NYS E-Filing Mandates 

The NYS Department of Taxation and Finance ("DTF") recently announced new e-filing mandates that may affect you.  We have highlighted some of the new requirements here.

1. Corporate estimated tax payments that you make on or after December 1, 2011, must be filed and paid electronically via the DTF Web site, even if you were previously instructed to pay via voucher and check. You need to visit the DTF Web site http://www.tax.ny.gov/online/bus.htm and set up an online services account so you can Web File and pay your corporate estimated taxes.

The following payment options are available with Web File:

ACH debit (pay directly from your bank account)

• Provide your bank routing and account numbers when you electronically file and the payment will be paid directly from your checking or savings account.
• Your ACH debit payment will be considered timely if you submit the transaction before midnight on the due date.
• You should also check with your bank to be sure you do not have a debit block on your account that would prevents the DTF from withdrawing the funds.

ACH credit (electronic credit transfer)

• You must initiate the ACH credit payment through your bank. Your bank electronically sends the payment to the Tax Department. Your bank may require you to have special software; contact your bank to learn more.
• In order for your ACH credit payment to be considered timely, the settlement date of the payment must not be after the due date. This means the ACH credit payment must be initiated prior to the due date. Contact your bank for its specific deadline for submitting an ACH credit to have it processed on the due date.

2. For several years, we have been mandated by the NYS Department of Finance to electronically file your corporation and partnership tax returns (including LLC fees) and extensions. Since January 1, 2011, the DTF no longer allows preparers or taxpayers to opt out of e-filing unless there is reasonable cause for doing so. (One common reason is that certain Empire Zone Credit forms that may be part of the return disqualify the return from e-file.) However, most returns can be e-filed and beginning with tax returns filed on or after January 1, 2012, NYS may assess penalties against the paid preparer and the taxpayer if a required return is not e-filed. The penalties would be assessed for each tax document not filed electronically ($50), failure to pay electronically ($50), and failure to file penalty (for that tax type).

3. Sales tax documents for PromptTax, monthly and quarterly filers must also be filed electronically. Beginning with the return due on March 20, 2012, we will also be required to electronically file returns for annual sales tax filers.

4. If you prepare your own sales tax returns, please note that you must also Web File if you meet all three of the following conditions:

• You prepare the returns yourself, without the assistance of a paid preparer,
• Use a computer to prepare, document or calculate the required filings or related schedules, or are subject to the corporate tax e-file mandate (most vendors who use paid preparers are subject to this e-file mandate),
• Have broadband Internet access.

Please feel free to contact your BST advisor if you have any questions.