The New York State Department of Taxation and Finance has formally proposed its 2015 corporate tax reform regulations under the State Administrative Procedure Act (SAPA). The regulations have been submitted for publication in the August 9, 2023 edition of the State Register. 

These regulations have a long history. There were several iterations of the draft regulations over the past eight years, each version tweaked based, in part, on taxpayer comments. The “draft” nature of the regulations caused uncertainty; it was unclear to what extent taxpayers could rely on the guidance in the regulations as they were merely draft regulations and subject to change. While taxpayers will not agree with the substance of every regulation in the formally proposed version, if the regulations are ultimately promulgated it should, at least, provide a level of certainty regarding the Department’s interpretation of the Tax Law on a going forward basis. 

While taxpayers have had the chance over the past eight years to comment on the draft regulations, they will again have the opportunity to comment on the formally proposed version. The State Administrative Procedure Act requires the Department to provide comment period of at least 60 days after a notice of proposed rule-making is published in the State Register before it can adopt a proposed rule. Thus, taxpayers that wish to comment on these formally proposed regulations must do so by October 10, 2023. The comments should be submitted to Kathleen D. Chase, Office of Counsel, Department of Taxation and Finance, W.A. Harriman Campus, Building 9, Room 200, Albany, NY  12227.