§ 1703 — Information returns relating to payments made in settlement of payment card and third party network transactions

§ 1703. Information returns relating to payments made in settlement of\npayment card and third party network transactions. 1. (a) Every payment\nsettlement entity, third party settlement organization, electronic\npayment facilitator or other third party acting on behalf of a payment\nsettlement entity, all as defined in section 6050W of the internal\nrevenue code and referred to herein as "a reporting entity," required to\nfile information returns pursuant to that section shall, within thirty\ndays of the filing thereof, file with the department in such form and\nmanner as prescribed by the commissioner either (i) a duplicate of all\nsuch information returns or (ii) a duplicate of such information returns\nrelated to participating payees, as defined in section 6050W of the\ninternal revenue code, with a New York state address or New York state\ntaxpayers. The commissioner may require that such returns be filed\nelectronically.\n (b) To facilitate accurate reporting by the entities required to file\ninformation returns pursuant to this section, the department shall\nprovide a list or database of New York state taxpayers no later than\nforty-five days prior to the information reporting deadline, in such\nform and manner as prescribed by the commissioner. The information\nincluded in such list or database shall not be used by a reporting\nentity for any purpose other than producing and filing information\nreturns pursuant to this section.\n (c) Any information received by the department on an information\nreturn filed pursuant to this section, concerning a person who is not\nsubject to tax in New York, or is not subject to any requirement imposed\nby or pursuant to the authority of this chapter, may not be used by the\ndepartment. The department shall not redisclose any information received\non an information return filed pursuant to this section, except that it\nmay disclose to the commissioner of finance of the city of New York, for\nthe purpose of the administration of laws relating to taxes or charges\ncollected by the commissioner of finance of the city of New York,\ninformation received on such returns concerning any person or entity\nwith a New York city address or that is a New York city taxpayer or that\nis required to pay New York city taxes and/or charges or that is subject\nto any reporting requirement pursuant to New York city tax laws.\n 2. (a) Any reporting entity failing to file an information return\nrequired pursuant to subdivision one of this section within the time\nprescribed will be subject to a penalty of fifty dollars for each\nfailure, if failure is for not more than one month, with an additional\nfifty dollars for each month or fraction thereof during which each\nfailure continues. However, the total amount of penalty imposed on a\nreporting entity may not exceed two hundred fifty thousand dollars\nannually.\n (b) The commissioner may waive all or any portion of any penalty\nimposed by this subdivision with respect to any violation if (i) the\ncommissioner determines that the failure to timely file a return, was\ndue to reasonable cause and not due to willful neglect, or (ii)\nrescinding the penalty would promote compliance with the requirements of\nthis chapter and effective tax administration.\n