20 CRR-NY 3-9.7NY-CRR
STATE COMPILATION OF CODES, RULES AND REGULATIONS OF THE STATE OF NEW YORK
TITLE 20. DEPARTMENT OF TAXATION AND FINANCE
CHAPTER I. FRANCHISE AND CERTAIN BUSINESS TAXES
SUBCHAPTER A. BUSINESS CORPORATION FRANCHISE TAX
PART 3. METHODS OF COMPUTING TAX
SUBPART 3-9. DOMESTIC INTERNATIONAL SALES CORPORATION (DISC)
20 CRR-NY 3-9.7
20 CRR-NY 3-9.7
3-9.7 Rules for treatment of earnings and profits.
(a) For purposes of article 9-A, the earnings and profits of a DISC or of a former DISC are deemed to be divided into the following three categories:
(1) accumulated DISC income which includes its earnings and profits which have been deferred from taxation, as defined in paragraph (b) of section 1.996-3 of the Federal income tax regulations (27 CFR 1.996-3[b]);
(2) previously taxed income which includes earnings and profits which have been previously taxed by reason of having been deemed distributed, as defined in paragraph (c) of section 1.996-3 of the Federal income tax regulations (26 CFR 1.996-3[c]); and
(3) other earnings and profits which includes earnings and profits which were derived by the corporation in taxable years when it was not qualified as a DISC, as defined in paragraph (d) of section 1.996-3 of the Federal income tax regulations (26 CFR 1.996-3[d]).
(b) Any actual distribution to a stockholder which is made out of the earnings and profits of a DISC or a former DISC shall be treated as made in the following order:
(1) first, out of previously taxed income;
(2) second, out of accumulated DISC income; and
(3) third, out of other earnings and profits.
(c) If for any taxable year a DISC, or a former DISC, incurs a deficit in earnings and profits, such deficit shall be charged in the following order:
(1) first, to other earnings and profits;
(2) second, to accumulated DISC income; and
(3) third, to previously taxed income.
20 CRR-NY 3-9.7
Current through February 28, 2023
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IMPORTANT NOTE REGARDING CONTENT CURRENCY: The "Current through" date indicated immediately above is the date of the most recently produced official NYCRR supplement covering this rule section. For later updates to this section, if any, please: consult editions of the NYS Register published after this date; or contact the NYS Department of State Division of Administrative Rules at [email protected]. See Help for additional information on the currency of this unofficial version of NYS Rules.