IT-260.1: Change of Resident Status - Special Accruals (Revision 2015-09)
New York · NY DTF · Used for tax years 2024
Form IT-260.1 is an agreement for taxpayers changing from resident to nonresident status for New York State and/or New York City personal income tax purposes. It records an election to report on the cash receipts basis for the period before the change, the resulting tax deferral,
Who files this form
Form IT-260.1 is an agreement for taxpayers who change from resident to nonresident status for New York State and/or New York City personal income tax purposes and elect to report on the cash receipts basis for the period before the change.
Under the agreement, you provide security for the additional tax that would have been due without the election. You also agree to report income and gain accrued before your move on later New York returns as if you had not changed your resident status.
What you'll need
Send three completed copies of the agreement, your securities, a completed Form IT-201, IT-203, or IT-205, and other required forms.
The supporting documents depend on the security you provide:
- Certificated U.S. Treasury bonds: A completed U.S. Treasury Form PDF 1832 assigning the securities to the New York State Department of Taxation and Finance.
- Certificated New York State or local government bonds: A completed New York State Form AU-217 assigning the securities to the department.
- Bank passbooks or certificates of deposit: A letter on the financial institution’s letterhead, signed by an officer. It must identify the accounts, confirm that principal cannot be withdrawn without the department’s written consent, and state that the institution’s right of set-off for a defaulted obligation is subordinate to the department’s interest in the collateral.
- Standby letter of credit: An irrevocable standby letter of credit payable to the department.
- Lottery payments with New York State tax withheld: A copy of completed federal Form W-2G showing the withholding.
How to file
- Enter your name, address as shown on your return, and the date your resident status changed. If filing a joint return, use both names.
- Enter the additional tax amount that would have applied without the election and describe the security you are providing.
- Attach the supporting documents for that security. Sign and date the agreement. Your spouse must also sign if you are filing a joint return.
- Complete the agreement in triplicate and send it by registered mail, along with your securities, completed Form IT-201, IT-203, or IT-205, and other required forms, to:
INCOME TAX AUDIT ADMINISTRATOR I IFDAB
W A HARRIMAN CAMPUS
ALBANY NY 12227-4299
Common mistakes
- Leaving out a spouse’s name on a joint return. The form reminds joint filers to use both names.
- Sending only one copy or using ordinary mail. The form directs you to complete the agreement in triplicate and send it by registered mail with the required enclosures.
- Failing to report covered income or pay the tax later. The agreement warns that this can make the recomputed additional tax immediately due.
- Not replacing inadequate security. If the department determines that the security is inadequate, the agreement requires acceptable replacement security within 30 days after notice is mailed. Otherwise, the department may dispose of the security and apply the proceeds to deferred tax, interest, and penalties.
Questions people ask
What income must I report on later New York returns?
You agree to include all income and gain accrued before your change of residence, as if you had not changed your resident status, and to pay the tax when due.
Can Form W-2G be part of the agreement?
Yes. The form provides for attaching a completed federal Form W-2G showing that New York State taxes were withheld on lottery payments.
Who receives interest earned on the security?
Any interest accruing on the deposited security belongs to you.
When will my security be returned?
If the security has not been disposed of under the agreement, it will be returned when the department determines it is no longer needed because of full or partial payment of the deferred tax.
Does this agreement extend the time for assessing tax?
Yes. You agree that tax may be assessed within three years after you file the return for the last taxable year in which you actually receive income or gain that accrued before your change of residence.