Department of Taxation and Finance Instructions for Form ...

1 CT-3-M-I. Department of Taxation and Finance Instructions for Form CT-3-M. General Business Corporation MTA Surcharge Return Form CT-1, Supplement to Corporation Tax The term receipts means the receipts that are subject to the New York State apportionment rules set forth in 210-A, and the term Instructions receipts within the MCTD means the receipts included in the See Form CT-1 for the following topics: numerator of the MCTD apportionment factor determined under Changes for the current tax year (general and by Tax Law Article) Also, receipts from processing credit card transactions Business information (how to enter and update) for merchants include merchant discount fees received by the corporation. Entry formats Dates A corporation is doing business in the MCTD if ( (c)): Negative amounts it has issued credit cards (including bank, credit, travel, and Percentages entertainment cards) to 1,000 or more customers who have a mailing address in the MCTD as of the last day of its tax year.

2 Whole dollar amounts it has merchant customer contracts with merchants and the total Are you claiming an overpayment? number of locations covered by those contracts equals 1,000 or NAICS business code number and NYS principal business more locations in the MCTD to whom the corporation remitted activity payments for credit card transactions during the tax year; or Limitation on tax credit eligibility the sum of the number of customers and the number of locations Third-party designee equals 1,000 or more. Paid preparer identification numbers A corporation that does not meet any of the thresholds above, but Is your return in processible form? has at least 10 customers, or locations, or customers and locations, Use of reproduced and computerized forms and is part of a unitary group that meets the ownership test under 210-C is doing business in the MCTD if the number of customers, Electronic filing and electronic payment mandate locations, or customers and locations, within the MCTD of the Online services members of the unitary group that have at least 10 customers, Web File locations, or customers and locations, within the MCTD in the aggregate meets any of the thresholds above.

3 Form CT-200-V. Collection of debts from your refund or overpayment Exception: A qualified entity (QE) of a New York State innovation hot spot that operates solely within a hot spot is not subject to the Fee for payments returned by banks MTA surcharge for five tax years, beginning with the first tax year Reporting requirements for tax shelters during which it becomes a tenant in, or part of, a hot spot. This Tax shelter penalties exception is only available to a QE that has irrevocably elected on its Form CT-3 to be subject to only the fixed dollar minimum tax Voluntary Disclosure and Compliance Program base. This exception does not apply to taxpayers filing as part of a Your rights under the Tax Law New York State combined group. Need help? Privacy notification Estimated MTA surcharge Any corporation that is subject to the MTA surcharge that is All citations are to New York State Tax Law sections unless required to make a declaration of estimated franchise tax must specifically noted otherwise.

4 Also make a declaration of estimated MTA surcharge and make quarterly installment payments on Form CT-400, Estimated Tax for Corporations. Most corporations are required to electronically General information file this form either using tax software or online, after setting up an online services account, through the Department 's website. Who must file this form and pay this surcharge A taxpayer filing Form CT-3, General Business Corporation For more information, see Form CT-400-I, Instructions for Franchise Tax Return, or Form CT-3-A, General Business Form CT-400. Corporation Combined Franchise Tax Return, under Article 9-A. that does business, employs capital, owns or leases property, When and where to file maintains an office, or derives receipts from activity, in the File this return and pay the amount of MTA surcharge due within Metropolitan Commuter Transportation District (MCTD), must 3 months after the end of your reporting period.

5 If your filing date also file Form CT-3-M and pay a metropolitan transportation falls on a Saturday, Sunday, or legal holiday, then you must file your business tax (MTA surcharge) on business done in the Metropolitan return on or before the next business day. Transportation Authority region. The MCTD includes the counties of New York, Bronx, Kings, Queens, Richmond, Dutchess, Nassau, Mail Form CT-3-M separately or with your Form CT-3 or CT-3-A to: Orange, Putnam, Rockland, Suffolk, and Westchester. NYS CORPORATION TAX. A corporation is considered to be deriving receipts in the MCTD if PO BOX 15181. it has receipts within the MCTD of $1 million or more in a tax year ALBANY NY 12212-5181. ( (b)). A corporation with less than $1 million but at least Private delivery services $10,000 of receipts within the MCTD in a tax year, that is part of See Publication 55, Designated Private Delivery Services.

6 A unitary group that meets the ownership test under 210-C, is deriving receipts from activity in the MCTD if the receipts within the MCTD of the members of the unitary group that have at least Extension of time for filing MTA surcharge return $10,000 of receipts within the MCTD in the aggregate meet the You may request additional time to file an MTA surcharge return. $1 million threshold ( (d)(i)). File Form CT-5, Request for Six-Month Extension to File (for franchise/business taxes, MTA surcharge, or both), or Form , Page 2 of 4 CT-3-M-I (2018). Request for Six-Month Extension to File (for combined franchise accounting firm, make sure they use your complete and accurate tax return, or combined MTA surcharge return, or both), on or information when completing all forms. before the due date of the return for which you are requesting the extension, and pay the MTA surcharge you estimate to be due.

7 Reporting period Use this tax return for calendar year 2018, fiscal years that begin Amended return in 2018 and end in 2019, and tax years of less than 12 months that If you are filing an amended return, mark an X in the Amended begin on or after January 1, 2018, but before January 1, 2019. return box in the upper left corner of Form CT-3-M. You can also use the 2018 return if: If you file an amended federal return, you must file an amended you have a tax year of less than 12 months that begins and ends New York State return within 90 days thereafter. in 2019, and For amended returns based on changes to federal taxable the 2019 return is not yet available at the time you are required to income (FTI) If your FTI has been changed or corrected by a file the return. final determination of the Commissioner of Internal Revenue or by a renegotiation of a contract or subcontract with the United In this case you must show your 2019 tax year on the 2018 return States, you must file an amended return reflecting the changes and take into account any tax law changes and any change in to FTI within 90 days (120 days if filing an amended combined the tax surcharge rate in effect for tax years beginning after return) of the final federal determination (as final determination is December 31, 2018.)

8 Described under the regulations of the Commissioner of Taxation All filers must complete the beginning and ending tax year boxes in and Finance ). the upper right corner on page 1 of the form. You must attach a copy of federal Form 4549, Income Tax Examination Changes, to your amended return. Line Instructions If you filed as part of a consolidated group for federal tax purposes Line A Make your check or money order payable in United States but on a separate basis for New York State tax purposes, you must funds. We will accept a foreign check or foreign money order only if submit a statement indicating the changes that would have been payable through a United States bank or if marked Payable in made if you had filed on a separate basis for federal tax purposes. funds. For credits or refunds based upon carryback of a net operating Computation of MTA surcharge loss (NOL) To claim a credit or refund resulting from the (a) requires that the rate of MTA surcharge applies only to carryback of an NOL to a prior year, file an amended return for the that portion of the tax imposed under 209, before the deduction year to which the carryback is being applied within three years of of any credits, that is attributable to the taxpayer's business the date the original return was filed or within two years of the date activity carried on within the MCTD.

9 In addition, the MTA surcharge the tax was paid, whichever is later. Be sure to use the tax return computed on a combined return includes a surcharge on the fixed for the year to which the carryback is being applied. dollar minimum tax for each member of the combined group subject You must attach the following to your amended return: to the MTA surcharge. a copy of the New York State return previously filed with New Line 1 If you file Form CT-3, enter the amount from Form CT-3, York State for the loss year; and Part 2, line 2. If you file Form CT-3-A, enter the amount from Form when carrying back loss incurred in a tax year that Form CT-3-A, Part 2, line 2, plus the fixed dollar minimum tax of began on or after January 1, 2015. each member of the combined group that is subject to the MTA.

10 Surcharge that is included on Form CT-3-A, Part 2, line 4b. NOLS from tax years that begin on or after January 1, 2015, cannot be carried back to tax years that began before January 1, 2015. If line 4 is less than line 7, go to line 13a. For credits or refunds of corporation tax paid To claim any If line 4 is greater than or equal to line 7, continue with line 8a. refund type that requires an amended return, other than an NOL Line 8b If on line 5, column B of the Form CT-300 used to report carryback (see above), file an amended New York State return for the mandatory first installment (MFI) for the tax period immediately the year being amended and, if applicable, attach a copy of the following the tax period for which this return is being filed (the claim form filed with the IRS (usually Form 1120X) and proof of next MTA surcharge period) you did not apply an anticipated federal refund approval, Statement of Adjustment to Your Account.