OK. Tell me where I'm wrong

[WhiteOleander]

I have been mulling over NY state requiring anyone who prepares a NY tax return for pay to register with them. I haven't done so yet. But I will have to.

I am wondering if there is more to this than what initially appears. I wonder if NY plans to contact all out of state preparers and request a non-resident NY state tax return. Perhaps they plan to help with their deficit by taxing us as non-resident NY source income.

Am I off base?

( i am not a person that usually subscribes to conspiracy theories. but i do wear my tin foil hat so "they" can't read my thoughts )

[Snaggletooth]

Don't Know

that there was any purpose more prodigious than simply raising several million dollars in revenue with $100 a pop. This means they will come after you quicker for not sending in your $100 than for not reporting some small portion of your income doing NY returns.

If you prepare these returns in Texas, I don't know how they can claim this is NY-source income, even if your clients have NY ties. New York is notorious for ignoring claims of other states on income with disputed nexus, but I just think they would run into massive resistance from other states from claiming tax preparation performed in another state is "New York source income."

[New York Enrolled Agent]

I am wondering if there is more to this than what initially appears. I wonder if NY plans to contact all out of state preparers and request a non-resident NY state tax return. Perhaps they plan to help with their deficit by taxing us as non-resident NY source income.

Am I off base?

I think you're safe. §631 of NY Tax Law contains the following:

§ 631. New York source income of a nonresident individual. (a)
General. The New York source income of a nonresident individual shall
be the sum of the following: (1) The net amount of items of income,
gain, loss and deduction entering into his federal adjusted gross
income, as defined in the laws of the United States for the taxable
year, derived from or connected with New York sources, including:
...

(b) Income and deductions from New York sources.
(1) Items of income, gain, loss and deduction derived from or
connected with New York sources shall be those items attributable to:
...
(B) a business, trade, profession or occupation CARRIED ON IN THIS STATE;
or ...

Now, I suppose they could try to change the law.

[WhiteOleander]

OK. Thanks. I know it would be a long shot. But, the states are so strapped that I could see them really reaching.

[ChEAr$]

However; if I prepare a New York return down here for client to mail in (with my signature of course) will/might the great state of Noo Yawk holler at me for not registering with them first?