IT-260: New York State and New York City Surety Bond Form - Change of Resident Status - Special Accruals (Revision 2015-09)
New York · NY DTF · Used for tax years 2024
Form IT-260 is a New York State and New York City surety bond for special accruals when a taxpayer changes resident status. It records the residence change, bond amount, and tax deferred, and secures future payment of the deferred tax.
Who files this form
Form IT-260 is for taxpayers who change resident status and elect not to report certain special accrual amounts on their return for the taxable period immediately before the change. The form states that a bond is required to secure future tax payments on the deferred income, calculated as if no change of residence had occurred.
What you'll need
The form calls for:
- The completed bond agreement in triplicate, meaning three copies.
- Acknowledgments by both the principal (the taxpayer) and the surety.
- The surety’s financial statement.
- A letter of tender.
- Form IT-201, IT-203, or IT-205.
You will also need the date of the residency change, the full addresses before and after the change, the applicable tax years, the bond amount, and the amount by which tax would have increased without the election.
How to file
Complete the agreement in three copies. Provide the principal’s and surety’s information, the residency-change details, and the tax and bond amounts. The form calls for the principal and surety to sign and seal the agreement, with the surety signing through an attorney-in-fact. If filing a joint return, use both names.
Add the acknowledgments and the surety’s financial statement. Send the agreement by registered mail, along with your letter of tender and Form IT-201, IT-203, or IT-205, to:
INCOME TAX AUDIT ADMINISTRATOR I
IFDAB
W A HARRIMAN CAMPUS
ALBANY NY 12227-4299
Common mistakes
- Preparing only one copy. The form says to complete the agreement in triplicate.
- Omitting acknowledgments by the principal or surety, or the surety’s financial statement.
- Leaving out the letter of tender or Form IT-201, IT-203, or IT-205 when mailing the agreement.
- Using a mailing method other than registered mail.
- Using only one name when filing a joint return. The form says to use both names.
- Trying to change or terminate the bond orally. The form states that its obligations cannot be changed or ended orally.
Questions people ask
What does the bond secure?
It secures future tax payments on income deferred because of the election following a change of residence. The tax is calculated as if no change of residence had occurred.
Who can serve as the surety?
The form describes the surety as a corporation authorized to transact business in New York State, with an office and usual place of business in New York.
When does the bond obligation become void?
Under the bond’s terms, the obligation becomes void if the principal pays the full deferred tax and any penalties and interest, or reports all the specified accruable items of income, gain, loss, or deduction for the applicable taxable years. Otherwise, the bond remains irrevocable and in full force and effect.
Can the bond be changed or ended through an oral agreement?
No. The form states that the obligations of the principal and surety may not be changed or terminated orally.