New York – Changes to the Tax Preparer E-file Mandate

SALT Report 1954 – The New York Department of Taxation and Finance reminds tax preparers that the e-file mandate threshold has changed to include tax preparers who have prepared at least one authorized tax document for more than 10 different taxpayers during the 2012 calendar year.

Effective January 1, 2013, the following taxes will be subject to the mandate:

  • Sales and Use
  • Personal income tax
  • Partnership
  • Fiduciary
  • Corporation tax
  • Beverage Container
  • Taxicab Medallion Fee
  • International Fuel Tax Agreement, and
  • Extensions, amended returns, prior year returns, estimated tax payments and any other mandated New York tax documents

E-file Mandate Penalties

If you do not file and pay electronically when required to do so, the Department is authorized to impose the following penalties on both Taxpayer and their clients:

  • If you file a paper document that you were required to file electronically, your client may be subject to the failure to file a return or report penalty for that tax type, and
  • Any overpayment claimed on a paper tax document that was required to be filed electronically will not be eligible to receive interest until it’s filed electronically

The Department changed the definition of the term “authorized tax document” to reflect that if a return or report includes one or more tax documents that cannot be e-filed, tax preparers do not need to count it to determine if they meet the 10 taxpayer threshold.

Also, if a tax preparer was subject to the mandate in a previous year, they will be subject to the new mandate even if they do not meet the new threshold.

For Further Information:

New York Department of Taxation and Finance – Notice