Tax Alert: Additional Guidance on Filing MCTMT Protective Claims

By Steven P. Bryde  |  October 22, 2012  |  Download PDF

This is an update to the Marks Paneth Tax Alert issued on August, 28, 2012 addressing the New York State (NYS) Supreme Court decision, Mangano, et al. v. Silver, et al., which held the NYS Metropolitan Commuter Transportation Mobility Tax (MCTMT) to be unconstitutional and that employers located in the the Metropolitan Commuter Transportation District (MCTD) who have been paying this tax since its effective date, March 1, 2009, should file protective refund claims on or before November 2, 2012. At the time of the August alert, NYS had not issued guidance on the proper procedure, so we recommended that taxpayer/employers file amended Forms MTA-305 in paper form.

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About Steven P. Bryde, JD

IRS Circular 230 Disclosure

Alert Information

This is an update to the Marks Paneth Tax Alert issued on August, 28, 2012 addressing the New York State (NYS) Supreme Court decision, Mangano, et al. v. Silver, et al., which held the NYS Metropolitan Commuter Transportation Mobility Tax (MCTMT) to be unconstitutional and that employers located in the the Metropolitan Commuter Transportation District (MCTD) who have been paying this tax since its effective date, March 1, 2009, should file protective refund claims on or before November 2, 2012. At the time of the August alert, NYS had not issued guidance on the proper procedure, so we recommended that taxpayer/employers file amended Forms MTA-305 in paper form.

The New York State Department of Taxation and Finance (the Department) just updated their website late last Wednesday, October 17, 2012, advising taxpayers that there are only three acceptable ways that a taxpayer may file a protective refund claim for the MCTMT. These are as follows:

  1. If the employer has an online service account, login and file through their services menu;
  2. Complete an electronic form or
  3. Call the automated telephone application at 518-485-2392. When prompted, dial 1 and have your NYS ID number and ZIP code of your business address available. Once completed, you will receive a confirmation that the claim has been filed.

NYS has made it clear for the first time on October 17, 2012, that there is “no paper refund option” and if a taxpayer has so filed a paper protective claim by amending the original MTA-305, it will not be a valid claim and the taxpayer/employer must re-file its claim using one of the above methods on or before November 2, 2012.

For self-employed individuals located in the MCTD, the protective claim must be filed by any of the above methods as well. The self-employed individual returns (i.e., Form MTA-6 or the composite return Form MTA-505) were originally due on or before April 30, 2010, so the time to file for the protective claim is the earlier of three years after such return was actually filed or April 30, 2013.

Our tax professionals can help you file a protective refund claim.

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If you have questions about the MCTMT or filing a protective refund claim as well as any state or local tax matter, please contact Steven P. Bryde by phone at 212.503.8806 or by email at sbryde@markspaneth.com.

About Steven P. Bryde, JD

Tax Principal Steven P. Bryde, JD, is a recognized state and local tax (SALT) specialist with approximately 25 years of public accounting experience. He has worked in both global and regional public accounting firms. His broad background also includes over seven years of experience working in industry as a tax attorney for a global energy corporation.

Mr. Bryde uses his state and local tax expertise across the 50 states to benefit the firm’s clients by developing tax-saving ideas as well as providing counsel on mergers and acquisitions, business-entity choice/formation and tax controversy representation. He also offers guidance on SALT planning for foreign inbound and US outbound clients.

IRS Circular 230 Disclosure

Treasury Regulations require us to inform you that any Federal tax advice contained in this communication is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

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About Steven P. Bryde

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Steven P. Bryde, JD, is a Senior Consultant in the Tax Practice at Marks Paneth LLP. He specializes in state and local taxation for corporations and flow-thru entities in a cross section of industries as well as for individuals. With more than 30 years of tax experience, Mr. Bryde has spent nearly his entire career in public accounting. Over the years, he has held positions at both global and regional accounting firms. Among his accomplishments... READ MORE +


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