20 NYCRR § 4-4.8
Rules for intermediary transactions
# (a)
In the case of intermediary transactions, in applying the where benefit received method or the delivery destination method of the hierarchy, the location where the receipt is apportioned is based on the location of the consumers, rather than the business customer. If the corporation uses reasonable approximation based on the sourced receipts method to apportion its receipts from an intermediary transaction, it must apply that method only taking transactions with that particular business customer into consideration.
# (b)
In determining where the benefit is received or the delivery destination, the corporation is required to make inquiries to the business customer, but not to the consumers, regardless of the number of business customers the corporation has or the percentage of receipts from any one business customer, in order to determine the amount of receipts to apportion to New York State based on the location of the consumers. Such inquiries may be fulfilled by the business customer providing information from its books and records to the corporation that demonstrates the relevant information.
# (c)
If, after exercising due diligence, the corporation has inadequate information to determine the location of the consumers, the corporation should determine where the benefit is received or delivery destination based on the business customer. If, after exercising due diligence, the corporation has inadequate information to determine the location of either the consumers or the business customer, the corporation must then use the preceding taxable year method (see section 4-4.9 of this Subpart).
# (d)
This section does not apply in instances where the business address presumption applies. In instances where the business address presumption applies, the receipts shall be apportioned to the billing address of the business customer.
Source: official source document (DTF adopted rule text, December 2023 corporate reform)
In this part (40 sections)
- 4-1.7 · Federal changes
- 4-2.1 · Receipts and net gains from the sale of tangible personal…
- 4-2.2 · Net gains from the sale of real property
- 4-2.3 · Receipts from rents and royalties
- 4-2.4 · Net income from qualified financial instruments for…
- 4-2.5 · Interest income and net gains from loans
- 4-2.6 · Interest income and net gains from asset backed securities and…
- 4-2.7 · Interest income and net gains from corporate bonds
- 4-2.8 · Net interest income from reverse repurchase agreements and…
- 4-2.9 · Net interest income from Federal funds
- 4-2.10 · Net income from commodities
- 4-2.11 · Marked to market net gains
- 4-2.12 · Interest income, net gains, and other income from other…
- 4-2.13 · Brokerage commissions
- 4-2.14 · Receipts from credit cards and similar activities
- 4-2.15 · Receipts received by credit card processors
- 4-2.16 · Receipts from railroad, trucking and omnibus businesses
- 4-2.17 · Receipts from the sale of advertising
- 4-3.1 · Definitions
- 4-3.2 · General Principles
- 4-3.3 · Special rules for determining primary use location
- 4-3.4 · General rule for determining primary use location
- 4-3.5 · Reasonable approximation based on customer information
- 4-3.6 · Reasonable approximation based on general information
- 4-3.7 · Where received method
- 4-3.8 · Rules for intermediary transactions
- 4-3.9 · Preceding taxable year method
- 4-3.10 · Current taxable year method
- 4-3.11 · Examples
- 4-4.1 · Definitions
- 4-4.2 · General Principles
- 4-4.3 · Special rules for determining where the benefit is received
- 4-4.4 · General rule for determining where the benefit is received
- 4-4.5 · Reasonable approximation based on customer information
- 4-4.6 · Reasonable approximation based on general information
- 4-4.7 · Delivery destination method
- 4-4.8 · Rules for intermediary transactions
- 4-4.9 · Preceding taxable year method
- 4-4.10 · Current taxable year method
- 4-4.11 · Examples