Assembly Bill A9768

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9768
 
                           I N  A S S E M B L Y
 
                             February 11, 2020
                                ___________
 
 Introduced  by  M.  of  A.  CYMBROWITZ  -- read once and referred to the
   Committee on Ways and Means
 
 AN ACT to amend the tax law, in relation to reporting  requirements  for
   payment  settlement entities, third party settlement organizations and
   electronic payment facilitators
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision 1 of section 1703 of the tax law, as added by
 section 1 of part E of chapter 57 of the laws of 2010, paragraph (c)  as
 amended  by  chapter  235  of  the  laws  of 2013, is amended to read as
 follows:
   1. (a) Every payment settlement entity, third party settlement  organ-
 ization,  electronic  payment facilitator or other third party acting on
 behalf of a payment settlement entity, all as defined in  section  6050W
 of  the  internal  revenue  code  and referred to herein as "a reporting
 entity," required to file information returns pursuant to [that section]
 PARAGRAPH (B) OF THIS SUBDIVISION  shall,  within  thirty  days  of  the
 filing  thereof,  file  with  the  department in such form and manner as
 prescribed by the commissioner either (i) a duplicate of all such infor-
 mation returns [or];  (ii)  a  duplicate  of  such  information  returns
 related  to  participating  payees,  as  defined in section 6050W of the
 internal revenue code, with a New York state address or New  York  state
 taxpayers;  OR  (III)  IN AN ALTERNATE FORM AS PRESCRIBED BY THE COMMIS-
 SIONER. The commissioner may require that such returns  be  filed  elec-
 tronically.
   (b)  A  REPORTING ENTITY SHALL REPORT THE GROSS AMOUNT PAID IN SETTLE-
 MENT TO A PAYEE THAT IS EQUAL TO SIX HUNDRED DOLLARS  OR  GREATER  IRRE-
 SPECTIVE OF THE NUMBER OF TRANSACTIONS BETWEEN SUCH REPORTING ENTITY AND
 SUCH PAYEE, AND NOTWITHSTANDING SUCH REPORTING ENTITY'S OBLIGATION UNDER
 SECTION 6050W OF THE INTERNAL REVENUE CODE.
   (C)  To facilitate accurate reporting by the entities required to file
 information returns pursuant  to  this  section,  the  department  shall
 provide  a  list  or  database of New York state taxpayers no later than
 forty-five days prior to the information  reporting  deadline,  in  such
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD13562-01-9

 A. 9768                             2
 
 form  and  manner  as  prescribed  by  the commissioner. The information
 included in such list or database shall not be used by a reporting enti-
 ty for any purpose other than producing and filing  information  returns
 pursuant to this section.
   [(c)] (D) Any information received by the department on an information
 return  filed  pursuant  to this section, concerning a person who is not
 subject to tax in New York, or is not subject to any requirement imposed
 by or pursuant to the authority of this chapter, may not be used by  the
 department. The department shall not redisclose any information received
 on  an information return filed pursuant to this section, except that it
 may disclose to the commissioner of finance of the city of New York, for
 the purpose of the administration of laws relating to taxes  or  charges
 collected by the commissioner of finance of the city of New York, infor-
 mation  received  on such returns concerning any person or entity with a
 New York city address or that is a New York city  taxpayer  or  that  is
 required to pay New York city taxes and/or charges or that is subject to
 any reporting requirement pursuant to New York city tax laws.
   §  2. This act shall take effect on the first of January next succeed-
 ing the date on which it shall have become a  law  and  shall  apply  to
 taxable years beginning on and after such date.