New York Updates Tax-Exempt Bond Interest Reporting Information

May 11, 2018 Paul Ogawa

The New York State Department of Taxation recently updated their website in relation to state and local government tax exempt bond interest information reporting. This type of reporting is used to report interest and dividend payments made to recipients which are derived from tax exempt sources like state and local government bonds.

 

The updated language provides greater specificity to the previous version of these specifications, although only a few material additions were made in the most recent version.

  • File formats should include the T, A, B, C, and F records:
  • In the A – Payer Record, include code B in Position 26 (instead of “6”).
  • In the B – Payee Record, report interest and dividend proceeds, including any accrued interest, in Positions 67-78.
  • In the B – Payee Record, report percentages attributable to New York State, Puerto Rico, Guam, American Samoa, the U.S. Virgin Island, and the Northern Mariana Islands in Positions 663-667.
    • This section previously started in Position 627, which is no longer compliant based on the current specifications;
    • American Samoa and the Northern Mariana Islands were added to this section;
    • Percentages should be rounded after four positions: for example, 25.40% will read as “02540” in the transmittal.
  • Specifications for dollar value fields were also added:
    • All dollar value fields are fixed length 12 numeric character fields.
    • Do not use dollar signs ($) or commas. 
    • Right-justify, zero-fill (for example, $10,987,654.32 = ‘001098765432’; $300 = ‘000000030000’). 
    • Do not use decimal points (.) to indicate dollars and cents (for example, $1,234.56 = ‘000000123456’).
    • Use double zeroes for cents to pad out whole dollars amounts (for example, $100 = ‘000000010000’; $5 = ‘000000000500’; $987.65 = ‘000000098765’). 
  • Corrections for reports already transmitted should be resubmitted as a complete file. Also, a separate e-mail notification of the correction must be sent to Securities@tax.ny.gov.

To review these instructions and specifications further, please click here.

About the Author

Paul Ogawa is a Junior Regulatory Counsel at Sovos Compliance. As part of the Regulatory Analysis team, his main areas of focus are state and federal tax withholding, the Affordable Care Act (ACA), and Canadian tax information reporting. Prior to Sovos, Paul worked as a litigation attorney in Boston area law firms, representing clients in insurance subrogation claims, family law matters, and employment disputes. Paul is a member of the Massachusetts Bar, earned his B.A. from Brandeis University and his J.D. from the Suffolk University Law School.

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