2023 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, 2029
* §  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, 2029