Ira,
 
Just noticed that the NY tax forms are available on the site. I am reviewing (recall from our prior correspondence that I said I never filed one of these before) and I have some follow up questions.
 
I reviewed the 204 instructions and do not believe our club has new york source income. However the automated forms seem to contradict itself.
 
On IT-204 section 1 part B 1) the box is checked "no". Then nothing was filled in for b2 even though we have a number of resident partners. Do I have to fill this in by hand?
 
Then the part that seems to contradict itself. In Section 10 line 118 the box is checked yes. (for income earned in NY). Also nothing is listed for place of business in part 1 of section 10. We don't have an office so I assume we leave this blank?
 
Aren't section 1 and section 10 saying two different things?
 
I read the instructions to IT 204 and am confused. I do not think our club has income from NY sources. We do not have "income attributable to a "business, trade, profession or occupation in NY state". That definition per 204 requires that the club maintain or operate a office, shop, warehouse or other place in NY where its affairs are systematically and regularly carried out. We are not a hedge fund with a management team that is taking a portion of the profits to run the business. We have no office.
 
Maybe I am reading the 204 to liberally but I don't see how an investment club would be subject to NY tax. Our ny members will declare gains/losses under schedule b and d of federal form and this flows through to NY state form. How do out of state club members have to file in ny?
 
Also, does it automatically calculate a 204.1 form? Our club does not have a corporate partner so we don't need to file this form, right?
 
Thanks for your patience and any advice you can give on this. I really appreciate it.
 
 
 
IraS1@aol.com wrote:
> I would just begin filing now and not do anything about the past years. If
> NYS should question you, you can explain what happened and beg for mercy. It
> will probably work.
>  
> Ira Smilovitz
>  
>
> In a message dated 02/25/08 11:32:14 P.M. Eastern Standard Time,
> loutaormina@bivio.com writes:
> 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. 
>
>
>
>
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