Bill Text: NY A00135 | 2017-2018 | General Assembly | Introduced

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Bill Title: Repeals penalties for failure to electronically file or electronically pay certain tax documents.

Spectrum: Slight Partisan Bill (Democrat 14-6)

Status: (Introduced - Dead) 2018-01-03 - referred to ways and means [A00135 Detail]

Download: New_York-2017-A00135-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                           135
                               2017-2018 Regular Sessions
                   IN ASSEMBLY
                                       (Prefiled)
                                     January 4, 2017
                                       ___________
        Introduced  by M. of A. CAHILL -- Multi-Sponsored by -- M. of A. ABINAN-
          TI, CRESPO, FINCH, FITZPATRICK,  FRIEND,  GLICK,  GOODELL,  GOTTFRIED,
          GUNTHER,  JAFFEE,  LUPARDO,  MAGEE,  McDONOUGH, McLAUGHLIN, O'DONNELL,
          RAIA, ROSENTHAL, SALADINO, SCHIMMINGER, WEPRIN, ZEBROWSKI -- read once
          and referred to the Committee on Ways and Means
        AN ACT to amend the tax law, in  relation  to  repealing  penalties  for
          failure to electronically file or electronically pay certain tax docu-
          ments
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Subdivision (e) of section 29 of the tax law, as amended by
     2  section 13 of part U of chapter 61 of the laws of 2011, paragraph  2  as
     3  amended  by  section 4 and paragraph 4 as amended by section 5 of part G
     4  of chapter 59 of the laws of 2012, is amended to read as follows:
     5    (e) Failure to electronically file or electronically pay.  [(1)  If  a
     6  tax  return  preparer is required to file authorized tax documents elec-
     7  tronically pursuant to subdivision (b) of this section, and that prepar-
     8  er fails to file one or more of  those  documents  electronically,  then
     9  that  preparer  will  be  subject to a penalty of fifty dollars for each
    10  failure to electronically file an authorized tax document, unless it  is
    11  shown that the failure is due to reasonable cause and not due to willful
    12  neglect.
    13    (2)  If  a  taxpayer is required to electronically file any authorized
    14  tax documents or electronically pay any tax liability  or  other  amount
    15  due  shown  on,  or required to be paid with, an authorized tax document
    16  required to be filed electronically pursuant to subdivision (b)  or  (c)
    17  of  this  section, and that taxpayer fails to electronically file one or
    18  more of those tax documents or electronically pay one or more  of  those
    19  liabilities  or other amounts due, then that taxpayer will be subject to
    20  a penalty of fifty dollars for each failure to electronically  file  any

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01602-01-7
        A. 135                              2

     1  authorized  tax  document  or  electronically  pay any tax, unless it is
     2  shown that the failure is due to reasonable cause and not due to willful
     3  neglect. In addition, any taxpayer that fails to electronically file  an
     4  authorized  tax  document  for  any  tax  will be subject to the penalty
     5  imposed under the applicable article for the failure to file a return or
     6  report, whether a  paper  return  or  report  has  been  filed  or  not.
     7  Provided,  however, that this subdivision shall not apply to an individ-
     8  ual taxpayer with respect to his or her personal tax documents that  are
     9  required  by or pursuant to the authority of article twenty-two, thirty,
    10  thirty-A or thirty-B of this chapter.
    11    (3) The penalties provided for by this subdivision must be  paid  upon
    12  notice  and demand, and will be assessed, collected and paid in the same
    13  manner as the tax to which the electronic transaction relates.  However,
    14  if  the electronic transaction relates to another matter administered by
    15  the commissioner, then the penalty will be assessed, collected and  paid
    16  in  the  same manner as prescribed by article twenty-seven of this chap-
    17  ter.
    18    (4) If a taxpayer or tax return preparer fails to electronically  file
    19  an  authorized  tax document when required to do so pursuant to subdivi-
    20  sion (b) or (c) of this section, the taxpayer shall not be  eligible  to
    21  receive  interest  on any overpayment in accordance with the overpayment
    22  provisions of this chapter until such document is filed  electronically.
    23  Provided,  however, that this subdivision shall not apply to an individ-
    24  ual taxpayer with respect to his or her personal tax documents that  are
    25  required  by or pursuant to the authority of article twenty-two, thirty,
    26  thirty-A or thirty-B of this chapter] Neither tax return  preparers  nor
    27  taxpayers  shall  be subject to any penalties for their failure to elec-
    28  tronically file or electronically pay pursuant to this section.
    29    § 2. Subdivision (e) of section 29 of the tax law, as added by section
    30  1 of part UU-1 of chapter 57 of the laws of  2008  and  paragraph  1  as
    31  amended  by  section  1  of part G of chapter 57 of the laws of 2010, is
    32  amended to read as follows:
    33    (e) Failure to electronically file or electronically pay.  [(1)  If  a
    34  tax  return  preparer is required to file authorized tax documents elec-
    35  tronically pursuant to subdivision (b) of this section, and that prepar-
    36  er fails to file one or more of  those  documents  electronically,  then
    37  that  preparer  will  be  subject to a penalty of fifty dollars for each
    38  failure to electronically file an authorized tax document, unless it  is
    39  shown that the failure is due to reasonable cause and not due to willful
    40  neglect.
    41    (2)  If a taxpayer is required to electronically pay any tax liability
    42  or other amount due shown on, or required to be paid with, an authorized
    43  tax document required to be filed electronically pursuant to subdivision
    44  (b) or (c) of this section, and that taxpayer  fails  to  electronically
    45  pay  one  or  more  of those liabilities or other amounts due, then that
    46  taxpayer will be subject to a penalty of fifty dollars for each  failure
    47  to electronically pay.
    48    (3)  The  penalties provided for by this subdivision must be paid upon
    49  notice and demand, and will be assessed, collected and paid in the  same
    50  manner  as the tax to which the electronic transaction relates. However,
    51  if the electronic transaction relates to another matter administered  by
    52  the  commissioner, then the penally will be assessed, collected and paid
    53  in the same manner as prescribed by article twenty-seven of  this  chap-
    54  ter]  Neither tax return preparers nor taxpayers shall be subject to any
    55  penalties for their failure to electronically file or electronically pay
    56  pursuant to this section.
        A. 135                              3
     1    § 3. This act shall take effect on the one hundred twentieth day after
     2  it shall have become a law; provided, however  that  the  amendments  to
     3  subdivision (e) of section 29 of the tax law made by section one of this
     4  act  shall  be  subject  to the expiration and reversion of such section
     5  pursuant  to  section 23 of part U of chapter 61 of the laws of 2011, as
     6  amended, when upon such date the provisions of section two of  this  act
     7  shall take effect. Effective immediately, the addition, amendment and/or
     8  repeal  of  any  rule  or regulation necessary for the implementation of
     9  this act on its effective date is authorized to be  made  on  or  before
    10  such date.