2023 New York Laws › TAX - Tax › Article 22 - Personal Income Tax › Part 4 - Returns and Payment of Tax › 658 - Requirements Concerning Returns, Notices, Records and Statements.

§   658.   Requirements   concerning  returns,  notices,  records  and
statements.  (a) General. The tax commission may  prescribe  regulations
as  to  the  keeping  of  records,  the  content and form of returns and
statements, and the filing of copies of federal income tax  returns  and
determinations.     The  tax  commission  may  require  any  person,  by
regulation or notice served upon such  person,  to  make  such  returns,
render  such statements, or keep such records, as the tax commission may
deem sufficient to show whether or not such person is liable under  this
article  for  tax  or  for  collection  of tax. The tax commission shall
provide a space on the  form  of  returns  wherein  the  taxpayer  shall
indicate the school district in which the taxpayer is a resident.
(b)  Identifying numbers.--(1) When required by regulations prescribed
by the tax commission:
(A) Inclusion in returns.-- Any person required under the authority of
this article to make  a  return,  statement,  or  other  document  shall
include  in  such  return,  statement or other document such identifying
number as may be prescribed for securing proper identification  of  such
person.
(B)  Furnishing  number to other persons.-- Any person with respect to
whom a return, statement,  or  other  document  is  required  under  the
authority  of this article to be made by another person shall furnish to
such other person such identifying  number  as  may  be  prescribed  for
securing his proper identification.
(C)  Furnishing  number of another person.-- Any person required under
the authority of this article to make  a  return,  statement,  or  other
document  with  respect  to another person shall request from such other
person, and shall include  in  any  such  return,  statement,  or  other
document,  such  identifying  number  as  may be prescribed for securing
proper identification of such other person.
(2) Limitation.--
(A) Except as provided in subparagraph (B), a  return  of  any  person
with  respect  to  his  liability  for  tax,  or  any statement or other
document in support thereof, shall not be  considered  for  purposes  of
subparagraphs  (B)  and (C) of subsection (1) as a return, statement, or
other document with respect to another person.
(B) For purposes of subparagraphs (B) and (C)  of  subsection  (1),  a
return  of an estate or trust with respect to its liability for tax, and
any statement or other document in support thereof, shall be  considered
as  a  return,  statement,  or  other  document  with  respect  to  each
beneficiary of such estate or trust.
(3) Requirement of information.-- For purposes of  this  section,  the
tax  commission  is  authorized  to  require  such information as may be
necessary to assign an identifying number to any person.
(c) Partnerships, limited liability companies and S corporations.
(1) Partnerships. Every  partnership  having  a  resident  partner  or
having   any  income  derived  from  New  York  sources,  determined  in
accordance with the applicable rules of section six  hundred  thirty-one
of this article as in the case of a nonresident individual, shall make a
return  for  the  taxable  year setting forth all items of income, gain,
loss  and  deduction  and  such  other  pertinent  information  as   the
commissioner  may by regulations and instructions prescribe. Such return
shall be filed on or before  the  fifteenth  day  of  the  fourth  month
following  the  close  of each taxable year, for taxable years beginning
before January first,  two  thousand  sixteen,  and  on  or  before  the
fifteenth  day  of  the  third month following the close of each taxable
year, for taxable  years  beginning  on  or  after  January  first,  two
thousand  sixteen,  except  that  the  due  date  for  the  return  of a
partnership consisting entirely of nonresident noncitizens shall be  the

date prescribed for the filing of its federal partnership return for the
taxable  year.  For  purposes  of this paragraph, "taxable year" means a
year or a period which would be a taxable year of the partnership if  it
were subject to tax under this article.
(2)  S  corporations.  Every  S  corporation  for  which  the election
provided for in subsection (a) of section six hundred sixty is in effect
shall make a return for the taxable year  setting  forth  all  items  of
income,  loss  and deduction and such other pertinent information as the
commissioner of taxation and finance may by regulations and instructions
prescribe. Such return shall be filed on or before the fifteenth day  of
the third month following the close of each taxable year.
(3)  Filing  fees.   (A) Every subchapter K limited liability company,
every limited liability company that is a disregarded entity for federal
income tax purposes, and every partnership which has any income  derived
from  New  York  sources,  determined  in accordance with the applicable
rules of section six hundred thirty-one of this article as in  the  case
of a nonresident individual, shall on or before the fifteenth day of the
third month following the close of each taxable year make a payment of a
filing  fee.  The  amount  of  the filing fee is the amount set forth in
subparagraph  (B)  of  this  paragraph.  The  minimum  filing   fee   is
twenty-five  dollars  for  taxable years beginning in two thousand eight
and  thereafter.  Limited  liability  companies  that  are   disregarded
entities  for  federal  income  tax  purposes  must  pay a filing fee of
twenty-five dollars for taxable years  beginning  on  or  after  January
first, two thousand eight.
(B)  The  filing fee will be based on the New York source gross income
of the limited liability company or partnership  for  the  taxable  year
immediately  preceding the taxable year for which the fee is due. If the
limited liability company or partnership does  not  have  any  New  York
source  gross  income  for  the  taxable  year immediately preceding the
taxable year for which the fee is due, the limited liability company  or
partnership  shall  pay the minimum filing fee. Partnerships, other than
limited liability partnerships under article eight-B of the  partnership
law  and  foreign  limited  liability  partnerships,  with less than one
million dollars in New York source gross  income  are  exempt  from  the
filing  fee. New York source gross income is the sum of the partners' or
members' shares of federal gross income from the partnership or  limited
liability  company  derived  from  or  connected  with New York sources,
determined in accordance with the  provisions  of  section  six  hundred
thirty-one  of  this  article  as  if  those  provisions and any related
provisions expressly referred to a computation of federal  gross  income
from  New  York  sources.  For  this  purpose,  federal  gross income is
computed without any allowance or deduction for cost of goods sold.
The amount of the filing fee for taxable years beginning on  or  after
January  first, two thousand eight will be determined in accordance with
the following table:
 
If the New York source gross income is:         The fee is:
not more than $100,000                          $25
more than $100,000 but not over $250,000        $50
more than $250,000 but not over $500,000        $175
more than $500,000 but not over $1,000,000      $500
more than $1,000,000 but not over $5,000,000    $1,500
more than $5,000,000 but not over $25,000,000   $3,000
Over $25,000,000                                $4,500
(C) No credits provided by this article may be taken against  the  fee
imposed by this paragraph.
(D)  Where  the  filing  fee is not timely paid, it shall be paid upon
notice and demand and shall be assessed, collected and paid in the  same
manner as taxes, and for those purposes any reference in this article to
tax imposed by this article shall be deemed also to refer to this filing
fee.
(E)  Notwithstanding  the  provisions of subsection (e) of section six
hundred ninety-seven of this article, the commissioner shall provide the
statements and other required information included  on  the  filing  fee
payment  form  under  section three hundred one of the limited liability
company law, subdivision (g) of section 121-1500 of the partnership law,
and subdivision (f) of section 121-1502 of the partnership law,  to  the
secretary of state for filing. Such provision may also include a copy or
image of that portion of the report solely pertinent to such information
to the extent feasible. The commissioner may also provide information on
noncompliance.
(4)  Estimated  tax of nonresident partners, members and shareholders.
(A) General. Every entity which is a partnership, other than a  publicly
traded  partnership  as  defined in section 7704 of the federal Internal
Revenue Code, subchapter K limited liability company or an S corporation
for which the election provided for in subsection  (a)  of  section  six
hundred  sixty of this part is in effect, which has partners, members or
shareholders  who  are  nonresident  individuals,   as   defined   under
subsection  (b)  of  section  six  hundred  five  of  this article, or C
corporations, and which has any income derived from  New  York  sources,
determined  in  accordance  with  the  applicable  rules  of section six
hundred thirty-one of this article as  in  the  case  of  a  nonresident
individual,  shall  pay  estimated  tax on such income on behalf of such
partners, members or  shareholders  in  the  manner  and  at  the  times
prescribed  by subsection (c) of section six hundred eighty-five of this
article. For purposes of this paragraph, the term "estimated tax"  shall
mean  a  partner's,  member's or shareholder's distributive share or pro
rata  share  of  the  entity  income  derived  from  New  York  sources,
multiplied  by the highest rate of tax prescribed by section six hundred
one of this article for the taxable  year  of  any  partner,  member  or
shareholder   who  is  an  individual  taxpayer,  or  paragraph  (a)  of
subdivision one of section two hundred  ten  of  this  chapter  for  the
taxable  year  of  any  partner,  member  or  shareholder  which  is a C
corporation, whether or not such C corporation is subject to  tax  under
article nine, nine-A or thirty-three of this chapter, and reduced by the
distributive  share  or  pro  rata share of any credits determined under
section  one  hundred  eighty-seven,  one  hundred  eighty-seven-a,  six
hundred  six  or  fifteen  hundred  eleven of this chapter, whichever is
applicable, derived from the entity.
(B) Treatment of  payment.  Any  payment  by  the  entity  under  this
paragraph  with  respect  to  a partner, member or shareholder who is an
individual shall be deemed to be a  payment  of  estimated  tax  by  the
partner, member or shareholder pursuant to subsection (c) of section six
hundred eighty-five of this article.
(C)  Additions  to tax. (i) If an entity required by this paragraph to
pay estimated tax on behalf of a partner, member or shareholder fails to
do so, such entity shall pay a penalty of fifty dollars  for  each  such
failure for each such partner, member or shareholder, unless it is shown
that  such  failure  is  due  to reasonable cause and not due to willful
neglect.
(ii) In the case of an underpayment of estimated tax  by  the  entity,
there  shall  be  added  to the estimated tax required to be paid by the
entity under this paragraph, an amount determined pursuant to subsection
(c) of section six hundred eighty-five of this article.
(D) Exceptions. (i) This paragraph shall not apply with respect  to  a
partner,  member  or  shareholder  for whom estimated tax required to be
paid under subparagraph (A) of this paragraph for the  taxable  year  of
the  partner,  member  or  shareholder  does  not  exceed  three hundred
dollars.
(ii)  This  paragraph  shall  not  apply  with respect to any partner,
member or shareholder if the entity is authorized by the commissioner to
file a group return and such partner, member or shareholder has  elected
to  be included on the group return, or if the commissioner has issued a
waiver of withholding pursuant to this  section.  The  commissioner  may
issue  such  waivers in respect of partners, members or shareholders who
are not subject to New York income tax, or who establish that  they  are
filing  New York income tax returns and paying estimated taxes when due,
and in other circumstances in which  the  commissioner  determines  that
withholding  is  not necessary to ensure collection of income tax on New
York source income allocable to the nonresident or C corporation.
(E) Information statements. Every entity required under this paragraph
to pay estimated taxes for any of its partners, members or  shareholders
shall  furnish,  within thirty days after such estimated tax is paid, to
each such partner, member or shareholder a written statement showing the
estimated taxes paid by the entity on behalf of such partner, member  or
shareholder  and any other information the commissioner shall prescribe,
including any information necessary to identify each partner, member  or
shareholder  on  whose  behalf  the entity has paid estimated taxes. The
entity shall  provide  to  the  commissioner  information  necessary  to
identify  the  estimated tax paid by the entity for each partner, member
or shareholder and  information  necessary  to  identify  each  partner,
member or shareholder of the partnership, limited liability company or S
corporation,  whether  or  not  estimated tax was paid for such partner,
member or shareholder by the entity, at such times and in such manner as
the commissioner shall prescribe.
(d) Information at source.   (1)  The  commissioner  of  taxation  and
finance  may prescribe regulations and instructions requiring returns of
information to be made and filed on or before February twenty-eighth  of
each year as to the payment or crediting in any calendar year of amounts
of  six hundred dollars or more to any taxpayer under this article. Such
returns may be required of any person, including lessees  or  mortgagors
of  real  or personal property, fiduciaries, employers, and all officers
and employees  of  this  state,  or  of  any  municipal  corporation  or
political  subdivision  of  this  state,  having  the  control, receipt,
custody, disposal  or  payment  of  interest,  rents,  salaries,  wages,
premiums,  annuities,  compensations, remunerations, emoluments or other
fixed or determinable gains, profits or income, except interest  coupons
payable  to  bearer.  Information  required  to be furnished pursuant to
paragraph four of subsection (a) of section six hundred seventy-four  on
a quarterly combined withholding and wage reporting return covering each
calendar quarter of each year and relating to tax withheld on wages paid
by  an  employer  to  an  employee  for  each  calendar  quarter,  shall
constitute the return of information required  to  be  made  under  this
section with respect to such wages.
(2)   (A)   The  commissioner  shall  be  authorized  to  require,  by
regulation, that any or all of the returns of information referred to in
paragraph one of this subsection, the  quarterly  combined  withholding,
wage  reporting and unemployment insurance returns required by paragraph
four of subsection (a) of  section  six  hundred  seventy-four  and  the
reports required by section one hundred seventy-one-h of this chapter be
filed  on  magnetic  media  or  in  other  machine  readable  form. Such
regulations shall conform, to the extent practicable, with corresponding

federal  regulations  and  instructions  promulgated  pursuant  to   the
authority of section six thousand eleven of the federal Internal Revenue
Code.  Any  person  required  to  file  two hundred fifty or more of the
returns  referred to in paragraph one of this subsection may be required
to file such returns on magnetic media or in other machine readable form
pursuant to the provisions of this paragraph.
(B) A  filer  may  seek  exemption  from  the  magnetic  media  filing
requirement  for  a  particular  period,  if  the  filer  proves  to the
satisfaction of the commissioner of taxation and finance that imposition
of such a requirement for that period would result  in  undue  hardship.
The  commissioner shall take into account (among other relevant factors)
the ability of the filer to comply at reasonable cost with such a filing
requirement.
(C) The regulations provided for in this paragraph  may  include,  but
shall not be limited to, the following:
(i)  a description of the kinds of magnetic media which can be used to
satisfy the filing requirement;
(ii) a description of the kinds of returns and classes of filers to be
subject to the magnetic media or  other  machine  readable  form  filing
requirement; and
(iii)  procedures governing the voluntary submission by magnetic media
or other machine readable form of all or  any  portion  of  the  returns
described in this paragraph.
(3)  The  commissioner  may  by  regulation or instruction require the
filing of a report annually by the comptroller or program manager of the
New  York  state  college  choice  tuition  savings  program,  or  their
designee,  setting forth the names and identification numbers of account
owners, designated beneficiaries  and  distributees  of  family  tuition
accounts,   the  amounts  contributed  to  such  accounts,  the  amounts
distributed from such accounts and the nature of such  distributions  as
qualified   withdrawals   or   as   withdrawals   other  than  qualified
withdrawals, and any such other  information  as  the  commissioner  may
require regarding the taxation under this article of amounts contributed
to  or  withdrawn  from such accounts. The commissioner may require that
any  such  report  also  be  made  to  the  account  owner,   designated
beneficiary or distributee of any such account.
(e)  Notice of qualification as receiver, etc. Every receiver, trustee
in  bankruptcy,  assignee  for  benefit  of  creditors,  or  other  like
fiduciary  shall  give  notice  of  his qualification as such to the tax
commission, as may be required by regulation.
(f) (1) Every trust described by subparagraph (D) of  paragraph  three
of subsection (b) of section six hundred five of this article shall make
a  return  for  any  taxable  year  in  which  it  makes an accumulation
distribution within the  meaning  of  subdivision  (b)  of  section  six
hundred  sixty-five of the internal revenue code to a beneficiary who is
a resident, which return shall include (i) information identifying  such
resident,  (ii)  the amount of such accumulation distribution, and (iii)
such other information as the commissioner may require.  In  determining
whether there has been an accumulation distribution for purposes of this
paragraph,  such trust shall exclude distributions from income earned by
the trust prior to the beneficiary's  birth  or  attaining  the  age  of
twenty-one.
(2)  Every  resident  trust  that does not file the return required by
section six hundred fifty-one of this part on the ground that it is  not
subject  to  tax  pursuant  to  subparagraph  (D)  of paragraph three of
subsection (b) of section six hundred  five  of  this  article  for  the
taxable  year  shall  make a return for such taxable year substantiating

its entitlement to that exemption and providing such  other  information
as the commissioner may require.
(3)  The  returns  required  by  this  subsection shall be filed on or
before the fifteenth day of the fourth month following the close of each
taxable year. For purposes of this paragraph,  "taxable  year"  means  a
year  or  a period which would be a taxable year of the trust if it were
subject to tax under this article.
(g) Requirements applicable to tax return preparer.
(1) Signature of tax return preparer. Any  individual  who  is  a  tax
return  preparer and prepares any return or claim for refund, shall sign
such return or claim  for  refund  in  accordance  with  regulations  or
instructions prescribed by the commissioner.
(2)  Furnishing  identifying  numbers.  Any return or claim for refund
which is prepared by a tax return preparer shall include the identifying
number of the preparer required by paragraph one of this  subsection  to
sign such return or claim for refund. In addition, where such individual
preparer  is  an  employee of an employer which is a tax return preparer
with respect to such return or claim for refund, or where such  preparer
is  a  partner  in  a  partnership  which  is a tax return preparer with
respect to such return or claim for refund, then such  return  or  claim
for refund shall also include the identifying number of such employer or
partnership.  Such  identifying  numbers  shall  be as prescribed by the
commissioner in order  to  secure  the  proper  identification  of  such
individual preparer, partnership or employer. The responsibility for the
inclusion of such identifying numbers shall be as set forth in paragraph
two  of  subsection  (u)  of  section  six  hundred  eighty-five of this
article.
(3) Furnishing copy to taxpayer.  Any  person  who  is  a  tax  return
preparer  with respect to any return or claim for refund shall furnish a
completed copy of such return or claim for refund to  the  taxpayer  not
later  than  the  time  such return or claim for refund is presented for
such taxpayer's signature.
(4) Copy or list to be retained by tax return preparer. Any person who
is a tax return preparer with respect to any return or claim for  refund
shall  for  a three year retention period described in paragraph nine of
this subsection:
(A) retain a completed copy of such return or  claim  for  refund,  or
retain,  on  a  list, the name and identification number of the taxpayer
for whom such return or claim was prepared, and
(B) make such copy or list available for inspection  upon  request  by
the commissioner.
(5)  Tax  return  preparer  defined. For purposes of this article, the
term  "tax  return  preparer"  means  any  person   who   prepares   for
compensation,  or  who employs or engages one or more persons to prepare
for compensation any return or claim for refund. The  preparation  of  a
substantial  portion of a return or claim for refund shall be treated as
if it were the preparation of such return or claim for refund. Where  an
employer  and  one  or  more  employees  of such employer are tax return
preparers with respect to the same return or claim for refund, or  where
a  partnership  and  one  or  more  partners in such partnership are tax
return preparers with respect to the same return or  claim  for  refund,
for  purposes  of  paragraphs  three  and  four of this subsection, such
employer or such partnership shall be deemed to be the sole  tax  return
preparer.  A  person shall not be a "tax return preparer" merely because
such person--
(A) furnishes typing, reproducing, or other mechanical assistance,
(B) prepares a return or claim for refund of the employer  (or  of  an
officer  or  employee  of  the  employer)  by  whom  he is regularly and
continuously employed, or
(C)  prepares  as  a  fiduciary  a  return or claim for refund for any
person.
(6) Person defined. For purposes of this subsection, the term "person"
includes an individual, corporation (including a dissolved  corporation)
or partnership.
(7) Return defined. For purposes of this subsection, the term "return"
shall mean any return required under this article.
(8)  Claim  for  refund  defined. For purposes of this subsection, the
term "claim for refund" shall mean a  claim  for  refund  of  or  credit
against  any tax imposed under this article, and shall include any claim
for refund of any credit treated as an overpayment  of  tax  under  this
article.
(9)  Retention  period  defined.  For purposes of this subsection, the
term "retention period" shall mean:
(A) in the case of a tax return, the period ending the later of  three
years  after  the due date of such return (without regard to extensions)
or three years after the date such return was presented to the  taxpayer
for such taxpayer's signature, and
(B)  in  the case of a claim for refund, the period ending three years
after such claim for refund was  presented  to  the  taxpayer  for  such
taxpayer's signature.
* (10)  Mandatory  electronic  filing by certain tax return preparers.
(A)(i) If a tax return preparer prepared more than two hundred  original
returns  during  the  calendar  year  beginning  on  January  first, two
thousand five, and if, in the calendar year beginning on January  first,
two  thousand  six,  such  tax  return  preparer  prepares  one  or more
authorized returns using tax software, then, for such calendar year  two
thousand  six  and  for  each  subsequent  calendar year thereafter, all
authorized returns prepared by such tax return preparer shall  be  filed
electronically,  in  accordance  with  instructions  prescribed  by  the
commissioner.
(ii) If a tax return preparer prepared more than one hundred  original
returns  during  any  calendar year beginning on or after January first,
two thousand six, and if, in  any  succeeding  calendar  year  such  tax
return  preparer  prepares  one  or  more  authorized  returns using tax
software,  then,  for  such  succeeding  calendar  year  and  for   each
subsequent  calendar year thereafter, all authorized returns prepared by
such tax return preparer shall be filed  electronically,  in  accordance
with instructions prescribed by the commissioner.
(B) For purposes of this paragraph:
(i)  "Electronic"  means  computer technology; provided, however, that
the commissioner may, in  instructions,  provide  that  use  of  barcode
technology   will   also   satisfy   the   mandatory  electronic  filing
requirements of this section.
(ii) "Authorized return" means any return required under this  article
which the commissioner has authorized to be filed electronically.
(iii)  "Original  return"  means  a return required under this article
that is filed, without regard to extensions, during  the  calendar  year
for which that return is required to be filed.
(iv)  "Tax  software" means any computer software program intended for
tax return preparation purposes.
* NB Effective January 1, 2030