Bill Text: NY S04879 | 2019-2020 | General Assembly | Introduced
Bill Title: Relates to eliminating net operating loss carryback deductions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-01-08 - REFERRED TO BUDGET AND REVENUE [S04879 Detail]
Download: New_York-2019-S04879-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4879 2019-2020 Regular Sessions IN SENATE March 28, 2019 ___________ Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue 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 section 8 of part 2 J of chapter 59 of the laws of 2014, is amended to read as follows: 3 § 659. Report of federal changes, corrections or disallowances. If the 4 amount of a taxpayer's federal taxable income, total taxable amount or 5 ordinary income portion of a lump sum distribution or includible gain of 6 a trust reported on his federal income tax return for any taxable year, 7 or the amount of a taxpayer's earned income credit or credit for employ- 8 ment-related expenses set forth on such return, or the amount of any 9 federal foreign tax credit affecting the calculation of the credit for 10 Canadian provincial taxes under section six hundred twenty or six 11 hundred twenty-A of this article, or the amount of any claim of right 12 adjustment, is changed or corrected by the United States internal reven- 13 ue service or other competent authority or as the result of a renegoti- 14 ation of a contract or subcontract with the United States, or the amount 15 an employer is required to deduct and withhold from wages for federal 16 income tax withholding purposes is changed or corrected by such service 17 or authority or if a taxpayer's claim for credit or refund of federal 18 income tax is disallowed in whole or in part, the taxpayer or employer 19 shall report such change or correction or disallowance within ninety 20 days after the final determination of such change, correction, renegoti- 21 ation or disallowance, or as otherwise required by the commissioner, and 22 shall concede the accuracy of such determination or state wherein it is 23 erroneous. [The allowance of a tentative carryback adjustment based upon24a net operating loss carryback pursuant to section sixty-four hundredEXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD10705-01-9S. 4879 2 1eleven of the internal revenue code shall be treated as a final determi-2nation for purposes of this section.] Any taxpayer filing an amended 3 federal income tax return and any employer filing an amended federal 4 return of income tax withheld shall also file within ninety days there- 5 after an amended return under this article, and shall give such informa- 6 tion as the commissioner may require. The commissioner may by regulation 7 prescribe such exceptions to the requirements of this section as he or 8 she deems appropriate. For purposes of this section, (i) the term 9 "taxpayer" shall include a partnership having a resident partner or 10 having any income derived from New York sources, and a corporation with 11 respect to which the taxable year of such change, correction, disallow- 12 ance or amendment is a year with respect to which the election provided 13 for in subsection (a) of section six hundred sixty of this article is in 14 effect, and (ii) the term "federal income tax return" shall include the 15 returns of income required under sections six thousand thirty-one and 16 six thousand thirty-seven of the internal revenue code. In the case of 17 such a corporation, such report shall also include any change or 18 correction of the taxes described in paragraphs two and three of 19 subsection (f) of section thirteen hundred sixty-six of the internal 20 revenue code. Reports made under this section by a partnership or corpo- 21 ration shall indicate the portion of the change in each item of income, 22 gain, loss or deduction (and, in the case of a corporation, of each 23 change in, or disallowance of a claim for credit or refund of, a tax 24 referred to in the preceding sentence) allocable to each partner or 25 shareholder and shall set forth such identifying information with 26 respect to such partner or shareholder as may be prescribed by the 27 commissioner. 28 § 2. Subsection (a) of section 1087 of the tax law, as amended by 29 section 9 of part H of chapter 1 of the laws of 2003, is amended to read 30 as follows: 31 (a) General.--Claim for credit or refund of an overpayment of tax 32 under article nine or nine-A shall be filed by the taxpayer within (i) 33 three years from the time the return was filed, (ii) two years from the 34 time the tax was paid or (iii) in the case of any overpayment arising 35 from an erroneous denial by the department of environmental conservation 36 of a certification of completion pursuant to section 27-1419 of the 37 environmental conservation law, two years from the time a final determi- 38 nation to the effect that such denial was erroneous is made and is no 39 longer subject to judicial review, whichever of such periods expires the 40 latest, or if no return was filed, within two years from the time the 41 tax was paid. If the claim is filed within the three year period, the 42 amount of the credit or refund shall not exceed the portion of the tax 43 paid within the three years immediately preceding the filing of the 44 claim plus the period of any extension of time for filing the return. If 45 the claim is not filed within the three year period, but is filed within 46 the two year period, the amount of the credit or refund shall not exceed 47 the portion of the tax paid during the two years immediately preceding 48 the filing of the claim. In the case of a claim for credit or refund 49 filed within the period prescribed in paragraph (iii) of this 50 subsection, the amount of the credit or refund may exceed the portion of 51 the tax paid within the applicable period specified in the two imme- 52 diately preceding sentences, but only to the extent of the amount of the 53 overpayment attributable to the denial described in such paragraph 54 (iii). Except as otherwise provided in this section, if no claim is 55 filed, the amount of a credit or refund shall not exceed the amount 56 which would be allowable if a claim had been filed on the date the cred-S. 4879 3 1 it or refund is allowed. For special restriction in a proceeding on a 2 claim for refund of tax paid pursuant to an assessment made as a result 3 of (i) [a net operating loss carryback or capital loss carryback, or4(ii)] an increase or decrease in federal taxable income or federal tax, 5 or [(iii)] (ii) a federal change or correction or renegotiation, or 6 computation or recomputation of tax, which is treated in the same manner 7 as if it were a deficiency for federal income tax purposes, see para- 8 graph [(7)] seven of subsection (c) of section one thousand eighty- 9 three. 10 § 3. Subsection (b) of section 1089 of the tax law, as amended by 11 chapter 55 of the laws of 1982, is amended to read as follows: 12 (b) Petition for redetermination of a deficiency.---Within ninety 13 days, or one hundred fifty days if the notice is addressed to a taxpayer 14 whose last known address is outside of the United States, after the 15 mailing of the notice of deficiency authorized by section one thousand 16 eighty-one, the taxpayer may file a petition with the tax commission for 17 a redetermination of the deficiency. Such petition may also assert a 18 claim for refund for the same taxable year or years, subject to the 19 limitations of subsection (g) of section one thousand eighty-seven. For 20 special restriction where the notice of deficiency relates to a proposed 21 assessment made as a result of (i) [a net operating loss carryback or22capital loss carryback, (ii)] an increase or decrease in federal taxable 23 income or federal tax, or [(iii)] (ii) a federal change or correction or 24 renegotiation, or computation or recomputation of tax, which is treated 25 in the same manner as if it were a deficiency for federal income tax 26 purposes, see paragraph [(7)] seven of subsection (c) of section one 27 thousand eighty-three. 28 § 4. Subdivision 3 of section 211 of the tax law is REPEALED. 29 § 5. Subdivision (e) of section 213-b of the tax law is REPEALED. 30 § 6. Paragraph 3 of subdivision (a) of section 292 of the tax law is 31 REPEALED. 32 § 7. Paragraph 4 of subsection (b) of section 631 of the tax law is 33 REPEALED. 34 § 8. Subsection (b) of section 633 of the tax law is REPEALED. 35 § 9. Paragraph 4 of subsection (c) of section 683 of the tax law is 36 REPEALED. 37 § 10. Subsection (e) of section 684 of the tax law is REPEALED. 38 § 11. Subsection (d) of section 687 of the tax law is REPEALED. 39 § 12. Paragraph 4 of subsection (c) of section 1083 of the tax law is 40 REPEALED. 41 § 13. Subsection (e) of section 1084 of the tax law is REPEALED. 42 § 14. Subsection (d) of section 1088 of the tax law is REPEALED. 43 § 15. Paragraph 4 of subdivision (b) of section 1503 of the tax law is 44 REPEALED. 45 § 16. Paragraph 1 of subdivision (e) of section 1515 of the tax law is 46 REPEALED. 47 § 17. This act shall take effect on the one hundred eightieth day 48 after it shall have become a law.