NY Tax L § 29 (2021)
2021 New York Laws TAX - Tax Article 1 - Short Title; Definitions; Miscellaneous 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:  (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