N.Y. Tax Law § 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