Additional Instructions For The 2003 Form Ct-2658-I, Instructions For Form Ct-2658, And Form It-2658-I, Instructions For Form It-2658 Sheet printable pdf download

N-03-30

Important Notice

November 2003

Additional Instructions for the 2003 Form CT-2658-I, Instructions for Form CT-2658,

and Form IT-2658-I, Instructions for Form IT-2658

Recent legislation amended the estimated tax provisions that require partnerships (including limited liability

companies (LLCs) or limited liability partnerships (LLPs) that are treated as partnerships for federal income tax

purposes) and New York S corporations that have income derived from New York sources to make estimated tax

payments on behalf of partners and shareholders who are C corporations or nonresident individuals.

This new legislation exempts publicly traded partnerships, as defined in Internal Revenue Code (IRC) section 7704,

from making estimated tax payments on behalf of their partners who are C corporations or nonresident individuals.

In addition, partnerships and New York S corporations are not required to make estimated tax payments on behalf of

any partner or shareholder who files a certificate of exemption with the partnership or New York S corporation.

Use the original instructions for the 2003 versions of Forms CT-2658, Report of Estimated Tax for Corporate

Partners, and IT-2658, Report of Estimated Tax for Nonresident Individual Partners and Shareholders, along with

the information contained in this notice, to determine the amount of the estimated tax payment that a partnership or

New York S corporation is required to make for January 15, 2004 (December 15, 2003, for partnerships who have

corporate partners and elect to make the January 15 payment on December 15, 2003). Except as described below, the

information contained in the original instructions remains in effect.

Publicly traded partnerships

Under the new law, publicly traded partnerships (as defined in IRC section 7704) are automatically exempted from

making estimated tax payments on behalf of their C corporation or nonresident individual partners. Accordingly,

these partnerships do not need to make a payment on January 15, 2004. However, any payments that a publicly

traded partnership made on September 15, 2003, will not be refunded at this time. The partner may claim credit for

that payment when the individual partner files his or her personal income tax return or the corporation files its

corporation tax return.

Automatic exception from the estimated tax provisions

The Tax Law provides for an automatic exception from the estimated tax provisions for partners or shareholders as

follows:

— Estimated tax payments are not required for any partner or shareholder whose estimated tax required to be paid

for the year by the partnership or New York S corporation is $300 or less; or

— Estimated tax payments are not required for any partner or shareholder if the entity is authorized to file a group

return, and the partner or shareholder has elected to be included on the group return.

New exemption from the estimated tax provisions

Under the new law, the commissioner has the authority to waive the requirement that a partnership or New York

S corporation make the estimated tax payments with respect to C corporations and nonresident individuals who meet

certain conditions. Effective with the January 15, 2004, payment (or the December 15, 2003, payment for

partnerships who have corporate partners and elect to make the January 15 payment on December 15, 2003), the

commissioner has authorized that C corporation partners and individual nonresident partners and shareholders who

do not qualify for one of the automatic exceptions may, if they qualify, claim exemption from the estimated tax

provisions by filing Form CT-2658-E, Certificate of Exemption from Partnership Estimated Tax Paid on Behalf of

Corporate Partners, or Form IT-2658-E, Certificate of Exemption from Partnership or New York S Corporation

Estimated Tax Paid on Behalf of Nonresident Individual Partners and Shareholders, with the partnership or

New York S corporation. Once the partnership or New York S corporation receives the signed certificate, the

partnership or New York S corporation may rely on that certificate and is not required to make any further estimated

tax payments on behalf of that partner or New York S corporation shareholder. The partnership or New York

W A Harriman Campus, Albany NY 12227

Additional Instructions For The 2003 Form Ct-2658-I, Instructions For Form Ct-2658, And Form It-2658-I, Instructions For Form It-2658 Sheet

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