§ 659. Report of federal changes, corrections or disallowances. If the
amount of a taxpayer's federal taxable income, total taxable amount or
ordinary income portion of a lump sum distribution or includible gain of
a trust reported on their federal income tax return for any taxable
year, or the amount of a taxpayer's earned income credit or credit for
employment-related expenses set forth on such return, or the amount of
any federal foreign tax credit affecting the calculation of the credit
for Canadian provincial taxes under section six hundred twenty or six
hundred twenty-A of this article, or the amount of any claim of right
adjustment, is changed or corrected by the United States internal
revenue service or other competent authority or as the result of a
renegotiation of a contract or subcontract with the United States, or
the amount an employer is required to deduct and withhold from wages for
federal income tax withholding purposes is changed or corrected by such
service or authority or if a taxpayer's claim for credit or refund of
federal income tax is disallowed in whole or in part, the taxpayer or
employer shall report such change or correction or disallowance within
ninety days after the final determination of such change, correction,
renegotiation or disallowance, or as otherwise required by the
commissioner, and shall concede the accuracy of such determination or
state wherein it is erroneous. Provided, however, if the taxpayer is a
direct or indirect partner of a partnership required to report
adjustments in accordance with section six hundred fifty-nine-a of this
part, such taxpayer shall also report such adjustments in accordance
with section six hundred fifty-nine-a of this part. The allowance of a
tentative carryback adjustment based upon a net operating loss carryback
pursuant to section sixty-four hundred eleven of the internal revenue
code shall be treated as a final determination for purposes of this
section. Any taxpayer filing an amended federal income tax return and
any employer filing an amended federal return of income tax withheld
shall also file within ninety days thereafter an amended return under
this article, and shall give such information as the commissioner may
require. The commissioner may by regulation prescribe such exceptions to
the requirements of this section as they deem appropriate. For purposes
of this section, (i) the term "taxpayer" shall include a partnership
having a resident partner or having any income derived from New York
sources, and a corporation with respect to which the taxable year of
such change, correction, disallowance or amendment is a year with
respect to which the election provided for in subsection (a) of section
six hundred sixty of this article is in effect, and (ii) the term
"federal income tax return" shall include the returns of income required
under sections six thousand thirty-one and six thousand thirty-seven of
the internal revenue code. In the case of such a corporation, such
report shall also include any change or correction of the taxes
described in paragraphs two and three of subsection (f) of section
thirteen hundred sixty-six of the internal revenue code. Reports made
under this section by a partnership or corporation shall indicate the
portion of the change in each item of income, gain, loss or deduction
(and, in the case of a corporation, of each change in, or disallowance
of a claim for credit or refund of, a tax referred to in the preceding
sentence) allocable to each partner or shareholder and shall set forth
such identifying information with respect to such partner or shareholder
as may be prescribed by the commissioner.