General.

(1) The amount of New York State separate tax imposed on the ordinary income portion of a lump sum distribution received by a resident individual, estate or trust on or after January 1, 1977 (see section 601-C of the Tax Law) is determined in accordance with the provisions of subdivision (b) of this section. This separate tax must be computed on form IT-230, New York State Separate Tax on Lump Sum Distributions (Special 10-Year Averaging Method), except in cases where there is more than one recipient of the lump sum distribution. In such cases, the separate tax must be computed on form IT-230.1, New York State Separate Tax on Lump Sum Distributions (Multiple Recipient Special 10-Year Averaging Method).

(2) Married individuals who file separate New York State personal income tax returns, whether on one form or on separate forms, must compute their New York State separate tax on the ordinary income portion of lump sum distributions on separate form IT-230 or IT-230.1. The New York State separate tax on the ordinary income portion of lump sum distributions must be computed using the tax rates applicable for the taxable year provided in section 602 of the Tax Law. The completed form IT-230 or IT-230.1 must be attached to the taxpayer's New York State personal or fiduciary income tax return filed for the taxable year.