New for 2010:

• You must e-file corporation tax extensions for Article 9, 9-A, 32 and 33 even if the subsequent corporation tax return is not e-fileable.

• Beginning with the return due on April 20, 2010, you must electronically file monthly sales tax returns directly with the Tax Department by creating an Online Services account.

Taxpayers required to e-file corporation tax extensions and returns

A corporation must e-file all general business and NYS S corporation returns (Article 9-A) and extensions (Articles 9, 9-A, 32 and 33), and electronically pay the balance due on those tax documents beginning on January 1, 2010 if the corporation meets all three of the following conditions:

• It does not use a tax return preparer to prepare corporation tax returns and/or extensions;
• It uses tax software that has been approved by the Tax Department for e-filing corporation tax returns and/or extensions; and
• It has broadband internet access.

The corporation must e-file its extension to the extent that it is supported by its tax preparation software, even if the associated tax return cannot be e-filed due to unsupported forms or attachments.

If there is a balance due on any tax document required to be e-filed, this amount must be paid electronically.

Sales Tax monthly filers are required to Web file.

Beginning with the return due on April 20, 2010, you must Web File if your business meets all four of the following conditions:

• It is already subject to the PrompTax e-file requirements, or is required to file monthly
• It does not use a tax preparer to prepare the required filings;
• It uses a computer to prepare, document or calculate the required filings or related schedules, or is subject to the corporation tax e-file mandate

• It has broadband internet access.

How to comply with the mandate

To e-file New York corporation tax returns and extensions, you must use approved software to e-file your New York State corporation tax returns and extensions. If your software does not support e-file you are not required to e-file.

To electronically file sales tax returns on the Tax Department Web site you must create an Online Services account.

Additional information:

• If you have multiple transactions you must provide the transaction detail. You can do so by entering each transaction into the software, importing the data if your software allows it, or transmitting a pdf attachment that includes the detail with the e-filed return.
• We do not support the e-filing of certain corporation tax returns and attachments, including combined returns. However, you must still e-file the extension for those returns, if supported by your software.

• You are not subject to the sales tax mandate if you are required to file Schedule FR (retail sales of qualified motor fuel or diesel motor fuel) or Schedule N-ATT (certain services in New York City).

Penalties

Taxpayers are subject to a $50 per tax document penalty for failing to electronically pay any balance due. The Department cannot abate the payment penalty for reasonable cause.