S T A T E O F N E W Y O R K
________________________________________________________________________
135
2017-2018 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 4, 2017
___________
Introduced by M. of A. CAHILL -- Multi-Sponsored by -- M. of A. ABINAN-
TI, CRESPO, FINCH, FITZPATRICK, FRIEND, GLICK, GOODELL, GOTTFRIED,
GUNTHER, JAFFEE, LUPARDO, MAGEE, McDONOUGH, McLAUGHLIN, O'DONNELL,
RAIA, ROSENTHAL, SALADINO, SCHIMMINGER, WEPRIN, ZEBROWSKI -- read once
and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to repealing penalties for
failure to electronically file or electronically pay certain tax docu-
ments
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision (e) of section 29 of the tax law, as amended by
section 13 of part U of chapter 61 of the laws of 2011, paragraph 2 as
amended by section 4 and paragraph 4 as amended by section 5 of part G
of chapter 59 of the laws of 2012, is amended to read as follows:
(e) Failure to electronically file or electronically pay. [(1) If a
tax return preparer is required to file authorized tax documents elec-
tronically pursuant to subdivision (b) of this section, and that prepar-
er fails to file one or more of those documents electronically, then
that preparer will be subject to a penalty of fifty dollars for each
failure to electronically file an authorized tax document, unless it is
shown that the failure is due to reasonable cause and not due to willful
neglect.
(2) If a taxpayer is required to electronically file any authorized
tax documents or electronically pay any tax liability or other amount
due shown on, or required to be paid with, an authorized tax document
required to be filed electronically pursuant to subdivision (b) or (c)
of this section, and that taxpayer fails to electronically file one or
more of those tax documents or electronically pay one or more of those
liabilities or other amounts due, then that taxpayer will be subject to
a penalty of fifty dollars for each failure to electronically file any
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01602-01-7
A. 135 2
authorized tax document or electronically pay any tax, unless it is
shown that the failure is due to reasonable cause and not due to willful
neglect. In addition, any taxpayer that fails to electronically file an
authorized tax document for any tax will be subject to the penalty
imposed under the applicable article for the failure to file a return or
report, whether a paper return or report has been filed or not.
Provided, however, that this subdivision shall not apply to an individ-
ual taxpayer with respect to his or her personal tax documents that are
required by or pursuant to the authority of article twenty-two, thirty,
thirty-A or thirty-B of this chapter.
(3) The penalties provided for by this subdivision must be paid upon
notice and demand, and will be assessed, collected and paid in the same
manner as the tax to which the electronic transaction relates. However,
if the electronic transaction relates to another matter administered by
the commissioner, then the penalty will be assessed, collected and paid
in the same manner as prescribed by article twenty-seven of this chap-
ter.
(4) If a taxpayer or tax return preparer fails to electronically file
an authorized tax document when required to do so pursuant to subdivi-
sion (b) or (c) of this section, the taxpayer shall not be eligible to
receive interest on any overpayment in accordance with the overpayment
provisions of this chapter until such document is filed electronically.
Provided, however, that this subdivision shall not apply to an individ-
ual taxpayer with respect to his or her personal tax documents that are
required by or pursuant to the authority of article twenty-two, thirty,
thirty-A or thirty-B of this chapter] NEITHER TAX RETURN PREPARERS NOR
TAXPAYERS SHALL BE SUBJECT TO ANY PENALTIES FOR THEIR FAILURE TO ELEC-
TRONICALLY FILE OR ELECTRONICALLY PAY PURSUANT TO THIS SECTION.
§ 2. Subdivision (e) of section 29 of the tax law, as added by section
1 of part UU-1 of chapter 57 of the laws of 2008 and paragraph 1 as
amended by section 1 of part G of chapter 57 of the laws of 2010, is
amended to read as follows:
(e) Failure to electronically file or electronically pay. [(1) If a
tax return preparer is required to file authorized tax documents elec-
tronically pursuant to subdivision (b) of this section, and that prepar-
er fails to file one or more of those documents electronically, then
that preparer will be subject to a penalty of fifty dollars for each
failure to electronically file an authorized tax document, unless it is
shown that the failure is due to reasonable cause and not due to willful
neglect.
(2) If a taxpayer is required to electronically pay any tax liability
or other amount due shown on, or required to be paid with, an authorized
tax document required to be filed electronically pursuant to subdivision
(b) or (c) of this section, and that taxpayer fails to electronically
pay one or more of those liabilities or other amounts due, then that
taxpayer will be subject to a penalty of fifty dollars for each failure
to electronically pay.
(3) The penalties provided for by this subdivision must be paid upon
notice and demand, and will be assessed, collected and paid in the same
manner as the tax to which the electronic transaction relates. However,
if the electronic transaction relates to another matter administered by
the commissioner, then the penally will be assessed, collected and paid
in the same manner as prescribed by article twenty-seven of this chap-
ter] NEITHER TAX RETURN PREPARERS NOR TAXPAYERS SHALL BE SUBJECT TO ANY
PENALTIES FOR THEIR FAILURE TO ELECTRONICALLY FILE OR ELECTRONICALLY PAY
PURSUANT TO THIS SECTION.
A. 135 3
§ 3. This act shall take effect on the one hundred twentieth day after
it shall have become a law; provided, however that the amendments to
subdivision (e) of section 29 of the tax law made by section one of this
act shall be subject to the expiration and reversion of such section
pursuant to section 23 of part U of chapter 61 of the laws of 2011, as
amended, when upon such date the provisions of section two of this act
shall take effect. Effective immediately, the addition, amendment and/or
repeal of any rule or regulation necessary for the implementation of
this act on its effective date is authorized to be made on or before
such date.