§ 17-04 Mandatory Electronic Filing and Payment.
RCNY § 17-04
(a)Definitions. For purposes of this section: (1) "Authorized tax documents" means the (i) New York City General Corporation Tax Forms NYC-4S, NYC-4SEZ and NYC-3L, (ii) New York City Unincorporated Business Tax Forms NYC-204 and NYC-204EZ, and (iii) Form NYC-EXT, when filed to request an extension for filing any of the aforementioned forms.
(2)"Electronic" means computer technology.
(3)"Original tax document" means a tax document that is filed during the calendar year for which that tax document is required or permitted to be filed. Such term includes extensions, amended returns, returns for prior years, returns for estimated tax payments and any other New York City tax documents regardless of whether such documents are defined in this subdivision as authorized tax documents.
(4)"Tax" means any tax or other matter administered by the Commissioner of Finance pursuant to the Administrative Code or any other provision of law.
(5)"Tax document" means a return, report or any other document relating to a tax or other matter administered by the Commissioner of Finance.
(6)"Tax return preparer" means any person who prepares for compensation, or who employs or engages one or more persons to prepare for compensation, any authorized tax document. For purposes of this section, the term "tax return preparer" also includes a payroll service.
(7)"Tax software" means any computer software program intended for tax return preparation purposes. The term "tax software" includes, but is not limited to, an off-the-shelf software program loaded onto a tax return preparer's or taxpayer's computer, an online tax preparation application, or a tax preparation application hosted by the Department of Finance.
(b)Who must file and pay electronically. Notwithstanding anything to the contrary in this title, for filings made during any calendar year beginning on or after January 1, 2011, (1) tax return preparers as described in subdivision (c) of this section, and (2) entities who meet the criteria specified in subdivision (d) of this section, are required to file authorized tax documents electronically. In any case in which authorized tax documents are required to be filed electronically, the taxpayer shall pay any tax liability or other amount due shown on, or required to be paid with, an authorized tax document, by means of an electronic funds transfer.
(c)Filing by a tax return preparer.
(1)A tax return preparer who (i) prepared more than one hundred original tax documents during any calendar year beginning on or after January 1, 2009, and (ii) prepares one or more authorized tax documents using tax software in any succeeding calendar year shall file electronically all authorized tax documents prepared by such tax return preparer for that succeeding calendar year (other than the calendar year beginning on January 1, 2010) and for each subsequent calendar year thereafter.
(d)Filing by a taxpayer. A corporation subject to tax under Chapter 6 of Title 11 of the Administrative Code of the City of New York or an unincorporated entity subject to tax under Chapter 5 of Title 11 of the Administrative Code of the City of New York that (1) does not utilize a tax return preparer to prepare an authorized tax document during any calendar year beginning on or after January 1, 2010, and (2) prepares that document itself using tax software shall file electronically all authorized tax documents prepared by such taxpayer using tax software for that calendar year and for each subsequent calendar year thereafter.
(e)Failure to file or pay electronically. With respect to authorized tax documents that are filed in any calendar year that begins on or after January 1, 2011: (1) Tax return preparer. If a tax return preparer is required to file authorized tax documents electronically pursuant to this section, and that preparer fails to file one or more of those documents electronically, then that preparer shall be subject to a penalty of fifty dollars for each failure to file electronically an authorized tax document, unless it is shown that the failure is due to reasonable cause and not due to willful neglect. For purposes of this paragraph, reasonable cause shall include, but not be limited to, a taxpayer's election not to file electronically the authorized tax document.
