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e-file - Business Tax Mandate FAQs
Who is subject to the business tax e-file mandate?
Section 29 of the Tax Law requires taxpayers who use tax software to prepare authorized tax documents to electronically file those documents and pay any balances due electronically. A tax document is defined as a return, report or any other document relating to a tax or other matter administered by the Commissioner of Taxation and Finance, other than a document relating to New York State and local income and earnings taxes. Once a taxpayer is required to e-file authorized tax documents and electronically pay balances due, the taxpayer must continue to do so for all subsequent tax years.
This requirement went into effect for tax documents filed on or after January 1, 2009.
Initially, corporations that meet all of the following conditions must e-file Article 9-A general business corporation and S corporation tax returns, and extensions and electronically pay any balances due with those documents
The taxpayer:
Additional business tax filings may be mandated for calendar year 2009 as electronic filing programs are added or expanded. Please check our website for up-to-date information on the e-file mandate for business filers.
Broadband or high-speed Internet access allows users to access the Internet and Internet-related services at significantly higher speeds than those available through “dial-up” Internet access services. Broadband includes high-speed transmission technologies such as:
I have an employee who prepares my corporation tax documents. Is that employee considered a tax return preparer?
No. Your employee is not considered a tax return preparer.
What business tax documents must be e-filed?
If you are subject to the mandates(s)
Electronic filing may be mandated for additional business tax filings as electronic filing programs are added or expanded. Please check our website for up-to-date information.
Will you notify me if I am subject to the e-file mandate?
No. It is the responsibility of the filer to comply with the e-file mandate.
My business is located outside of NYS. Am I still subject to the mandate?
Yes. If you meet the requirements in the law, you are subject to the e-file mandate even though you are located outside of New York State.
What is the penalty if I don't comply with the mandate?
There is a $50 per tax document penalty for each corporation tax payment that is not paid electronically.
Do I have to e-file requests for corporation tax extensions?
Yes. If your Tax Department approved e-file tax software supports the e-filing of extensions, you must e-file them. You must also pay any amount due electronically with a direct debit from a bank account.
There is no provision in the law that allows taxpayers using Tax Department approved e-file tax software to prepare their tax document to opt-out of e-file or e-pay.
I have multiple transactions to report on an e-filed corporation tax return. Do I have to enter every transaction, or can I use summary statements?
You must provide the transaction detail for e-filed corporation tax returns. You can provide the detail by:
Please note that the fact that a return includes multiple transactions will not be considered reasonable cause for not e-filing that return.
My corporation files a combined return. Can I e-file the return and/or extension?
No. We don’t currently require e-file for combined returns or the extension on Form CT-5.3.
What are the payment options on e-filed corporation tax returns or extensions?
The balance due on Article 9-A general business corporation and S corporation tax returns or extensions must be paid with a direct debit from a bank account at the time the returns or extensions are e-filed.
To make a direct debit payment, simply enter the bank routing number and account number into your tax software, and the payment information will be transmitted along with the tax data. The payment can be “post-dated” to a date up to and including the due date of the tax document. We will only debit the account for the amount authorized.
Do I have to submit an application to e-file NY corporation tax returns?
No. You don’t have to submit an application to e-file New York State tax returns. To participate in our Corporation Tax e-file program you must use software that has been approved for e-file by the New York State Tax Department.
What if I don’t want to e-file or pay the balance due on my corporation tax return or extension electronically?
Business taxpayers using tax software to prepare their corporation tax returns cannot opt-out of e-filing or electronic payment.
The tax software that I use to e-file corporation tax returns does not support all return types or attachments. What should I do?
If you are using Tax Department approved e-file tax software to prepare Article 9-A general business corporation and S corporation tax documents and that software does not support the e-filing of a specific document type or required attachment, you can file the entire tax document on paper.
The tax software that I use does not support NY e-file. Do I have to buy new software?
Not at this time. We are only requiring that filers who use Tax Department approved e-file tax software e-file their tax documents and electronically pay the balance due. If you are using tax software that does not support e-file you can continue to use it at this time. You will not be subject to the e-file mandate for corporation tax documents filed in calendar year 2009.
How do I find software that supports NY e-file?
You can check our web-site for a list of approved software, or ask your software company if they support New York State e-file.
The business tax e-file mandate specifically excludes the PrompTax payments required by section 10 of the Tax Law. However, filing of Form ST-810 is required by New York State sales and use tax law (Article 28 of the Tax Law) and can be included in the business tax e-file mandate.
Do I have to apply to Web File my Form ST-810 return?
No, but you must register for the Online Tax Center. You can only Web File your return through the Online Tax Center.
How do I register to use the Online Tax Center and Sales Tax Web File?
View a demo of our Online Tax Center registration.
Can I use my PrompTax access code and password to access the Online Tax Center?
No. You’ll select a different user name and password once you are registered for the Online Tax Center, and you must use them to log in.
You will use your Online Tax Center user name and password to Web File your Form ST-810 returns. You will continue using your PrompTax access code and password to make your monthly payments.
Yes.
Can I make my monthly sales tax payments on the Online Tax Center?
No. You will continue using your PrompTax access code and password to make your monthly payments. You will only Web File your sales tax return through the Online Tax Center.
I’m required to file a schedule that Sales Tax Web File doesn’t support. What should I do?
You must continue filing on paper if you can’t file your entire Form ST-810 return using Sales Tax Web File. If we enhance Web File to support the schedule, or if you are no longer required to file an unsupported schedule, then you must Web File your Form ST-810 returns.
What sales tax schedules does Sales Tax Web File support?
You can Web File these schedules with quarterly and annual returns:
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Last Modified: July 10, 2009
