IT-260.1: Change of Resident Status - Special Accruals (Revision 2015-09)
New York · NY DTF · Used for tax years 2025
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 who elect to file for the period before the change on a cash receipts basis. It records the tax deferred by the election a
Who files this form
Form IT-260.1 is an agreement for taxpayers who have changed from resident to nonresident status for New York State and/or New York City personal income tax purposes and elect to file their return for the period before the change on the cash receipts basis.
Under the agreement, the taxpayer provides security for the deferred tax and agrees to report income and gain accrued before the move on later New York returns as if their resident status had not changed.
What you'll need
Prepare three copies of the agreement, your completed Form IT-201, IT-203, or IT-205, and other required forms. You will also need your name, address as shown on your return, date of residency change, and the amount by which your tax would have increased without the election.
Include the securities and supporting documents that apply to your agreement:
- 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 political subdivision bonds: A completed 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 It must identify the accounts, confirm that principal cannot be withdrawn without the department’s written consent, and state that the institution’s right of set-off for a defaulted obligation is subordinate to the department’s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.
- 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
- Complete the agreement in triplicate, meaning three copies. If filing a joint return, use both names.
- Sign and date the agreement. Your spouse must also sign if you are filing a joint return.
- Send the agreement by registered mail, along with your securities, completed Form IT-201, IT-203, or IT-205, and other required forms, to:
`text
INCOME TAX AUDIT ADMINISTRATOR I IFDAB
W A HARRIMAN CAMPUS
ALBANY NY 12227-4299
`
Common mistakes
- Preparing only one copy: The form directs you to complete the agreement in triplicate.
- Leaving out a name on a joint return: The form says to use both names and includes a spouse’s signature line for joint returns.
- Sending the agreement alone: The mailing directions require your securities, completed Form IT-201, IT-203, or IT-205, and other required forms.
- Using a mailing method other than registered mail: The form specifically directs you to use registered mail.
Questions people ask
What must I report on later New York returns?
You agree to include all income and gain accrued before your residency change in subsequent New York personal income tax returns, as if you had not changed your resident status, and pay the tax when due.
What happens if I do not follow the agreement or my security becomes inadequate?
If the department determines that you omitted required income or gain, failed to pay required tax, or provided security that has become or will become inadequate, the additional tax for the period before your residency change becomes due immediately. The agreement allows the department to dispose of the security if you do not pay the tax or replace inadequate security, as applicable, within 30 days after the relevant notice is mailed. Proceeds may be applied to the deferred tax, interest, and penalties, with any balance returned 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 that it is no longer needed because of full or partial payment of the deferred tax.
Who receives interest earned on the security?
Interest accruing on the security belongs to you. For certificated bonds in coupon form, coupons will be detached and forwarded to you as they become due.