INSIGHTS & IDEAS

NYS sending incorrect 2005 tax notices

NYS is incorrectly assessing additional tax on 2005 returns which deducted sales tax instead of NY State income tax.  Anyone receiving such a notice should send it to us for response.   In 2005, for clients subject to federal alternative income tax we deducted sales tax instead of income tax to receive a greater tax benefit.  NY State is incorrectly assuming that state income tax was deducted and is recomputing NY State tax and sending notices that there is additional taxes due.

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