Ira,
 
Thank you for the response. I am a bit concerned now regarding my failure to file prior years 204 forms with NY state. Obviously, I will file going forward. As best as I can see, the amounts are the same as the k-1 from the fed so no member would have failed to disclose the proper taxes on either fed or state in past years.
 
What do you suggest regarding the prior years? Do I have to notify the state and see if I have to file old 204's. It would be a shame to have to incur a penalty for this (something like $50 per member per year would potentially bankrupt the club!) as again, there was no failure to pay the actual taxes on the individual's returns.
 
 
 
 
IraS1@aol.com wrote:
>  
>  
> In a message dated 02/24/08 11:12:02 A.M. Eastern Standard Time,
> loutaormina@bivio.com writes:
> I have
>
> been using Bivio since 2000 and have no recollection of having to wait for NY
> state tax forms.  Is this something new for 2007?  Did NY change its
> tax laws?
> Yes and no. You always had to file an IT-204 with NY. Bivio never provided
> NY state forms before this year. However, NY also made very significant changes
> to the IT-204 form and the various schedules and attachments. This is delaying
> the approval process from NYS DTF for all software suppliers, not just those
> that serve the investment club universe.
> I went
> to the NY State tax website and did a search for investment clubs and nothing
> comes up.  This is extremely frustrating.  I have always filed a
> 1065 with the Federal Government and provided my members with
> K-1s.
> That's because as far as NYS is concerned, investment clubs are
> partnerships (or LLCs or LPs, etc.) and don't otherwise merit special
> treatment.
> Have I
> screwed up somewhere with the state of NY?  The NY state IT-201
> individual tax form using flow through from the 1040 form for dividends,
> capital gains and interest so no ny member has failed to disclose income to
> that state of ny as we are a partnership and it flows through to the
> individual forms based on the k-1 that I have given out.
> If you haven't been filing an IT-204 Partnership Return each year, yes, you
> have screwed up with NYS.
> Also,
> the site continues to say that forms will be available in February for NY
> state.  Any idea about when in February as it currently isnt'
> posted?  There aren't many days left and I'm trying to figure out what I
> have been failing to do.
> Bivio is at the mercy of the NYS DTF. There is nothing you can do but wait
> for them to get approval from NYS. Or, you can go to the NYS DTF website and
> retrieve copies of the IT-204, IT-204-IP,and  IT-204-ATT and see what's
> coming.
>  
> Ira Smilovitz
>
>
> Delicious ideas to please the pickiest eaters. Watch the video on AOL Living.