N.Y. Tax Law 29 – Mandatory electronic filing and payment
* § 29. Mandatory electronic filing and payment. (a) For purposes of this section, the following terms have the specified meanings:
Terms Used In N.Y. Tax Law 29
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
(1) "Authorized tax document" means a tax document which the commissioner has authorized to be filed electronically, provided however that any return or report that includes one or more tax documents that cannot be filed electronically shall not be deemed to be an authorized tax document for purposes of this section.
(2) "Electronic" means computer technology.
(3) "Original tax document" means a tax document that is filed during the calendar year for which that tax document is required or permitted to be filed.
(4) "Tax" means any tax or other matter administered by the commissioner pursuant to this chapter or any other provision of law.
(5) "Tax document" means a return, report or any other document relating to a tax or other matter administered by the commissioner.
(6) "Tax return preparer" means any person who prepares for compensation, or who employs or engages one or more persons to prepare for compensation, any authorized tax document. For purposes of this section, the term "tax return preparer" also includes a payroll service.
(7) "Tax software" means any computer software program intended for tax return preparation purposes. For purposes of this section, the term "tax software" includes, but is not limited to, an off-the-shelf software program loaded onto a tax return preparer's or taxpayer's computer, an online tax preparation application, or a tax preparation application hosted by the department.
(b) (1) If a tax return preparer prepared more than one hundred original tax documents during any calendar year beginning on or after January first, two thousand seven, and if, in any succeeding calendar year that tax return preparer prepares one or more authorized tax documents using tax software, then, for that succeeding calendar year and for each subsequent calendar year thereafter, all authorized tax documents prepared by that tax return preparer must be filed electronically, in accordance with instructions prescribed by the commissioner.
(2) If a tax return preparer prepared authorized tax documents for more than ten different taxpayers during any calendar year beginning on or after January first, two thousand twelve, and if in any succeeding calendar year that tax return preparer prepares one or more authorized tax documents using tax software, then, for such succeeding calendar year and for each subsequent calendar year thereafter, all authorized tax documents prepared by that tax return preparer must be filed electronically, in accordance with instructions prescribed by the commissioner.
(c) If a taxpayer does not utilize a tax return preparer to prepare an authorized tax document, but instead prepares that document itself using tax software, then all authorized tax documents prepared by the taxpayer using tax software must be filed electronically, in accordance with instructions prescribed by the commissioner.
(d) The commissioner may require tax liability or other amount due shown on, or required to be paid with, an authorized tax document required to be filed electronically pursuant to subdivision (b) or (c) of this section to be paid by the taxpayer electronically, in accordance with instructions prescribed by the commissioner.
(e) Failure to electronically file or electronically pay. (1) If a tax return preparer is required to file authorized tax documents electronically pursuant to subdivision (b) of this section, and that preparer fails to file one or more of those documents electronically, then that preparer will be subject to a penalty of fifty dollars for each failure to electronically file an authorized tax document, unless it is shown that the failure is due to reasonable cause and not due to willful neglect.
(2) If a taxpayer is required to electronically file any authorized tax documents or electronically pay any tax liability or other amount due shown on, or required to be paid with, an authorized tax document required to be filed electronically pursuant to subdivision (b) or (c) of this section, and that taxpayer fails to electronically file one or more of those tax documents or electronically pay one or more of those liabilities or other amounts due, then that taxpayer will be subject to a penalty of fifty dollars for each failure to electronically file any authorized tax document or electronically pay any tax, unless it is shown that the failure is due to reasonable cause and not due to willful neglect. In addition, any taxpayer that fails to electronically file an authorized tax document for any tax will be subject to the penalty imposed under the applicable article for the failure to file a return or report, whether a paper return or report has been filed or not. Provided, however, that this subdivision shall not apply to an individual taxpayer with respect to his or her personal tax documents that are required by or pursuant to the authority of article twenty-two, thirty, thirty-A or thirty-B of this chapter.
(3) The penalties provided for by this subdivision must be paid upon notice and demand, and will be assessed, collected and paid in the same manner as the tax to which the electronic transaction relates. However, if the electronic transaction relates to another matter administered by the commissioner, then the penalty will be assessed, collected and paid in the same manner as prescribed by article twenty-seven of this chapter.
(4) If a taxpayer or tax return preparer fails to electronically file an authorized tax document when required to do so pursuant to subdivision (b) or (c) of this section, the taxpayer shall not be eligible to receive interest on any overpayment in accordance with the overpayment provisions of this chapter until such document is filed electronically. Provided, however, that this subdivision shall not apply to an individual taxpayer with respect to his or her personal tax documents that are required by or pursuant to the authority of article twenty-two, thirty, thirty-A or thirty-B of this chapter.
(f) The provisions of sections nine and ten of this chapter are not affected by this section and will remain in full force and effect.
(g) The commissioner is authorized to promulgate any regulations necessary to implement this section.
* NB Effective until December 31, 2024
* § 29. Mandatory electronic filing and payment. (a) For purposes of this section, the following terms have the specified meanings:
(1) "Authorized tax document" means a tax document which the commissioner has authorized to be filed electronically.
(2) "Electronic" means computer technology.
(3) "Original tax document" means a tax document that is filed during the calendar year for which that tax document is required or permitted to be filed.
(4) "Tax" means any tax or other matter administered by the commissioner pursuant to this chapter or any other provision of law; provided, however, that the term "tax" does not include the taxes imposed by, or pursuant to the authority of, articles twenty-two, thirty, thirty-A or thirty-B of this chapter.
(5) "Tax document" means a return, report or any other document relating to a tax or other matter administered by the commissioner.
(6) "Tax return preparer" means any person who prepares for compensation, or who employs or engages one or more persons to prepare for compensation, any authorized tax document. For purposes of this section, the term "tax return preparer" also includes a payroll service.
(7) "Tax software" means any computer software program intended for tax return preparation purposes. For purposes of this section, the term "tax software" includes, but is not limited to, an off-the-shelf software program loaded onto a tax return preparer's or taxpayer's computer, an online tax preparation application, or a tax preparation application hosted by the department.
(b) If a tax return preparer prepared more than one hundred original tax documents during any calendar year beginning on or after January first, two thousand seven, and if, in any succeeding calendar year that tax return preparer prepares one or more authorized tax documents using tax software, then, for that succeeding calendar year and for each subsequent calendar year thereafter, all authorized tax documents prepared by that tax return preparer must be filed electronically, in accordance with instructions prescribed by the commissioner.
(c) If a taxpayer does not utilize a tax return preparer to prepare an authorized tax document during any calendar year beginning on or after January first, two thousand eight, but instead prepares that document itself using tax software, then, for that calendar year and for each subsequent calendar year thereafter, all authorized tax documents prepared by the taxpayer using tax software must be filed electronically, in accordance with instructions prescribed by the commissioner.
(d) Any tax liability or other amount due shown on, or required to be paid with, an authorized tax document required to be filed electronically pursuant to subdivision (b) or (c) of this section must be paid by the taxpayer electronically, in accordance with instructions prescribed by the commissioner.
(e) Failure to electronically file or electronically pay. (1) If a tax return preparer is required to file authorized tax documents electronically pursuant to subdivision (b) of this section, and that preparer fails to file one or more of those documents electronically, then that preparer will be subject to a penalty of fifty dollars for each failure to electronically file an authorized tax document, unless it is shown that the failure is due to reasonable cause and not due to willful neglect.
(2) If a taxpayer is required to electronically pay any tax liability or other amount due shown on, or required to be paid with, an authorized tax document required to be filed electronically pursuant to subdivision (b) or (c) of this section, and that taxpayer fails to electronically pay one or more of those liabilities or other amounts due, then that taxpayer will be subject to a penalty of fifty dollars for each failure to electronically pay.
(3) The penalties provided for by this subdivision must be paid upon notice and demand, and will be assessed, collected and paid in the same manner as the tax to which the electronic transaction relates. However, if the electronic transaction relates to another matter administered by the commissioner, then the penally will be assessed, collected and paid in the same manner as prescribed by article twenty-seven of this chapter.
(f) The provisions of sections nine and ten of this chapter are not affected by this section and will remain in full force and effect.
(g) The commissioner is authorized to promulgate any regulations necessary to implement this section.
* NB Effective December 31, 2024