification numbers of the other New York state filers on whose behalf the consolidated disclosure is being made; and
-- notify the filers that such disclosure has been filed.
The other New York state filing members of the federal consolidated group may then file abbreviated disclosure statements, as follows:
-- write "Consolidated Disclosure" at the top of their Form DTF-686;
-- complete the information preceding lines 1 and 2 of Form DTF-686;
-- instead of completing lines 1 and 2 of Form DTF-686, enter below line 2 the name and tax identification number of the New York state filer that has filed the required federal disclosure with the state; and
-- sign the waiver of Tax Law secrecy requirements on Form DTF-686.
The memorandum also provides additional information regarding the disclosure requirements with respect to members of New York state combined returns.
TSB-M-07(1)C , Technical Services Bureau, Taxpayer Services Division, New York Department of Taxation and Finance, January 11, 2007, ¶405-584
Other References:
Explanations at ¶89-176