Question

True and False.

21. John is a New York non-domiciliary who spends 200 days in New York during the tax year and does not maintain a permanent place of abode in New York. John is a New York Resident for tax purposes.

22. In determining the property percentage for purposes of allocating partnership income, real property only includes property that the partnership owns in New York State.

23. New York State can commence an income tax audit within 3 years from the later of the due date or filing date of the income tax return.

24. A New York non-domiciliary who spends 200 days in New York during the tax year and maintains a permanent place of abode in New York for the second half of the year only. The taxpayer is New York resident for tax purposes.

25. A New York retailer that ships taxable goods outside of New York has no obligation to collect New York sales tax.

26. A business is required to produce incriminating documents against an alleged tax crime if the documents are records that are required to be kept by the business.

27. The ability to control the color of paint a painter uses is indicative of employee, rather than independent contractor, status.

28. Upon the issuance of a Notice of Proposed Audit Change, the taxpayer has thirty (30) days to protest the changes with either the Bureau of Conciliation Mediation and Services (BCMS) or the Division of Tax Appeals (DTA) if fraud is asserted.

29. Sales tax is imposed on the entire bill if the bill includes charges for taxable and nontaxable services

30. Sales tax exemptions are construed in favor of the taxpayer while exceptions are construed broadly in favor of the government

31. Only NOLs incurred after 2014 can be carried back but never before 2015.

32. A foreign corporation that only sells goods to New York customers in New York through an independent business in New York does not have nexus for sales tax purposes.

33. All payroll taxes and sales tax are trust fund taxes and therefore, a responsible person will be personally liable for any outstanding payroll and sales tax liabilities.

34. An employee is any individual that you do not control or direct the results of the work, but you can control the means and methods of accomplishing the result.

35. A contractual designation, i.e., employee or independent contractor, is sufficient in and of itself, to determine a worker’s status as an independent contractor or employee.

36. A C-corporations are owned by a corporate shareholder and a partnership respectively. The corporate shareholder owns 55% of the C-corporation. Unless both corporations are engaged in a unitary business, they cannot elect to combine report.

37. Every corporation that is a general partner in a NY partnership has nexus with New York

38. The statute of limitations on assessments remains open indefinitely when there is a federal audit change and the taxpayer files an amended NY return to report such change.

39. A New York retailer that ships taxable goods outside of New York has no obligation to pay New York income tax.

40. A NY vendor that uses a fulfillment service in New York will not be subject to sales tax so long as the company providing the fulfillment services is unrelated to the NY Vendor.

41. NYS and NYC impose corporate tax on the highest of three tax bases.

42. Sales tax is due on an installment sale on the entire sales price of a sale at the time of the first payment, and not when each payment is received.

43. New York uses a 10 factor analysis to determine if a worker is an employee or independent contractor.

44. Apple sells Target 100 IPADs. Target intends to sell the IPADs to its customers. Apple does not need to collect sales tax from Apple since the sales are for resale.

45. A day spent as an inpatient in a New York hospital is considered a New York day for purposes of the statutory residence test.

46. Any physical contact with New York State by a foreign business will create sales tax nexus with New York.

47. A New York domiciliary terminates his residence in New York with the intention of never returning in 2014. He spends the following three years, 2015-2017 traveling among the capitals of Europe, residing for a few months in each, and finally returned to the United States to make a home in Florida. The taxpayer should file a Form IT 203- New York Non-Resident Income Tax Return for tax years 2015-2017.

48. Interest received by a resident individual on bonds of the State of

California must be added to his federal adjusted gross income in arriving at his New York adjusted gross income, because this interest is subject to the New York State personal income tax but not to federal income tax.

49. NY non-residents are allowed an income tax credit for taxes (1) paid to any other state or foreign jurisdiction that is (2) derived from the “other state” or “foreign jurisdiction”.

50. A taxpayer is domiciled in Connecticut but is a statutory resident of New York. The taxpayer realizes gains on the issuance of dividends from IBM. The taxpayer can take an income tax credit for taxes paid to Connecticut on his New York income tax return.

Answer 1

21 . FLASE

To qualify as new york resident for tax purpose:

1) domicile must be new york state.

2)domicile is not new york state but:

a) maintains permanent place of abode in new york state for more than 11 month of the year

AND

b)spend 184 days or more in new york state during tax year

both the condition in (2) should be fulfilled.

As John is Non domiciliary and doesnot maintain permanent place of abode in New york state.

He is not qualified as RESIDENT of new york state for tax purpose.