Reminder: New York State Pass-Through Entity Tax (PTET) Annual Election Deadline Is Oct. 15By Jennifer Prendamano | James (Jay) M. Brower, Jr. | September 29, 2021
The election to participate in the New York State Pass-Through Entity Tax (PTET) for the 2021 tax year is due by October 15, 2021.
Earlier this year, the New York State Legislature enacted a new PTET that may provide individual investors in partnerships and S corporations with a valuable federal income tax benefit. Please see our previous guidance on that subject here.
An authorized person can elect into the PTET on behalf of an eligible entity through the entity's New York State Business Online Services account. If the entity does not have a Business Online Services account, the authorized person will need to create one to file the annual PTET election online. It should be noted that tax professionals and advisors may not make the PTET election on behalf of their clients.
For partnerships, the election must be made by an individual partner, member or other person who is authorized to bind the entity. For S Corporations, the election is made by a corporate officer, shareholder or manager who is authorized to bind the entity.
To file the online annual PTET election:
Log in to the eligible entity’s New York State Business Online Services account.
If the entity does not currently have a New York State Business Online Services account, the authorized person of the entity will need to create an account at this website.
Once you have logged into the Business Online Services account, select the ≡ Services menu in the upper-left corner of the Account Summary homepage.
Depending on the type of entity for which you are making the election, select Corporation tax or Partnership tax, then select PTET web file from the expanded menu (see example below).
On the Form Selection page, select Pass-Through Entity Tax (PTET) Annual Election.
Once the annual election form is filled out, the authorized person must electronically sign and attest to having the entity's authorization to file the election.
It should be noted that if an electing entity has more than one tax year within a calendar year, it is permitted to make only one election during each calendar year.
As is mentioned above, the election must be filed no later than October 15, 2021, to be effective for the current calendar year. Due to the possibility of technical issues in setting up a Business Online Services account and/or making the PTET election, Marks Paneth LLP recommends that businesses wanting to make the election do so well in advance of the deadline. Businesses that do encounter problems in setting up an account or making an election will need to call the New York Department of Taxation and Finance to resolve them.
If you would like more information regarding making the New York PTET election and you need guidance, please contact Jennifer Prendamano, Director, Tax Advisory Services, at email@example.com or Jay Brower, Leader, State and Local Tax, at firstname.lastname@example.org.
About Jennifer Prendamano
Jennifer Prendamano, JD, is a Director in the Tax Services Group at Marks Paneth LLP. To this role, she brings nearly 20 years’ experience in tax controversy matters at the federal, state and local levels as well as strategic state tax planning and consulting. Ms. Prendamano routinely handles complex state and local tax issues for large, multi-state corporations as well as high-net-worth individuals, and focuses on IRS examinations, state and local income tax examinations at... READ MORE +
About James (Jay) M. Brower, Jr.
Jay Brower, CPA, is a Partner of corporate and individual tax compliance and research services at Marks Paneth, LLP. He has more than 20 years of professional experience at the federal, state, and local levels. Mr. Brower's duties also include the development of tax planning and implementation strategies, as well as education and development of the firm's professionals. Mr. Brower provides tax planning and compliance services to clients in the manufacturing, commercial fishing, telecommunications, professional... READ MORE +