E-file mandate for tax return preparers

E-file - individual and partnership e-file mandate for tax return preparers

New for January 2009, there are now two e-file mandates for tax return preparers.

Income tax mandate for tax return preparers

The income tax mandate for tax return preparers now includes partnership returns and partnership extensions in addition to income tax returns and extensions for tax years beginning on or after January 1, 2008.

Who is covered by the mandate?

You must e-file all individual income tax and partnership returns and extensions beginning on January 1, 2009, if you were subject to the mandate in a prior year, or if you:

Prepared more than 100 combined original individual or partnership returns for tax year 2007 in calendar year 2008, and
Use tax software to prepare one or more New York State individual and/or partnership returns for tax year 2008 in calendar year 2009.

Penalties

A $50 penalty applies to each return or extension that you fail to e-file, unless the taxpayer opts out of e-filing or you have other reasonable cause for failure to comply.

You can find additional information in our FAQs.

Business tax e-file mandate for tax return preparers

This new mandate requires tax return preparers who meet certain requirements to e-file authorized tax document beginning on or after January 1, 2009. The mandate also requires electronic payment of the balance due on any authorized tax document.

Who is initially covered by the mandate?

You must e-file all general business and NYS S corporation (Article 9-A) returns and extensions beginning on January 1, 2009, and electronically pay the balance due if you:

Prepared more than 100 original Article 9-A documents in calendar year 2008, including tax documents for prior periods; and
Use tax software to prepare one or more Article 9-A tax documents in 2009.

Penalties

A $50 penalty applies to each document that you fail to e-file, unless the taxpayer opted out of e-filing or you have other reasonable cause for failure to comply.

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

You can find additional information in our FAQs.

Last Modified: June 23, 2008