Fillable Nyc 245 Form in PDF

*30812291*

For CALENDAR YEAR ____________ or FISCAL YEAR beginning _________________________________ and ending _________________________________

TAXPAYER’S EMAIL ADDRESS

EMPLOYER IDENTIFICATION NUMBER

BUSINESS CODE NUMBER AS PER FEDERAL RETURN

NYC PRINCIPAL BUSINESS ACTIVITY

Signature of Officer:

ALLRETURNSEXCEPTREFUND RETURNS

NYC DEPT. OF FINANCE, GENERALCORPORATION TAX P.O. BOX 5564, BINGHAMTON, NY 13902-5564

30812291

Title:

RETURNSCLAIMINGREFUNDS

NYC DEPT. OF FINANCE, GENERALCORPORATION TAX P.O. BOX 5563, BINGHAMTON, NY 13902-5563

Date:

ENTER YOUR CORRECT

EMPLOYER IDENTIFICATION

NUMBER

NYC-245 2022

This report must be filed by any corporation that has an officer, employee, agent, or repre- sentative in the City and claims not to be sub- ject to the NewYork City General Corporation Tax or Business Corporation Tax. For taxable years beginning in 1996 and thereafter, entities taxable as corporations for federal income tax purposesunderIRC§7701(a)(3)and§7704are considered corporations for purposes of the General Corporation Tax. Acorporationsub-

jecttoGeneralCorporationTaxorBusiness Corporation Tax cannot use this form; it must file a General Corporation Tax return, Form NYC-4S, NYC-4S-EZ or NYC-3L or a Business CorporationTax return, Form NYC-2 orNYC-2S. See"CorporationsSubjecttoTax" below. The filing of this form does not con- stitute the filing of a return by the corpora- tion sufficient to start the running of the limitationsperiodforassessmentsoftax. To obtain the protection of the limitations pe- riod, a General Corporation Tax return or Business Corporation Tax return must be properly filed. A corporation that has ceased doing business in the City during the taxable year cannot use this form. Such a corporation must file a final return or request an extension of time to file a final return on or before the 15th day after the date that the corporation ceasestobesubjecttotheGeneralCorpora- tion Tax or Business Corporation Tax. See FormNYC-EXTandinstructionsforfurtherin- formation.

A corporation is not required to file this report if it falls under one of the following:

1)thecorporationisexemptfromtheGeneral CorporationTaxunder Section11-603.4or the Business Corporation Tax under Sec- tion 11-653(4) of theAdministrative Code;

2)the corporation has received a letter from the Department of Finance exempting it from tax as a nonstock, nonprofit corpora- tion (see instructions for line 5b below), provided there has been no change in its character, activities or federal tax status since the date of that letter;

3)the corporation’s only tie with New York Cityisthatoneormoreofthecorporation’s officers, employees, agents or representa- tives reside in the City or come into the City infrequently in connection with iso- lated transactions of the corporation;

4)the corporation is a Real Estate Mortgage Investment Conduit (REMIC); or

5)the corporation is exempt from Federal in- come tax under IRC section 501(c)(2) or (25).

WHENTOFILE

Any S corporation required to file this report mustdosoannually,onorbeforeMarch15thif itreportsonacalendaryearbasisforfederalin- cometaxpurposes,oronorbeforethe15thday of the 3rd month following the close of its fis- cal year if it reports on a fiscal year basis.

Any C corporation required to file this report must do so annually, on or beforeApril 15th if itreportsonacalendaryearbasisforfederalin- cometaxpurposes,oronorbeforethe15thday of the 4th month following the close of its fis- cal year if it reports on a fiscal year basis.

LINE5b

Every corporation claiming exemption from General Corporation Tax or Business Corpora- tion Tax as a nonstock, nonprofit corporation (except for corporations exempt from federal income tax under IRC Section 501(c)(2) and

(25)mustapplyforan exemption fromthe De- partment of Finance by submitting an applica- tion for exemption containing an affidavit setting forth the following information about the corporation:

1)the type of organization;

2)the purposes for which it is organized;

3)a description of its actual activities;

4)the source and disposition of its income;

5)whetheranyofitsincomeiscreditedtosur- plusormayinuretoanyprivatestockholder or individual; and

6)such other facts that may affect its right to exemption.

The affidavit must be supplemented by: a copy of the articles of incorporation or articles of association, a copy of the bylaws, copies of statementsshowingthecorporation'sassetsand liabilities and receipts and disbursements for themostrecentyear,aphotostaticcopyofalet- terfromtheUnitedStatesTreasuryDepartment granting the corporation an exemption from federalincometaxationandphotocopiesoffed- eral, state and local tax returns filed by the or- ganization for the three most recent preceding years.

All of the above information should be sent to:

NYCDepartmentofFinance ExemptionProcessingUnit 59MaidenLane,20thFloor NewYork,NY 10038

There is no prescribed application form and no application fee.

LINE6

If you answer "yes" to any question, the corpo- ration may be subject to General Corporation Tax or Business CorporationTax. See "Corpo- rations Subject to Tax" for more information. Corporations subject to tax cannot use this form.

LINE6g

If the answer to question 6g is “yes,” state on a rider what activities take place elsewhere in New York State that do not also take place in New York City, or other reasons for filing a State Franchise Tax Report.

LINE6h

If the answer is "yes," see section 11-04(b)(11) ofTitle19oftheRulesoftheCityofNewYork forinformationregardingtheapplicationofP.L. 86-272 to activities in New York City.

LINE6j

This question is only applicable to C corpora- tions. The term “deriving receipts from activ- ity” in New York City is defined in AdministrativeCodesection11-653(1)anddis- cussed below. Note that if a C corporation is a partner in a partnership that is deriving receipts from activity in New York City, it may be sub- ject to tax.

CORPORATIONSSUBJECTTOTAX

A corporation subject to General Corpora- tion Tax or Business Corporation Tax can- not use this form; it must file either Form NYC-4S, NYC-4S-EZ or NYC-3L (GCT) or Form NYC-2 or Form NYC-2S (Business Cor- porationTax). Sections11-603.1and11-653(1) of the Administrative Code provide that a cor- poration is subject to tax if it is:

1)doing business in New York City;

2)employing capital in New York City;

3)owning or leasing property in New York City, in a corporate or organized capacity;

4)maintaining an office in NewYork City; or

5)in the case of a C corporation, deriving re- ceipts from activity in New York City.

The term “doing business” is used in a com- prehensive sense and includesall activities that occupy the time or labor of people for profit. Regardless of the nature of its activities, every corporation organized for profit and carrying

out any of the purposes of its organization is deemed to be “doing business” for the purpose of the tax. In determining whether a corpora- tion is doing business, it is immaterial whether its activities actually result in a profit or a loss.

UndertheBusinessCorporationTaxapplicable to federal C Corporations for tax years begin- ning on or after January 1, 2015, a corporation is doing business in the city if:

(1)it has issued credit cards to onethousandor more customers who have a mailing ad- dress within the city as of the last day of its taxable year;

(2)it has merchant customer contracts with merchantsandthetotalnumberoflocations coveredbythosecontractsequalsonethou- sand or more locations in the city to whom thecorporationremittedpaymentsforcredit cardtransactionsduringthetaxableyear;or

(3)the sum of the number of customers de- scribed in item #1 plus the number of lo- cations covered by its contracts described in item #2 equals one thousand or more.

Additionally,fortaxyearsbeginningonorafter January 1, 2022, a corporation which does not meet the requirements of either (1), (2), or (3) above will be considered to be doing business inthecity,ifthecorporationhasatleasttencus- tomers,orlocations,orcustomersandlocations, as described above in (1), (2) and (3), the cor- poration is part of a unitary group AND if the number of customers, locations, or customers andlocations,withinthecityofthemembersof the unitary group that have at least ten cus- tomers,orlocations,orcustomersandlocations withinthecityintheaggregatemeetseither(1), (2), or (3) above.

For purposes of these provisions, the term “credit card” includes bank, credit, travel and entertainment cards. See Administrative Code Section 11-653(1)(c).

For tax years beginning on or after January 1, 2022, a C corporation will be subject to the Business Corporation Tax if it derives receipts from activity in the city and meets any one of the following:

(1)thereceiptswithinthecityare$1millionor more in a taxable year; or

(2)the corporation’s receipts from activity in thecityarelessthanonemilliondollarsbut at least ten thousand dollars in a taxable year and the corporation is part of a unitary group where the members that have at least

$10,000 of receipts within the city have, in the aggregate, receipts within the city of $1 million or more in a taxable year. SeeAd- ministrative Code Section 11-653.

Theterm“employingcapital”includesanyofa large variety of uses, which may overlap other categories and give rise to taxable status. In general,theuseof assetsinstrumentalinmain- tainingoraiding thecorporateenterpriseorac- tivity in the City will create liability. Employing capital includes activities such as:

a)maintaining stockpiles of raw materials or inventories; and

b)maintaining securities in the City for trad- ing purposes.

Under Sections 11-603.2 and 11-653(2) of the Administrative Code, a corporation is not con- sideredtobedoingbusiness,employingcapital, owning or leasing property, or maintaining an office in New York City by reason of:

a)the maintenance of cash balances with banks or trust companies or brokers in the City;

b)the ownership of shares of stock or securi- tieskeptintheCity,ifkeptinasafedeposit box, safe, vault or other receptacle rented for the purpose, or if pledged as collateral security, or if deposited with one or more banks or trust companies, or brokers who are members of a recognized security ex- change, in safekeeping or custody ac- counts;

c)the taking of any action by any such bank or trust company or broker which is inci- dental to the rendering of safekeeping or custodial service to the corporation;

d)the maintenance of an office in the City by oneormoreofficersordirectorsofthecor- poration who are not employees of the cor- poration as long as the corporation is not otherwise doing business or employing capital in the City and does not own or lease property in the City;

e)the keeping of books or records of a corpo- rationintheCityifthebooksorrecordsare not kept by employees of the corporation and the corporation is not otherwise doing business or employing capital in the City and does not own or lease property in the City; or

f)anycombinationoftheforegoingactivities.

In addition, a corporation will not be subject to the General Corporation Tax or Business Cor- poration Tax if its sole connection with New York City is:

(i)the maintenance of a statutory office at the address of its registered agent or the main- tenance of a mailing address; or

(ii)the mere ownership of shares of stock of corporations doing business in the City.

Under Administrative Code Section 11-653(2- a), an alien corporation is not considered to be doingbusiness,etc.intheCityifitsactivitiesin the City are limited solely to investing or trad- ing in stocks, securities or commodities for its ownaccountwithinthemeaningoftheInternal RevenueCode§864(b)(2)(A)or§864(b)(2)(B).

For purposes of the Business Corporation Tax, an alien corporation that under any provision of the Internal Revenue Code is not treated as a “domesticcorporation”asdefinedinIRC§7701 and has no effectively connected income for the taxable year pursuant to clause (iii) of the open- ing paragraph of Administrative Code §11- 652(8)isnotsubjecttotheBusinessCorporation Tax for that taxable year. For purposes of the Business Corporation Tax, an alien corporation is defined as a corporation organized under the laws of a country, or any political subdivision thereof, other than the United States, or organ- ized under the laws of a possession, territory or commonwealth of the United States. See Ad- ministrative Code Section 11-653(2-a).

NOTE: For additional guidance concerning what activities constitute "doing business," "employing capital," "owning or leasing prop- erty," and "maintaining an office" in NewYork City, see Sections 11-03 and 11-06 of Title 19 of the Rules of the City of New York. For ad- ditional information concerning corporations not subject to tax, see Section 11-04 of those rulesandAdministrativeCodeSections11-603 and 11-653.

REFUNDS: If a corporation has previously paidtaxormadeestimatedtaxpaymentsforthe taxable year and is filing this form disclaiming liability for those taxes, the corporation should file a refund claim and attach this form to that claim.