New York Form DTF-686 is an attachment used to report tax shelter reportable transactions with a New York State return. It is used when a taxpayer needs to disclose certain federal reportable transactions, certain New York reportable transactions, or both, depending on what applies to the filing. The form helps the Department of Taxation and Finance identify the type of transaction, the number of related IRS disclosure forms, and whether any New York-specific attachment forms are included. It also gathers basic taxpayer information, such as the name on the return, identification number, address, email address, and tax period. In some cases, a corporate filer must also provide a waiver of secrecy provisions so a consolidated disclosure can be made. Because this form is tied to disclosure rules, it should be completed carefully and filed with the correct tax return type.
How To File New York DTF-686
File Form DTF-686 with your business tax return, amended business tax return, personal income tax return, or amended personal income tax return, depending on the filing situation. Do not send it as a stand-alone form, because it is meant to be attached to the appropriate return. If the filing includes federal reportable transactions, attach the related IRS Forms 8886. If the filing includes New York reportable transactions, attach the related New York Forms DTF-686-ATT. Make sure the tax period, transaction types, and counts are complete before submitting the return.
How to Complete New York DTF-686 Form
Line 1: Name As Shown On Your Return
Enter the taxpayer name exactly as it appears on the return. Use the same name that is on the tax filing to avoid mismatches.
Line 2: Taxpayer Identification Number
Write the identification number shown on page 1 of the tax return. Use the exact number from the return being filed.
Line 3: Spouse’s Name
If this is a personal income tax return and a spouse applies, enter the spouse’s name here. Leave it blank if no spouse information is needed.
Line 4: Spouse’s Identification Number
If applicable, enter the spouse’s identification number. Use this field only when spouse information is required.
Line 5: Mailing Address
Provide the taxpayer’s mailing address, including the number and street or PO Box. Make sure the address is complete and current.
Line 6: City, Village, Town, Or Post Office
Enter the city, village, town, or post office for the mailing address. This should match the taxpayer’s mailing location.
Line 7: State
Write the state abbreviation for the mailing address. Use the correct state for the taxpayer’s address.
Line 8: ZIP Code
Enter the ZIP code for the mailing address. Make sure it is accurate and complete.
Line 9: Taxpayer’s Email Address
Provide the taxpayer’s email address. This gives the department a way to contact the filer if needed.
Line 10: Filing Statement
Review the statement that tells you to file this form with the correct type of tax return. This line is a reminder that the form must be attached to the proper return rather than mailed separately.
Line 11: Federal Reportable Transactions, Listed Transaction
Mark an X if the return includes a listed federal reportable transaction. Use this box only when that type applies.
Line 12: Federal Reportable Transactions, Confidential Transaction
Mark an X if the filing involves a confidential transaction. Check this box only when the transaction fits that category.
Line 13: Federal Reportable Transactions, Transaction With Contractual Protection
Mark an X if the federal reportable transaction has contractual protection. Select this box when that condition applies.
Line 14: Federal Reportable Transactions, Loss Transaction
Mark an X if the transaction is a loss transaction. This box should be checked only if the filing involves that type of reportable transaction.
Line 15: Federal Reportable Transactions, Transaction With Brief Assets Holding Period
Mark an X if the transaction involves a brief assets holding period. Use this box only when the federal transaction matches that description.
Line 16: Federal Reportable Transactions, Transaction Of Interest
Mark an X if the transaction is a transaction of interest. Check this box when the transaction fits that federal reporting category.
Line 17: IRS Forms 8886 Count
Enter the total number of IRS Forms 8886 attached to the form. Count only the forms actually included with the filing.
Line 18: Applicable Codes For Federal Listed Transactions
Enter the applicable codes for each federal listed transaction being reported. Use one box for each code and fill in the correct code from the instructions.
Line 19: New York Reportable Transactions, New York Listed Transaction
Mark an X if the filing includes a New York listed transaction. Select the box only when the New York category applies.
Line 20: New York Reportable Transactions, New York Confidential Transaction
Mark an X if the filing includes a New York confidential transaction. Use this box when the transaction meets that description.
Line 21: New York Reportable Transactions, New York Transaction With Contractual Protection
Mark an X if the filing includes a New York transaction with contractual protection. Check this box only when the New York transaction fits that type.
Line 22: New York Forms DTF-686-ATT Count
Enter the total number of New York Forms DTF-686-ATT attached to this form. Make sure the count matches the actual attachments.
Line 23: Tax Period Beginning
Enter the beginning date of the tax period. Use the date format shown on the form.
Line 24: Tax Period Ending
Enter the ending date of the tax period. This should match the filing period for the return.
Line 25: Waiver Of Secrecy Provisions Statement
Read the waiver statement carefully if it applies. This section is used for a consolidated disclosure and explains that the authorized officer agrees to the waiver of the secrecy provisions for the listed tax law sections.
Line 26: Authorized Officer Printed Name
Print the name of the authorized officer. This should be the person who is allowed to sign for the corporation.
Line 27: Signature Of Authorized Officer
The authorized officer must sign here. This signature confirms the waiver statement when the section applies.
Line 28: Official Title
Enter the officer’s official title. This shows the officer’s role in the corporation.
Line 29: Email Address Of Authorized Officer
Provide the authorized officer’s email address. This helps with contact if the department needs clarification.
Line 30: Telephone Number
Enter the authorized officer’s telephone number, including area code. Make sure the number is current and reachable.
Line 31: Date
Write the date the officer signs the form. Use the correct date format for the filing.
Filing Tips
Double-check that every transaction type is marked correctly before filing. Make sure the counts for Forms 8886 and DTF-686-ATT match the actual attachments included with the return. If the filing involves a consolidated disclosure, confirm that the officer authorized to waive secrecy provisions has signed the form. Keeping the form clean, complete, and attached to the correct return helps prevent processing delays.
FAQs
What Is Form DTF-686 Used For?
It is used to report tax shelter reportable transactions with a New York State return.
Do I File It Separately?
No, it must be attached to the correct tax return.
What Federal Form May Need To Be Attached?
IRS Form 8886 may need to be attached for federal reportable transactions.
Who Signs The Waiver Section?
An authorized officer of the corporation signs that section when it applies.