2023 New York Laws › TAX - Tax › Article 36 - Compliance and Enforcement Initiatives › 1703 - Information Returns Relating to Payments Made in Settlement of Payment Card and Third Party Network Transactions.

§ 1703. Information returns relating to payments made in settlement of
payment  card and third party network transactions. 1. (a) Every payment
settlement  entity,  third  party  settlement  organization,  electronic
payment  facilitator  or other third party acting on behalf of a payment
settlement entity, all as defined  in  section  6050W  of  the  internal
revenue code and referred to herein as "a reporting entity," required to
file  information  returns pursuant to that section shall, within thirty
days of the filing thereof, file with the department in  such  form  and
manner  as  prescribed by the commissioner either (i) a duplicate of all
such information returns or (ii) a duplicate of such information returns
related to participating payees, as defined  in  section  6050W  of  the
internal  revenue  code, with a New York state address or New York state
taxpayers. The commissioner may  require  that  such  returns  be  filed
electronically.
(b)  To facilitate accurate reporting by the entities required to file
information returns pursuant  to  this  section,  the  department  shall
provide  a  list  or  database of New York state taxpayers no later than
forty-five days prior to the information  reporting  deadline,  in  such
form  and  manner  as  prescribed  by  the commissioner. The information
included in such list or database shall  not  be  used  by  a  reporting
entity  for  any  purpose  other  than  producing and filing information
returns pursuant to this section.
(c) Any information received  by  the  department  on  an  information
return  filed  pursuant  to this section, concerning a person who is not
subject to tax in New York, or is not subject to any requirement imposed
by or pursuant to the authority of this chapter, may not be used by  the
department. The department shall not redisclose any information received
on  an information return filed pursuant to this section, except that it
may disclose to the commissioner of finance of the city of New York, for
the purpose of the administration of laws relating to taxes  or  charges
collected  by  the  commissioner  of  finance  of  the city of New York,
information received on such returns concerning  any  person  or  entity
with a New York city address or that is a New York city taxpayer or that
is required to pay New York city taxes and/or charges or that is subject
to any reporting requirement pursuant to New York city tax laws.
2.  (a)  Any  reporting  entity  failing to file an information return
required pursuant to subdivision one of this  section  within  the  time
prescribed  will  be  subject  to  a  penalty  of fifty dollars for each
failure, if failure is for not more than one month, with  an  additional
fifty  dollars  for  each  month  or  fraction thereof during which each
failure continues. However, the total amount of  penalty  imposed  on  a
reporting  entity  may  not  exceed  two  hundred fifty thousand dollars
annually.
(b) The commissioner may waive all  or  any  portion  of  any  penalty
imposed  by  this  subdivision  with respect to any violation if (i) the
commissioner determines that the failure to timely file  a  return,  was
due  to  reasonable  cause  and  not  due  to  willful  neglect, or (ii)
rescinding the penalty would promote compliance with the requirements of
this chapter and effective tax administration.