Instructions for Form NYC-4S

1 Instructions for Form NYC-4S . General Corporation Tax Return For fiscal years beginning in 2021 or for calendar year 2021. IMPORTANT INFORMATION REGARDING THE FILING OF NYC CORPORATE TAX RETURNS. Pursuant to section of the Administrative Code of the City of New York as enacted by section 3 of Part D of Chapter 60 of the Laws of 2015, for tax- able years beginning on or after January 1, 2015, the General Corporation Tax is only applicable to Subchapter S Corporations and Qualified Subchapter S. Subsidiaries. Therefore, only these types of corporations should file this return. All other corporations should file a return on Form NYC-2 or Form NYC-2S. or, if included in a combined return, on Form NYC-2A. IMPORTANT INFORMATION CONCERNING FORM NYC-200V AND PAYMENT OF TAX DUE. Payments may be made on the NYC Department of Finance website at , or via check or money order. If paying with check or money order, do not include these payments with your New York City return.

2 Checks and money orders must be accompanied by payment voucher form NYC-200V and sent to the address on the voucher. Form NYC-200V must be postmarked by the return due date to avoid late payment penalties and interest. See form NYC-200V for more information. Highlights of Recent Tax Law Changes Note that according to the federal Tax Cuts and Jobs Act of 2017, net operating losses (NOL) generated during or after 2018 generally may no longer be carried back. These losses may be carried forward indefinitely; however each year's NOL deduction will be limited to 80% of taxable income (with- out regard to the deduction). For taxable years beginning on or after January 1, 2015, federal or state tax base changes should be reported as an Amended Return. See Finance Memorandum 17-5, Reporting Federal or State Changes , revised and dated October 10, 2018, for more information. GENERAL INFORMATION ship or a branch for federal tax purposes will be Form NYC-4S or Form NYC-4S -EZ if: similarly treated for City tax purposes.

3 See NOTE: This form may be used by federal Finance Memorandum 99-1 for additional infor- 1) for taxable years beginning after 6/30/96 it Subchapter S Corporations and Qualified mation. carries on business both inside and outside Subchapter S Subsidiaries only. If any instruc- New York City;. tions appear to apply to C Corporations, they FORM FOR TAXPAYERS CLAIMING A. should be read to apply only to S corps and quali- NET OPERATING LOSS DEDUCTION 2) it has subsidiary and/or investment capital;. fied S subsidiaries. Taxpayers claiming a deduction for a Net Operating Loss must complete Form NYC- 3) it claims an optional deduction for expendi- S CORPORATIONS NOLD-GCT, Net Operating Loss Computation tures relating to air pollution control facili- An S Corporation is subject to the General and include it with their GCT filing. For more ties, as provided in Section (g) of Corporation Tax and must file Form 4S-EZ, if it is information see Form NYC-NOLD-GCT.

4 The Ad. Code;. eligible to use that form, or Form NYC-4S or Form NYC-3L, whichever is applicable. Under FIXED DOLLAR MINIMUM TAX BASED 4) it claims a modification with respect to gain certain limited circumstances, an S Corporation ON RECEIPTS arising on the sale of certain property, as pro- may be permitted or required to file a combined For tax years beginning after 2008, there is a slid- vided in Section (h) of the Ad. return (Form NYC-3A). See, , Finance ing scale fixed dollar minimum tax based on Code;. Memorandum 99-3 for information regarding the receipts allocated to New York City. The amount treatment of qualified subchapter S subsidiaries. of City receipts for this purpose is the same as the 5) it entered into a safe harbor lease transac- amount used for determining the taxpayer's busi- tion under provisions of Section 168(f)(8) of The income, gains, losses, deductions and capital ness allocation percentage. See Ch. 201, 17, of the Internal Revenue Code as it was in effect of a qualified subchapter S subsidiary may not be the Laws of 2009.

5 For taxpayers who use Form for agreements entered into prior to January included in the report of the parent S Corporation. NYC-4S or NYC-4S -EZ, and, accordingly, allo- 1, 1984;. A QSSS must file a separate report if it is subject cate 100 percent of their income to the City, the to tax. amount of receipts used for this purpose is the 6) it claims a credit for increased real estate tax total amount of all receipts the taxpayer has payments made to a landlord in connection Federal S corporation taxpayers must complete received in the regular course of business. with the relocation of employment opportu- the form NYC-ATT-S-CORP, Calculation of nities to New York City, as provided in Federal Taxable Income for S Corporations CORPORATIONS THAT MAY FILE FORM Section of the Ad. Code;. and include it with their GCT filing. For more NYC-4S . information see Form NYC-ATT-S-CORP. Corporations (as defined in Section of 7) it claims a credit for certain costs or expens- the New York City Administrative Code) doing es incurred in relocating employment oppor- CORPORATION DEFINED business, employing capital, or owning or leasing tunities to New York City, as provided in Unincorporated entities electing to be treated as property in a corporate or organized capacity, or Section , , associations taxable as corporations for federal maintaining an office in New York City must file or of the Ad.

6 Code. See income tax purposes pursuant to the federal a General Corporation Tax return. Corporations Instructions to Forms , check-the-box rules under IRC 7701(a)(3) are not required to file Form NYC-3L may file Form and ;. treated as corporations for City tax purposes and NYC-4S or Form NYC-4S -EZ. 8) it claims a modification with respect to are not subject to the Unincorporated Business CORPORATIONS REQUIRED TO FILE wages and salaries disallowed as a deduction Tax. Eligible entities having a single owner disre- FORM NYC-3L for federal income tax purposes (work incen- garded as a separate entity under the check-the- A corporation must file Form NYC-3L and not tive/jobs credit provisions), as provided in box rules and treated as either a sole proprietor- Section (a)(7) of the Ad. Code;. Instructions for Form NYC-4S - 2021 Page 2. 9) either separately or as a member of a part- Code are not required to file General 2022, or, for fiscal year taxpayers, on the 15th day nership, it is engaged in an insurance busi- Corporation Tax returns.

7 However, corpora- of the third month following the close of the fiscal ness as a member of the New York Insurance tions that are subject to tax under Chapter 11 year. Exchange; as vendors of utility services are subject to the General Corporation Tax in accordance All returns, except refund returns: 10) it is a Domestic International Sales Corporation with Section of the Ad. Code and (DISC) or a Foreign Sales Corporation; must file a return. NYC Department of Finance Box 5564. 11) it claims a credit for New York City d) A limited profit housing corporation organ- Binghamton, NY 13902-5564. Unincorporated Business Tax paid by a part- ized and operating pursuant to the provisions nership in which it is a partner as provided in of Article Two of the Private Housing Remittances - Pay online with Form NYC-200V. Section of the Ad. Code; Finance Law at , or Mail payment and Form NYC-200V only to: 12) it will be included in a combined report, e) Insurance corporations Form NYC-3A; NYC Department of Finance f) A Housing Development Fund Company Box 3933.

8 13) it is required by Ad. Code section (n) New York, NY 10008-3933. (HDFC) organized and operating pursuant to to add back royalty payments made to related mem- the provisions of Article 11 of the Private bers; Returns claiming refunds: Housing Finance Law 14) it claims the Beer Production Credit avail- NYC Department of Finance able under Ad. Code 11-604(22); g) Organizations organized exclusively for the Box 5563. purpose of holding title to property as Binghamton, NY 13902-5563. 15) any portion of its business interest expense described in Sections 501(c)(2) or (25) of the deduction would have been disallowed Internal Revenue Code Certain short-period returns: If this is NOT a under IRC section 163(j) if it had not made final return and your federal return covered a peri- an election under Subchapter S of the IRC; h) An entity treated as a Real Estate Mortgage od of less than 12 months as a result of your join- Investment Conduit (REMIC) for federal ing or leaving a federal consolidated group or as a 16) for federal purposes, it reports income under income tax purposes.

9 (Holders of interest in result of a federal IRC 338 election, this return IRC 951A or 965; a REMIC remain taxable on such interest or generally will be due on the due date for the fed- on the income therefrom.) eral return and not on the date noted above. Check 17) it would have been eligible for a deduction the box on the front of the return. pursuant to IRC section 250(a)(1)(A), , i) Corporations principally engaged in the con- FDII, if it had not made an election under duct of a ferry business and operating FEDERAL OR NEW YORK STATE. Subchapter S of the IRC; between any of the boroughs of the City CHANGES. under a lease granted by the City For taxable years beginning on or after January 1, 18) it claims a modification with respect to 2015, changes in taxable income or other tax base amounts excluded from the definition of j) A corporation principally engaged in the con- made by the Internal Revenue Service ( IRS ) and contribution to the capital of the taxpayer duct of an aviation, steamboat, ferry or navi- /or New York State Department of Taxation and under IRC 118(b)(2), as provided in section gation business, or two or more such busi- Finance ( DTF ) will no longer be reported on (a)(14) of the NYC Administrative nesses, provided that all of the capital stock form NYC-3360.

10 Instead, taxpayers must report Code; or of such corporation is owned by a municipal these federal or state changes to taxable income or corporation of New York other tax base by filing an amended return. This 19) For New York City purposes, it is required to amended return must include the DOF tax work- modify federal taxable income with respect k) Bank holding corporations filing on a com- sheet that identifies each change to the tax base to amounts invested in Qualified bined basis in accordance with Section 11- ( Tax Base Change ) and shows how each such Opportunity Funds under IRC section 646(f) of the Ad. Code Tax Base Change affects the taxpayer's calcula- 1400Z-2. See Ad. Code sections 11- l) Corporations principally engaged in the oper- tion of its New York City tax. Templates for the 602(8)(a)(15) and 11-602(8)(b)(22). ation of marine vessels whose activities in the tax worksheets are available on the DOF website City are limited exclusively to the use of at This amended return must The following are NOT required to file a property in interstate or foreign commerce also include a copy of the IRS and/or DTF final General Corporation Tax Return: determination, waiver, or notice of carryback m) Foreign corporations that are exempt under allowance.