New York State Electronic Filing Mandates

Mark H. Levin, CPA

In Chapter 61 of the Laws of 2005, the New York State legislature authorized the Department of Taxation and Finance (DTF) to require certain tax return preparers to electronically file all tax returns required under Tax Law Article 22. While Article 22 includes personal income tax returns, fiduciary income tax returns, withholding tax returns, and partnership returns [including limited liability company (LLC) filing fee returns], the DTF initially mandated that only personal income tax returns be e-filed. For tax year 2007 returns filed in calendar year 2008, any tax return preparer who handled more than 100 original tax year 2006 personal income tax returns in calendar year 2007 and used software to prepare at least one personal income tax return in calendar year 2008 was required to e-file all tax year 2007 personal income tax returns and extensions in calendar year 2008, unless the taxpayer opted out using Form TR-800-IT or TR-800-PT. A separate TR-800 form is required for each return (one for the extension and one for the tax return). Under this Article 22 mandate, there is no requirement that taxpayers who e-file also make their payments electronically.