Bill Text: NY S07377 | 2011-2012 | General Assembly | Introduced
Bill Title: Relates to eliminating net operating loss carryback deductions.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2012-05-02 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S07377 Detail]
Download: New_York-2011-S07377-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
7377
I N S E N A T E
May 2, 2012
___________
Introduced by Sen. PARKER -- read twice and ordered printed, and when
printed to be committed to the Committee on Investigations and Govern-
ment Operations
AN ACT to amend the tax law, in relation to eliminating net operating
loss carryback deductions; and to repeal certain provisions of the tax
law relating thereto
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Section 659 of the tax law, as amended by chapter 577 of
2 the laws of 1997, is amended to read as follows:
3 S 659. Report of federal changes, corrections or disallowances. If
4 the amount of a taxpayer's federal taxable income, federal items of tax
5 preference, total taxable amount or ordinary income portion of a lump
6 sum distribution or includible gain of a trust reported on his federal
7 income tax return for any taxable year, or the amount of a taxpayer's
8 earned income credit or credit for employment-related expenses set forth
9 on such return, or the amount of any federal foreign tax credit affect-
10 ing the calculation of the credit for Canadian provincial taxes under
11 section six hundred twenty or six hundred twenty-A of this article, or
12 the amount of any claim of right adjustment, is changed or corrected by
13 the United States internal revenue service or other competent authority
14 or as the result of a renegotiation of a contract or subcontract with
15 the United States, or the amount an employer is required to deduct and
16 withhold from wages for federal income tax withholding purposes is
17 changed or corrected by such service or authority or if a taxpayer's
18 claim for credit or refund of federal income tax is disallowed in whole
19 or in part, the taxpayer or employer shall report such change or
20 correction or disallowance within ninety days after the final determi-
21 nation of such change, correction, renegotiation or disallowance, or as
22 otherwise required by the commissioner, and shall concede the accuracy
23 of such determination or state wherein it is erroneous. [The allowance
24 of a tentative carryback adjustment based upon a net operating loss
25 carryback pursuant to section sixty-four hundred eleven of the internal
26 revenue code shall be treated as a final determination for purposes of
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15708-01-2
S. 7377 2
1 this section.] Any taxpayer filing an amended federal income tax return
2 and any employer filing an amended federal return of income tax withheld
3 shall also file within ninety days thereafter an amended return under
4 this article, and shall give such information as the commissioner may
5 require. The commissioner may by regulation prescribe such exceptions
6 to the requirements of this section as he or she deems appropriate. For
7 purposes of this section, (i) the term "taxpayer" shall include a part-
8 nership having a resident partner or having any income derived from New
9 York sources, and a corporation with respect to which the taxable year
10 of such change, correction, disallowance or amendment is a year with
11 respect to which the election provided for in subsection (a) of section
12 six hundred sixty of this article is in effect, and (ii) the term
13 "federal income tax return" shall include the returns of income required
14 under sections six thousand thirty-one and six thousand thirty-seven of
15 the internal revenue code. In the case of such a corporation, such
16 report shall also include any change or correction of the taxes
17 described in paragraphs two and three of subsection (f) of section thir-
18 teen hundred sixty-six of the internal revenue code. Reports made under
19 this section by a partnership or corporation shall indicate the portion
20 of the change in each item of income, gain, loss or deduction (and, in
21 the case of a corporation, of each change in, or disallowance of a claim
22 for credit or refund of, a tax referred to in the preceding sentence)
23 allocable to each partner or shareholder and shall set forth such iden-
24 tifying information with respect to such partner or shareholder as may
25 be prescribed by the commissioner.
26 S 2. Subsection (a) of section 1087 of the tax law, as amended by
27 section 9 of part H of chapter 1 of the laws of 2003, is amended to read
28 as follows:
29 (a) General.--Claim for credit or refund of an overpayment of tax
30 under article nine or nine-A shall be filed by the taxpayer within (i)
31 three years from the time the return was filed, (ii) two years from the
32 time the tax was paid or (iii) in the case of any overpayment arising
33 from an erroneous denial by the department of environmental conservation
34 of a certification of completion pursuant to section 27-1419 of the
35 environmental conservation law, two years from the time a final determi-
36 nation to the effect that such denial was erroneous is made and is no
37 longer subject to judicial review, whichever of such periods expires the
38 latest, or if no return was filed, within two years from the time the
39 tax was paid. If the claim is filed within the three year period, the
40 amount of the credit or refund shall not exceed the portion of the tax
41 paid within the three years immediately preceding the filing of the
42 claim plus the period of any extension of time for filing the return. If
43 the claim is not filed within the three year period, but is filed within
44 the two year period, the amount of the credit or refund shall not exceed
45 the portion of the tax paid during the two years immediately preceding
46 the filing of the claim. In the case of a claim for credit or refund
47 filed within the period prescribed in paragraph (iii) of this
48 subsection, the amount of the credit or refund may exceed the portion of
49 the tax paid within the applicable period specified in the two imme-
50 diately preceding sentences, but only to the extent of the amount of the
51 overpayment attributable to the denial described in such paragraph
52 (iii). Except as otherwise provided in this section, if no claim is
53 filed, the amount of a credit or refund shall not exceed the amount
54 which would be allowable if a claim had been filed on the date the cred-
55 it or refund is allowed. For special restriction in a proceeding on a
56 claim for refund of tax paid pursuant to an assessment made as a result
S. 7377 3
1 of (i) [a net operating loss carryback or capital loss carryback, or
2 (ii)] an increase or decrease in federal taxable income or federal tax,
3 or [(iii)] (II) a federal change or correction or renegotiation, or
4 computation or recomputation of tax, which is treated in the same manner
5 as if it were a deficiency for federal income tax purposes, see para-
6 graph (7) of subsection (c) of section one thousand eighty-three.
7 S 3. Subsection (b) of section 1089 of the tax law, as amended by
8 chapter 55 of the laws of 1982, is amended to read as follows:
9 (b) Petition for redetermination of a deficiency.---Within ninety
10 days, or one hundred fifty days if the notice is addressed to a taxpayer
11 whose last known address is outside of the United States, after the
12 mailing of the notice of deficiency authorized by section one thousand
13 eighty-one, the taxpayer may file a petition with the tax commission for
14 a redetermination of the deficiency. Such petition may also assert a
15 claim for refund for the same taxable year or years, subject to the
16 limitations of subsection (g) of section one thousand eighty-seven. For
17 special restriction where the notice of deficiency relates to a proposed
18 assessment made as a result of (i) [a net operating loss carryback or
19 capital loss carryback, (ii)] an increase or decrease in federal taxable
20 income or federal tax, or [(iii)] (II) a federal change or correction or
21 renegotiation, or computation or recomputation of tax, which is treated
22 in the same manner as if it were a deficiency for federal income tax
23 purposes, see paragraph (7) of subsection (c) of section one thousand
24 eighty-three.
25 S 4. Subparagraph 3 of paragraph (a) and paragraph (d) of subdivision
26 8-b and paragraph (f) and subparagraph 3 of paragraph (g) of subdivision
27 9 of section 208 of the tax law are REPEALED.
28 S 4-a. Paragraph (e) of subdivision 13 of section 210 of the tax law
29 is REPEALED.
30 S 5. Subdivision 3 of section 211 of the tax law is REPEALED.
31 S 6. Subdivision (e) of section 213-b of the tax law is REPEALED.
32 S 7. Paragraph 3 of subdivision (a) of section 292 of the tax law is
33 REPEALED.
34 S 8. Paragraph 3 of subsection (a) of section 622 of the tax law is
35 REPEALED.
36 S 9. Paragraph 4 of subsection (b) of section 631 of the tax law is
37 REPEALED.
38 S 10. Subsection (b) of section 633 of the tax law is REPEALED.
39 S 11. Paragraph 3 of subsection (a) of section 636 of the tax law is
40 REPEALED.
41 S 12. Paragraph 4 of subsection (c) of section 683 of the tax law is
42 REPEALED.
43 S 13. Subsection (e) of section 684 of the tax law is REPEALED.
44 S 14. Subsection (d) of section 687 of the tax law is REPEALED.
45 S 15. Paragraph 4 of subsection (c) of section 1083 of the tax law is
46 REPEALED.
47 S 16. Subsection (e) of section 1084 of the tax law is REPEALED.
48 S 17. Subsection (a) of section 1087 of the tax law is REPEALED.
49 S 18. Subsection (d) of section 1088 of the tax law is REPEALED.
50 S 19. Subsection (k-1) of section 1453 of the tax law is REPEALED.
51 S 20. Paragraph 4 of subdivision (b) of section 1503 of the tax law is
52 REPEALED.
53 S 21. Paragraph 1 of subsection (e) of section 1515 of the tax law is
54 REPEALED.
55 S 22. This act shall take effect on the one hundred eightieth day
56 after it shall have become a law.
