Changes to MCTMT filing requirements 2015

By Brian Gordon

New York State issued a technical memorandum TSB-M-14(1)MCTMT to explain the changes to MCTMT filing requirements. Article 23 of the Tax Law imposes the MCTMT on certain employers and self-employed individuals engaging in business within the Metropolitan Commuter Transportation District (MCTD). The amendments to the tax law are for self-employed individuals, not employers.

For purposes of the MCTMT, self-employed individuals include:

• Sole proprietors
• Partners in partnerships
• Members of limited liability companies (LLCs) treated as partnerships for federal income tax purposes (hereafter, members will be referred to as partners.)
• Single-member LLCs treated as disregarded entities (sole proprietorships) for federal income tax purposes

Section 804(b) of the Tax Law, which requires individuals with net earnings from self-employment to make estimated MCTMT payments and to file annual MCTMT returns for the tax year, was amended to conform the MCTMT payment and filing due dates to personal income tax payment and filing due dates.

Effective for tax years beginning on or after January 1, 2015, estimated MCTMT payments are due on April 15, June 15, September 15, and January 15. Annual MCTMT returns must be filed by the 15th day of the fourth month following the close of the tax year. Prior to the amendment, quarterly estimated MCTMT payments were due on April 30, July 31, October 31, and January 31 and annual MCTMT returns were due on the 30th day of the fourth month following the close of the tax year. Note: The payment and filing due dates for employers have not changed.

In addition, the new law allows the Tax Department to require estimated MCTMT payments to be combined with payments of estimated personal income tax, and annual MCTMT return information to be reported on personal income tax returns. Accordingly, beginning with the payment due on April 15, 2015, revised Form IT-2105, Estimated Tax Payment Voucher for Individuals, requires self-employed individuals to include estimated MCTMT payments on Form IT-2105. In addition, beginning with tax year 2015, the department will require self-employed individuals to include annual MCTMT information on their personal income tax returns.

For tax years beginning on or after January 1, 2015, self-employed individuals must remit a single payment of combined MCTMT and personal income tax with Form IT-2105 or with personal income tax returns, where applicable. Prior to the new law, MCTMT payments could not be combined with personal income tax payments.

For the entire technical memorandum, click memorandum

For more information regarding State and Local Taxes, please visit
Brian Gordon's S.A.L.T Blog at:
www.st-cpas.com/blog.