February 2000

State Department Adds Tax Information Authorization Check Box

Concept Advocated by Society Committee

By Barry Horowitz, CPA, and Steven J. Eller, CPA

The New York State Department of Taxation and Finance recently added a new tax information authorization check box on some tax forms to permit tax preparers to communicate with the department about matters relating to certain returns.

The check box is a direct result of the continuing dialogue between the department and the NYSSCPA New York State, Municipal, and Local Taxation Committee, whose members advocated the concept.

State Tax Commissioner Arthur Roth attended a luncheon meeting on December 14 with the committee's subcommittee on state tax legislative relations. Roth said that the department likely will include the check box on additional tax forms in the future.

"The commissioner's CPA background undoubtedly enabled him to recognize the importance of this proposal to taxpayers and their preparers," committee member Stewart Buxbaum said.

Buxbaum joined committee chair Barry Horowitz and members Wayne Berkowitz, Steven Eller, and Warren Weinstock at the meeting. Regina Jaffe, the recently appointed director of field operations at the state tax department, attended with the commissioner.

Recommendations for Return Processing and Audits

At a previous meeting between the committee and the department, the commissioner asked for suggestions for improving the department's efficiencies in processing returns and in tax return audit matters. The committee recommended a number of legislative and regulatory proposals, including providing for an election out of the mandatory first installment of estimated tax for corporations, conforming the excise tax statute of limitations for both assessments and overpayments, and emphasizing the need for preparation of certain schedules to assist in the computation of New York net operating losses and passive losses for New York state nonresidents.

When appointed commissioner last year, Roth expressed an interest in strengthening relations between the Society and the department. He also served as luncheon speaker at FAE's annual New York State Tax Conference on December 15.

Watch future issues of The Trusted Professional for updates on other meetings between the Society and the department. *

Barry Horowitz is chair of the NYSSCPA New York State, Municipal, and Local Taxation Committee and a partner at Eisner & Lubin LLP. Steven J. Eller is a member of the committee and a partner at Buchbinder Tunick & Co. LLP.