April 2000

Filing for Commuter Tax Refunds

The NYSSCPA contacted the New York State Department of Taxation and Finance to determine how the department plans to address refunds of the commuter tax for out-of-state residents. Holly Chamberlin, special assistant to Commissioner Arthur Roth, said the department is poised and ready to provide guidance to taxpayers and tax preparers affected by the recent Court of Appeals decision.

Upon receipt of the final order from the court, the department will mail copies of a special amended return to the affected taxpayers. The department also will make this form and instructions available through its fax-on-demand service and its website, www.tax.state.ny.us. Chamberlin said the department will process these amended returns on an expedited basis.

For those taxpayers who have not yet filed their returns, they should file the regular form IT-203 as if the taxpayer is still a resident of New York, follow the form's instructions, and the calculations will result in the correct amount.

Regarding commuter taxes collected for 2000, the department will instruct employers to stop withholding this tax immediately. Taxpayers can either file a request for refund or calculate the potential refund on their 2000 tax return.

Chamberlin said that this refund is not an automatic pay out. Taxpayers must take affirmative steps to obtain it--by either filing IT-203, the amended return, or an extension. *