NYS Department of Taxation came out with an official announcement today of its decoupling from IRS regarding the $ 10,200 Unemployment Insurance Exemption.
While we are all stuck with this for now - I would suggest that each of you - or through your professional associations (maybe even through your tax software company) write letters to the NYS Department of Finance or your State Legislators to request that SHOULD this policy change due to subsequent legislation where it is made retroactive, that the DTF follow IRS's policy of
internally correcting the returns effected, issuing refunds to those taxpayers, and providing a follow up notification of the changes made to the return. The reason for
the follow up notice would be for any future reason to amend the returns - both the DTF and the taxpayer have the same information to work with and would avoid
massive discrepancy correspondence.
While we are all stuck with this for now - I would suggest that each of you - or through your professional associations (maybe even through your tax software company) write letters to the NYS Department of Finance or your State Legislators to request that SHOULD this policy change due to subsequent legislation where it is made retroactive, that the DTF follow IRS's policy of
internally correcting the returns effected, issuing refunds to those taxpayers, and providing a follow up notification of the changes made to the return. The reason for
the follow up notice would be for any future reason to amend the returns - both the DTF and the taxpayer have the same information to work with and would avoid
massive discrepancy correspondence.
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