Free CT-198.1 - New York

NewYorkStateDepartmentofTaxationandFinance

CT-198.1
(10/07)
Dissolutionofdomesticbusinesscorporationfordelinquenttaxes UponrecommendationbytheCommissionerofTaxationandFinance, adomesticgeneralbusinesscorporationthathasfailedtofilerequired franchisetaxreturnsorpaythefranchisetaxesduefortwoconsecutive yearsmaybedissolvedbyproclamationbytheSecretaryofState.The dissolutionbyproclamationprocedureisnotasubstituteforvoluntary dissolutionandwillresultinsubstantialpenaltiesagainstthecorporation. Anyfranchisetaxdelinquencybecomesanautomaticlienagainstany assetsofthecorporation,evenifitwasdissolvedbyproclamation. Foreignbusinesscorporations AforeignbusinesscorporationisliableforfranchisetaxesunderArticle9-A duringtheperiodinwhichitisdoingbusiness,employingcapital,owningor leasingproperty,ormaintaininganofficeinNewYorkState. Inaddition,aforeignbusinesscorporationauthorizedtodobusinessin NewYorkStateisalsoliableforpaymentsofitsannualmaintenancefee of$300(Article9,section181.2),untilsuchtimeasitsurrenderstothe DepartmentofStateitsauthoritytodobusiness,regardlessofwhether itisdoingbusiness,employingcapital,owningorleasingproperty,or maintaininganofficeinthestate.Ifanauthorizedforeigncorporationis taxableunderArticle9-A,themaintenancefeeisappliedasacreditagainst thefranchisetax.Formoreinformation,seeFormCT-245,Maintenance Fee and Activities Return for a Foreign Corporation Disclaiming Tax Liability. AforeignbusinesscorporationdoingbusinessinNewYorkStatemustalso payalicensefeebasedoncapitalstockemployedwithinNewYorkState (Article9,section181.1).Formoreinformation,seeFormCT-240,Foreign Corporation License Fee Return. Surrenderofauthorityofforeignauthorizedbusinesscorporation AforeigncorporationthatnolongerconductsbusinessactivitiesinNew YorkStateandnolongerrequiresauthoritytodobusinessinNewYorkState maysurrenderauthoritytodobusinessinthisstate.TheconsentoftheTax Commissionerisrequiredtosurrendertheauthorityofaforeigncorporation. Annulmentofforeignauthorizedbusinesscorporationfordelinquent taxes UponrecommendationbytheCommissionerofTaxationandFinance, aforeigncorporationauthorizedtodobusinessinNewYorkStatethat hasfailedtofiletherequiredfranchisetaxreturnsorpayfranchisetaxes and/ormaintenancefeesfortwoconsecutiveyearsmayhaveitsauthority annulledbytheSecretaryofState.Aforeigncorporationsubjecttotax underArticle9-A,section209.1,wouldcontinuetobeliableforfranchisetax returnsandfranchisetaxeseventhoughitsauthoritywasannulled. Call1800327-9688(DissolutionUnit)ifyouhavequestionsconcerning dissolutionorsurrenderingauthoritytodobusinessinNewYorkState. SubchapterScorporations Article9-A,Article22,andArticle32permitshareholdersofacorporation thathavemadeanelectionunderSubchapterSofChapter1oftheInternal RevenueCodetomakeasimilarelectionforNewYorkStatepurposes. FordetailedinformationontheNewYorkStateelection,seeFormCT-6-I, Instructions for Form CT-6. CorporationsrequiredtoregisterforasalestaxCertificateofAuthority Toselltangiblepersonalpropertyorcertaintaxableservices,acorporation mustregisterforsalestaxpurposeswiththeTaxDepartmentandhavea validCertificate of Authority.Acorporationmustalsoregisterforsalestax purposestoissueoracceptmostNewYorksalestaxexemptiondocuments. Formoreinformationonspecificsalestaxregistrationrequirements,see Publication750,A Guide to Sales Tax in New York State. ToobtainaCertificate of Authoritytocollectsalestax,complete FormDTF-17,Application to Register for a Sales Tax Certificate of Authority, orfileanonlineapplicationatwww.nys-permits.org.



FranchiseTaxReturnInformation

Generalinformation
NewYorkStatebusinesscorporations(Article9-A)
AllgeneralbusinesscorporationsorganizedunderthelawsofNewYork StatearetaxableunderTaxLawArticle9-A. Ageneralbusinesscorporationincludesallcorporationsexceptthefollowing: Taxableunder · Bankingcorporations...................................Article32 . · Insurancecorporations.................................Article33 · Certaintransportationandtransmission corporations.............................................. Article9,sections183and184 · Certainutilities .............................................Article9,sections186and186-A . · Farmersandagricultureco-ops...................Article9,section185 . · Not-for-profitcorporationssubjectto unrelatedbusinesstax..............................Article13

Reportingperiods
Generally,thetaxyearforwhichthefranchisetaximposedbyArticle9-Ais tobecomputed,andforwhichafranchisetaxreturnistobefiled,mustbe thesameasthetaxpayer'staxyearforfederalincometaxpurposes. Thefirstfranchisetaxreturnforadomesticbusinesscorporation (incorporatedinNewYorkState)isduefromthedateofincorporation, asrecordedbytheSecretaryofState.Afranchisetaxreturnforaforeign businesscorporation(incorporatedoutsideofNewYorkState)isdue duringtheperiodinwhichitisdoingbusiness,owningorleasingproperty, ormaintaininganofficeinNewYorkState.Reportingperiodsmaynot exceeda12-monthperiod.Thereturnmustbefiledwithin2½monthsafter thecloseofthecorporation'staxperiod.Ifyouarereportingforthecalendar year,yourreturnisdueonorbeforeMarch15.Ifyourfilingdatefallson aSaturday,Sunday,orlegalholiday,thenyoumustfileyourreturnonor beforethenextbusinessday. Extensionsifyoucannotmeetthefilingdeadline Ifyoucannotmeetthefilingdeadline,youmayrequestasix-month extensionoftimebyfilingFormCT-5,Request for Six-Month Extension to File (for franchise/business taxes, MTA surcharge, or both), andpaying yourproperlyestimatedfranchisetaxandMTAsurchargeonorbeforethe originalduedateofthereturn. YoumayrequestuptotwoadditionalextensionsbyfilingFormCT-5.1, Request for Additional Extension of Time to File (for franchise/business taxes, MTA surcharge, or both). Fileitonorbeforetheexpirationdateofthe originalextensionorpreviouslyfiledadditionalextension. FormCT-3M/4M,General Business Corporation MTA Surcharge Return FormCT-3M/4MmustbefiledbyanycorporationtaxableunderArticle9-A thatdoesbusiness,employscapital,ownsorleasesproperty,ormaintains anofficeintheMetropolitanCommuterTransportationDistrict(MCTD).The MCTDincludesthecountiesofNewYork,Bronx,Kings,Queens,Richmond, Dutchess,Nassau,Orange,Putnam,Rockland,Suffolk,andWestchester. Domesticbusinesscorporations Adomesticbusinesscorporationisgenerallyliableforfranchisetaxesunder Article9-Aforeachfiscalorcalendaryear,orpartthereof,duringwhichit isincorporateduntilitisformallydissolvedwiththeDepartmentofState (www.dos.state.ny.us). However,adomestic businesscorporationthatis nolongerdoingbusiness,employingcapital,orowningorleasingproperty inNewYorkStateisexemptfromthefixeddollarminimumtaxforyears followingitsfinaltaxyearandisnolongerrequiredtofileafranchisetax returnprovideditmeetstherequirementslistedinTSB-M-06(5)C,Certain Domestic Business Corporations Exempt from the Article 9-A Fixed Dollar Minimum Tax. Voluntarydissolutionofdomesticbusinesscorporation Inordertodissolveadomesticcorporation,thecorporationmustreceive consentfromtheTaxDepartment.TheTaxDepartmentwillnotconsentto thedissolutionofabusinesscorporationunlessalloftherequiredNewYork Statefranchisetaxreturnsarefiledanditsfranchisetaxesarepaid.Also,any liabilityforothertaxesadministeredbytheTaxDepartmentmustbesatisfied.