§ 29 — Mandatory electronic filing and payment

* § 29. Mandatory electronic filing and payment. (a) For purposes of\nthis section, the following terms have the specified meanings:\n (1) "Authorized tax document" means a tax document which the\ncommissioner has authorized to be filed electronically, provided however\nthat any return or report that includes one or more tax documents that\ncannot be filed electronically shall not be deemed to be an authorized\ntax document for purposes of this section.\n (2) "Electronic" means computer technology.\n (3) "Original tax document" means a tax document that is filed during\nthe calendar year for which that tax document is required or permitted\nto be filed.\n (4) "Tax" means any tax or other matter administered by the\ncommissioner pursuant to this chapter or any other provision of law.\n (5) "Tax document" means a return, report or any other document\nrelating to a tax or other matter administered by the commissioner.\n (6) "Tax return preparer" means any person who prepares for\ncompensation, or who employs or engages one or more persons to prepare\nfor compensation, any authorized tax document. For purposes of this\nsection, the term "tax return preparer" also includes a payroll service.\n (7) "Tax software" means any computer software program intended for\ntax return preparation purposes. For purposes of this section, the term\n"tax software" includes, but is not limited to, an off-the-shelf\nsoftware program loaded onto a tax return preparer's or taxpayer's\ncomputer, an online tax preparation application, or a tax preparation\napplication hosted by the department.\n (b) (1) If a tax return preparer prepared more than one hundred\noriginal tax documents during any calendar year beginning on or after\nJanuary first, two thousand seven, and if, in any succeeding calendar\nyear that tax return preparer prepares one or more authorized tax\ndocuments using tax software, then, for that succeeding calendar year\nand for each subsequent calendar year thereafter, all authorized tax\ndocuments prepared by that tax return preparer must be filed\nelectronically, in accordance with instructions prescribed by the\ncommissioner.\n (2) If a tax return preparer prepared authorized tax documents for\nmore than ten different taxpayers during any calendar year beginning on\nor after January first, two thousand twelve, and if in any succeeding\ncalendar year that tax return preparer prepares one or more authorized\ntax documents using tax software, then, for such succeeding calendar\nyear and for each subsequent calendar year thereafter, all authorized\ntax documents prepared by that tax return preparer must be filed\nelectronically, in accordance with instructions prescribed by the\ncommissioner.\n (c) If a taxpayer does not utilize a tax return preparer to prepare an\nauthorized tax document, but instead prepares that document itself using\ntax software, then all authorized tax documents prepared by the taxpayer\nusing tax software must be filed electronically, in accordance with\ninstructions prescribed by the commissioner.\n (d) The commissioner may require tax liability or other amount due\nshown on, or required to be paid with, an authorized tax document\nrequired to be filed electronically pursuant to subdivision (b) or (c)\nof this section to be paid by the taxpayer electronically, in accordance\nwith instructions prescribed by the commissioner.\n (e) Failure to electronically file or electronically pay. (1) If a tax\nreturn preparer is required to file authorized tax documents\nelectronically pursuant to subdivision (b) of this section, and that\npreparer fails to file one or more of those documents electronically,\nthen that preparer will be subject to a penalty of fifty dollars for\neach failure to electronically file an authorized tax document, unless\nit is shown that the failure is due to reasonable cause and not due to\nwillful neglect.\n (2) If a taxpayer is required to electronically file any authorized\ntax documents or electronically pay any tax liability or other amount\ndue shown on, or required to be paid with, an authorized tax document\nrequired to be filed electronically pursuant to subdivision (b) or (c)\nof this section, and that taxpayer fails to electronically file one or\nmore of those tax documents or electronically pay one or more of those\nliabilities or other amounts due, then that taxpayer will be subject to\na penalty of fifty dollars for each failure to electronically file any\nauthorized tax document or electronically pay any tax, unless it is\nshown that the failure is due to reasonable cause and not due to willful\nneglect. In addition, any taxpayer that fails to electronically file an\nauthorized tax document for any tax will be subject to the penalty\nimposed under the applicable article for the failure to file a return or\nreport, whether a paper return or report has been filed or not.\nProvided, however, that this subdivision shall not apply to an\nindividual taxpayer with respect to his or her personal tax documents\nthat are required by or pursuant to the authority of article twenty-two,\nthirty, thirty-A or thirty-B of this chapter.\n (3) The penalties provided for by this subdivision must be paid upon\nnotice and demand, and will be assessed, collected and paid in the same\nmanner as the tax to which the electronic transaction relates. However,\nif the electronic transaction relates to another matter administered by\nthe commissioner, then the penalty will be assessed, collected and paid\nin the same manner as prescribed by article twenty-seven of this\nchapter.\n (4) If a taxpayer or tax return preparer fails to electronically file\nan authorized tax document when required to do so pursuant to\nsubdivision (b) or (c) of this section, the taxpayer shall not be\neligible to receive interest on any overpayment in accordance with the\noverpayment provisions of this chapter until such document is filed\nelectronically. Provided, however, that this subdivision shall not\napply to an individual taxpayer with respect to his or her personal tax\ndocuments that are required by or pursuant to the authority of article\ntwenty-two, thirty, thirty-A or thirty-B of this chapter.\n (f) The provisions of sections nine and ten of this chapter are not\naffected by this section and will remain in full force and effect.\n (g) The commissioner is authorized to promulgate any regulations\nnecessary to implement this section.\n * NB Effective until December 31, 2029\n * § 29. Mandatory electronic filing and payment. (a) For purposes of\nthis section, the following terms have the specified meanings:\n (1) "Authorized tax document" means a tax document which the\ncommissioner has authorized to be filed electronically.\n (2) "Electronic" means computer technology.\n (3) "Original tax document" means a tax document that is filed during\nthe calendar year for which that tax document is required or permitted\nto be filed.\n (4) "Tax" means any tax or other matter administered by the\ncommissioner pursuant to this chapter or any other provision of law;\nprovided, however, that the term "tax" does not include the taxes\nimposed by, or pursuant to the authority of, articles twenty-two,\nthirty, thirty-A or thirty-B of this chapter.\n (5) "Tax document" means a return, report or any other document\nrelating to a tax or other matter administered by the commissioner.\n (6) "Tax return preparer" means any person who prepares for\ncompensation, or who employs or engages one or more persons to prepare\nfor compensation, any authorized tax document. For purposes of this\nsection, the term "tax return preparer" also includes a payroll service.\n (7) "Tax software" means any computer software program intended for\ntax return preparation purposes. For purposes of this section, the term\n"tax software" includes, but is not limited to, an off-the-shelf\nsoftware program loaded onto a tax return preparer's or taxpayer's\ncomputer, an online tax preparation application, or a tax preparation\napplication hosted by the department.\n (b) If a tax return preparer prepared more than one hundred original\ntax documents during any calendar year beginning on or after January\nfirst, two thousand seven, and if, in any succeeding calendar year that\ntax return preparer prepares one or more authorized tax documents using\ntax software, then, for that succeeding calendar year and for each\nsubsequent calendar year thereafter, all authorized tax documents\nprepared by that tax return preparer must be filed electronically, in\naccordance with instructions prescribed by the commissioner.\n (c) If a taxpayer does not utilize a tax return preparer to prepare an\nauthorized tax document during any calendar year beginning on or after\nJanuary first, two thousand eight, but instead prepares that document\nitself using tax software, then, for that calendar year and for each\nsubsequent calendar year thereafter, all authorized tax documents\nprepared by the taxpayer using tax software must be filed\nelectronically, in accordance with instructions prescribed by the\ncommissioner.\n (d) Any tax liability or other amount due shown on, or required to be\npaid with, an authorized tax document required to be filed\nelectronically pursuant to subdivision (b) or (c) of this section must\nbe paid by the taxpayer electronically, in accordance with instructions\nprescribed by the commissioner.\n (e) Failure to electronically file or electronically pay. (1) If a tax\nreturn preparer is required to file authorized tax documents\nelectronically pursuant to subdivision (b) of this section, and that\npreparer fails to file one or more of those documents electronically,\nthen that preparer will be subject to a penalty of fifty dollars for\neach failure to electronically file an authorized tax document, unless\nit is shown that the failure is due to reasonable cause and not due to\nwillful neglect.\n (2) If a taxpayer is required to electronically pay any tax liability\nor other amount due shown on, or required to be paid with, an authorized\ntax document required to be filed electronically pursuant to subdivision\n(b) or (c) of this section, and that taxpayer fails to electronically\npay one or more of those liabilities or other amounts due, then that\ntaxpayer will be subject to a penalty of fifty dollars for each failure\nto electronically pay.\n (3) The penalties provided for by this subdivision must be paid upon\nnotice and demand, and will be assessed, collected and paid in the same\nmanner as the tax to which the electronic transaction relates. However,\nif the electronic transaction relates to another matter administered by\nthe commissioner, then the penally will be assessed, collected and paid\nin the same manner as prescribed by article twenty-seven of this\nchapter.\n (f) The provisions of sections nine and ten of this chapter are not\naffected by this section and will remain in full force and effect.\n (g) The commissioner is authorized to promulgate any regulations\nnecessary to implement this section.\n * NB Effective December 31, 2029\n