STATE AND LOCAL TAXATION

July 2000

EXPEDITED 2000 REFUNDS OF NEW YORK CITY NONRESIDENT TAX WITHHOLDING

By Neil Becourtney, CPA, J.H. Cohn, LLP

In response to the April 2000 decision by the New York State Court of Appeals that effectively eliminated the New York City nonresident earnings tax for New York State nonresidents, the New York State Department of Taxation and Finance recently issued Form NYC-203-R, Claim for Refund of New York City Nonresident Earnings Tax Withheld for 2000.

Shortly after the court handed down its decision in early April, all employers were instructed to cease withholding the tax from all employee wages. Taxpayers that had New York City nonresident earnings tax withheld from their wages in 2000 seeking to obtain an early refund of taxes should file Form NYC-203-R by December 31, 2000, but filing the form is not mandatory. Taxpayers that choose not to file it can claim their New York City nonresident tax withholding on their 2000 Form IT-203.

Form NYC-203-R requires each employer's name and address, wages subject to New York City nonresident earnings tax withholding, and amount withheld. Taxpayers are not required to attach any documentation to the one-page form, such as a year-to-date pay stub. Separate columns are provided for taxpayer and spouse, thereby making it easier for married couples to file a claim for refund. The form must be signed by both the taxpayer and a paid preparer if applicable. It can be obtained from the New York State Department of Taxation and Finance at (800) 462-8100 or www.tax.state.ny.us.*

State and Local Editor:
Barry H. Horowitz, CPA
Eisner & Lubin LLP

Interstate Editor:
Nicholas Nesi, CPA
BDO Seidman LLP

Contributing Editors:
Henry Goldwasser, CPA
M.R. Weiser & Co. LLP

Steven M. Kaplan, CPA
Kahn, Hoffman, Nonenmacher & Hochman, LLP

John J. Fielding, CPA
PricewaterhouseCoopers LLP

Warren Weinstock, CPA
Marks Paneth & Shron, LLP

The CPA Journal is broadly recognized as an outstanding, technical-refereed publication aimed at public practitioners, management, educators, and other accounting professionals. It is edited by CPAs for CPAs. Our goal is to provide CPAs and other accounting professionals with the information and news to enable them to be successful accountants, managers, and executives in today's practice environments.