State of New York are designed to allocate to the State of New York on a fair and equitable basis a proportion of such income earned from sources both within and without the State. Any nonresident may submit an alternative basis of apportionment with respect to his own income and explain that basis in full in his return. If approved by the Comptroller, that method will be accepted instead and in place of the one herein prescribed.

ALLOWANCE OF DEDUCTIONS AND CREDIT

ART. 481. Allowance of deductions to a nonresident.- Unless a nonresident individual shall render a return of income as required in article 523, the tax shall be collected on the basis of his gross income (not his net income) from sources within the State of New York. Where a nonresident has income from sources within the State of New York, and a return of income shall not be filed by him or on his behalf, the Comptroller will cause an estimate of the taxable income of such nonresident taxpayer to be made, such estimate to include the income of such nonresident from all sources within the State of New York concerning which he has information, and for such purpose may examine or cause to be examined the books, accounts and records of such taxpayer and he will then compute the tax of such nonresident taxpayer without allowance for deductions or credit and with penalties and interest. (Tax Law, sections 367 and 373 and article 556.)

ART. 482. Allowance of credit for taxes.-A taxpayer not a resident of the State of New York who has become liable to income tax to the State or country wherein he resides, upon his net income for the taxable year derived from sources within the State of New York, shall be credited with such proportion of the tax payable by him to the State or country wherein he resides as his income subject to taxation under the New York State Income Tax Law bears to his entire income upon which the tax so payable to such other State or country was imposed; provided such credit shall be allowed only if the laws of such State or country grant a substantially similar credit to residents of New York State subject to income tax under such laws. (Tax Law, section 363.)

Amount of "taxes payable" means taxes only (no credit being given for amounts representing interest or penalties) paid or accrued during the taxable year on behalf of the individual claiming credit. "Other State or country" includes within its meaning territories, possessions, states (other than New York State) and any foreign sovereignty.

ART. 483. Conditions of allowance of credit. When credit is sought for income taxes paid to other States or countries pursuant to the Tax Law, section 363, (See article 482) the Income Tax return form of the individual must be carefully filled out with all the information called for therein, the calculation of credit indicated, and executed as provided therein. When the Comptroller receives proof that any other State or country allows a substantially similar credit to residents of this State within the meaning of section 363 of the Tax Law, that fact will be announced from time to time by amendment to this article.

ART. 484. Redetermination of tax when credit proves incorrect. -In case credit has been taken and allowed for taxes accrued, or a proportionate share thereof, and the amount that is actually paid on account of such taxes, or a proportionate share thereof, is not the same as the amount of such credit, or in case any tax payment credited is refunded in whole or in part, the taxpayer shall immediately notify the Comptroller. The Comptroller will thereupon redetermine the amount of the income tax of such taxpayer for the year or years for which such incorrect credit was granted. The amount of tax, if any, due upon such redetermination shall be paid by the taxpayer upon notice and demand by the Comptroller. The amount of tax, if any, shown by such redetermination to have been overpaid shall be immediately refunded to him. (Tax Law, section 377 and articles 571–574.)

GENERAL PROVISIONS

RESIDENCE

ART. 501. Who is a resident.—For the purpose of the Income Tax Law, a resident of New York State is a natural person, who has a fixed and settled abode in this State to which he returns from incidental and temporary absences and from which he has no present intention of removing. Such residence may not be, nor be intended to be, of long duration if it be fixed and settled and to continue for the time necessary to accomplish some business or other purpose and is not merely transient. A taxpayer's residence for purposes of taxation is not necessarily his domicile for election purposes, as he may be domiciled outside the State and still be taxable as a resident of the State. As the question of residence is largely determined by the intent of the taxpayer and by the facts in each case, the Comptroller may require a statement of the circumstances to aid him in determining whether the individual be a resident or nonresident.

ART. 502. Who is a nonresident. "Nonresident" means an individual whose residence is not within the State of New York. Any individual living in the State of New York who is not a mere transient is a resident of the State of New York for purposes of the Income Tax. Whether he is a transient or not is determined by his intentions with regard to his stay. If he lives in the State of New York and has no definite intention to leave or reside elsewhere, he is a resident. The best evidence of his intention is afforded by the conduct, acts and declarations of the individual. The typical transient is one who stops for a short time in the course of a journey through the State of New York, sometimes performing labor, sometimes not, or one who enters such State intending only to stop long enough to carry out some purpose, object or plan not involving an extended stay. A mere floating intention, indefinite as to time, to return to another State or country, is not sufficient to constitute him a transient.

ART. 503. Proof of residence. An individual's statements as to his intention with regard to residence are not conclusive, but

when unequivocal will determine the question of his intention, unless his conduct, acts or other surrounding circumstances contradict the statements. It sometimes occurs that an individual who genuinely intends his stay to be transient may put off his departure from time to time by reason of changed conditions, remaining a transient though living in the State of New York for a considerable time. The fact that an individual's family is without the State does not necessarily indicate that he is a transient rather than a resident. An individual who enters this State intending to make his home elsewhere as soon as he has accumulated a sum of money sufficient to provide for his journey to a point without the State is not to be considered a transient even though his expectation in this regard may reasonably, considering the rate of his saving, be fulfilled within a comparatively short time.

ART. 504. Loss of residence. It will be presumed that an individual who has established a residence in the State of New York, as outlined above, continues to be a resident until he or his family establish a residence without the State. (Articles 501 and 502.)

INDIVIDUAL RETURNS

ART. 521. Resident individual returns.- Every resident individual (including a head of a family) whose net income as defined in the Tax Law, sections 357 and 358, and articles 11-14, is $1,000 or over for the taxable year must make a return of income unless married and living with husband or wife as defined in article 207. The return shall be for his taxable year, whether calendar or fiscal. Whether or not an individual is the head of a family or has dependents is immaterial in determining his liability to render a return. If an individual is a married person living with husband or wife, no return need be made where their aggregate net income is less than $2,000; but a separate return must be made by each of them, regardless of the amount of the individual income of each, where their aggregate net income is $2,000 or over, unless they join in a single return. The husband shall include in his return the income derived from services rendered by the wife or from the sale of products of her labor if she does not file a separate return or join with him in a return

setting forth her income separately. For returns by partnerships see Tax Law, section 368, and articles 230 and 231; by fiduciaries, see Tax Law, section 369, and articles 246-250. When specifically directed by the Comptroller an individual must file the return of his income whether or not such income is subject to taxation under this law. (Tax Law, section 373.)

ART. 522. Form of return for residents. The return shall be on Form 201 unless the taxpayer's entire gross income is derived from personal services, interest and dividends or from partnerships, estates and trusts. The return shall be on Form 200 if the taxpayer's gross income is derived from personal services, interest and dividends or from partnerships, estates and trusts, but any taxpayer may make a return of his income on Form 201. Forms are provided by the Comptroller and may be had at any office of the State Comptroller. When by reason of illness, absence, minority, nonresidence or otherwise the person liable for the return is unable to make it, the return may be made by an agent, guardian or other person charged with the care of the person or property of such taxpayer, the agent assuming the responsibility for making the return and incurring liability to the specific penalties provided for erroneous, false or fraudulent returns. (Tax Law, section 376, and article 556.)

ART. 523. Nonresident individual returns.- Every nonresident individual (including the head of a family) whose net income, as defined in the Tax Law, sections 357 and 358, articles 11-14, from sources within the State of New York as defined in article 401, is $1,000 or more for the taxable year, must make a return of income unless married and living with husband or wife as defined in article 207. The returns shall be for the taxable year, whether calendar or fiscal. Whether or not an individual is the head of a family or has dependents is immaterial in determining his liability to render a return. If a nonresident individual is a married person living with husband or wife, no return need be made where the aggregate net income from sources within the State is less than $2,000, but a separate return must be made by each of them, regardless of the amount of the individual income of each, where the aggregate net income from sources within the State is $2,000 or over, unless they join in a single return.