April 20, 2009
The New York State Department of Taxation and Finance issued guidance on April 15 regarding legislative changes made to the Empire Zones Program in the 2009 enacted budget.
The guidance states that a business must obtain the EZ retention certificate to receive any EZ benefits for tax years beginning on or after January 1, 2008. Specifically, any claim for an EZ credit must include a copy of the retention certificate. In addition, pass-through entities such as partnerships, S corporations, and LLCs must provide a copy of the retention certificate to each partner, shareholder, or member so they can attach the certificate to their respective returns.
If any claim is filed without the EZ retention certificate attached, the credit will be denied, and the return will be processed without the benefit of the credit(s). Interest will be charged on any resulting underpayment of tax. This applies to all claims for tax years beginning on or after January 1, 2008, regardless of when those claims are filed.
Taxpayers who have already filed a tax return for a tax year that began on or after January 1, 2008, claiming new or carryover EZ credits without an EZ retention certificate, must file an amended return with an EZ retention certificate attached.
Should you have any questions concerning this alert, please contact the Harris Beach attorney with whom you regularly work.
This Legal Alert provides a brief analysis on matters related to the Empire Zones Program. This alert does not purport to be a substitute for advice of counsel on specific matters.
Harris Beach has offices throughout New York state, including Albany, Buffalo, Ithaca, New York City, Niagara Falls, Rochester, Saratoga Springs, Syracuse and Yonkers, as well as Newark, New Jersey.
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