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IT-260-I (8/96) (back)

— accompanied by a letter prepared on the letterhead of

If he accrues the entire gain on his 1996 resident income

the ﬁnancial institution and signed by an ofﬁcer,

tax return, the total tax due is $20,587.

identifying the passbooks or certiﬁcates of deposit by

account number and conﬁrming that withdrawal of

By electing to post a surety bond or other acceptable

principal from the passbook or certiﬁcate of deposit

security, Mr. Allen would be required to pay only $6,337 on

offered as collateral will not be permitted without

his 1996 resident income tax return, computed in the

written consent from the department, and stating that

normal manner, utilizing the installment method of reporting

any right of setoff that the ﬁnancial institution may

as shown on the federal return. Mr. Allen would then be

possess against the taxpayer shall be subordinated to

required to ﬁle a 1997 and 1998 Form IT-203, Nonresident

the interest of the department in the passbook or

and Part-Year Resident Income Tax Return, and report the

certiﬁcate of deposit offered as collateral.

long-term capital gain from the installment sale as shown

on the federal return. The surety bond required in this

Any interest accruing on bonds, passbooks or

example is $14,250 ($20,587 - $6,337), representing the

certiﬁcates of deposit belongs to the taxpayer and

deferred tax by reason of the election. $14,250 is also the

can be withdrawn.

amount required if Mr. Allen posts a bank passbook or

certiﬁcate of deposit. If bonds or notes are posted, they

Standby letters of credit offered as collateral must:

must have a fair market value of at least $21,375,

— be irrevocable for a period of time determined by the

representing 1

⁄

times the amount of the deferred tax. A

department;

standby letter of credit would have to be written for the

— be made payable to the New York State Department

amount of deferred tax rounded up to the next higher

of Taxation and Finance ;

thousand dollars, or $15,000.

— be written for the amount of deferred tax rounded up to

the next higher thousand dollars;

The surety bond Form IT-260 or the collateral security with

— be issued or conﬁrmed by a bank approved by the

Form IT-260.1, whether or not ﬁled with Form IT-203, must

department; and

be sent by registered mail to:

— contain other payment terms acceptable to the

Department of Taxation and Finance.

NYS TAX DEPARTMENT

DIVISION OF THE TREASURY

Lottery Winners - A copy of Form IT-2102-G, Report of

CASH MANAGEMENT UNIT

Certain Gambling Winnings , that shows that taxes were

P O BOX 7002

withheld on the lottery winnings, will be considered

ALBANY NY 12225-7002

acceptable security.

The copy of Form IT-2102-G must be attached to

If you have questions regarding the ﬁling of a bond, please

call our bond unit at (518) 457-8692 or write to the Income

Form IT-260.1.

Tax Audit Administrator at the address below.

Example: On November 12, 1996, James Allen sold stock

on the installment basis, realizing a long-term capital gain

For subsequent years, Form IT-203 must be sent to:

of $300,000 payable in three equal installments of

$100,000. He received the ﬁrst installment on

December 1, 1996 and is scheduled to receive the

INCOME TAX AUDIT ADMINISTRATOR

remaining two installments on December 1 of 1997 and

CENTRAL INCOME TAX SECTION

1998. Mr. Allen, who is single and claims the standard

BUILDING 9 ROOM 305

deduction, changed his residence from New York State to

W A HARRIMAN CAMPUS

Florida on December 31, 1996.

ALBANY NY 12227

Need Help?

For information, call toll free 1 800 225-5829. For forms or publications, call toll free 1 800 462-8100. Telephone assistance is

available from 8:30 a.m. to 4:25 p.m., Monday through Friday.

From areas outside the U.S. and Canada, call (518) 485-6800.

Hotline for the Hearing and Speech Impaired - If you have a hearing or speech impairment and have access to a telecommunications

device for the deaf (TDD), you can get answers to your New York State tax questions by calling toll free from the U.S. and Canada

1 800 634-2110. Hours of operation are from 8:30 a.m. to 4:15 p.m., Monday through Friday. If you do not own a TDD, check with

independent living centers or community action programs to ﬁnd out where machines are available for public use.

Persons with Disabilities - In compliance with the Americans with Disabilities Act, we will ensure that our lobbies, ofﬁces, meeting

rooms and other facilities are accessible to persons with disabilities. If you have questions about special accommodations for persons

with disabilities, please call the information numbers listed above.

If you need to write, address your letter to: NYS Tax Department, Taxpayer Assistance Bureau, W A Harriman Campus, Albany NY

12227.

Instructions For Form It-260 And It-260.1 - Change Of Resident Status - Special Accruals Page 2

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