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:

(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