1. (a) A taxpayer which reports on the basis of a calendar year for Federal income tax purposes must report on the same basis for purposes of article 9-A of the Tax Law. A calendar year is a period of 12 calendar months ending on December 31st, or a period of less than 12 calendar months beginning on the date a taxpayer becomes subject to tax and ending on December 31st. A calendar year also includes, in the case of a taxpayer which changes the period on the basis of which it keeps its books from a fiscal year to a calendar year, the period from the close of its last fiscal year to and including the following December 31st.

2. (b) A taxpayer shall use a calendar year as its accounting period and report on a calendar-year basis in the following situations:

   1. (1) the taxpayer keeps its books on the basis of a calendar year;
   2. (2) the taxpayer keeps its books on the basis of any period ending on any day other than the last day of a calendar month, except in the case of a taxpayer which keeps its books on the basis of a 52-53 week accounting period;
   3. (3) the taxpayer does not keep books;
   4. (4) the taxpayer is not required to file a Federal income tax return, unless the use of a fiscal year or 52-53 week period basis of reporting has been authorized by the Commissioner of Taxation and Finance; or
   5. (5) the taxpayer has made no election as to the use of either a fiscal-or calendar-year basis of reporting.

3. (c) A calendar-year taxpayer's first accounting period and its first taxable year ends on December 31, 1973 in each of the following examples. The taxpayer's first report must be filed on or before March 15, 1974. (See section 6-4.1 of this Title—Time for filing reports.)

   1. (1) A corporation is organized in New York State on October 23, 1973 and its certificate of incorporation is filed in the Office of the Secretary of State on the same date. The corporation becomes subject to tax on October 23, 1973, and its first accounting period and taxable year begins on that date irrespective of when the corporation starts to transact business.
   2. (2) A corporation is organized in New York State on December 31, 1973 and its certificate of incorporation is filed in the Office of the Secretary of State on the same day. The corporation's first accounting period and taxable year is one day, December 31, 1973, and the corporation must file a report based on such period.
   3. (3) A foreign corporation, which reports for Federal income tax purposes on a calendar-year basis, leases space for an office in New York City on February 6, 1973. Prior to February 6, 1973, the corporation did not do business, employ capital, own or lease property or maintain an office in New York State. The corporation hires personnel and opens its office in New York City on March 1, 1973. The corporation becomes subject to tax on February 6, 1973. Since the taxpayer reports for Federal income tax purposes on a calendar-year basis, its first taxable year for purposes of article 9-A of the Tax Law begins February 6, 1973, and its tax is computed on the basis of an accounting period which begins January 1, 1973 and ends December 31, 1973. (See section 4-6.4 of this Title—Short-period business allocation percentage.)

Tax Law, § 208(10)