S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  9528

                          I N  A S S E M B L Y

                             March 12, 2012
                               ___________

Introduced by M. of A. CAHILL -- 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:

  Section 1. Subdivision (e) of section 29 of the tax law, as amended by
section  13  of  part U of chapter 61 of the laws of 2011, is amended to
read as follows:
  (e) Failure to electronically file or electronically pay.  [(1)  If  a
tax  return  preparer is required to file authorized tax documents elec-
tronically pursuant to subdivision (b) of this section, and that prepar-
er fails to file one or more of  those  documents  electronically,  then
that  preparer  will  be  subject to a penalty of fifty dollars for each
failure to electronically file an authorized tax document, unless it  is
shown that the failure is due to reasonable cause and not due to willful
neglect.
  (2)  If  a  taxpayer is required to electronically file any authorized
tax documents or electronically pay any tax liability  or  other  amount
due  shown  on,  or required to be paid with, an authorized tax document
required to be filed electronically pursuant to subdivision (b)  or  (c)
of  this  section, and that taxpayer fails to electronically file one or
more of those tax documents or electronically pay one or more  of  those
liabilities  or other amounts due, then that taxpayer will be subject to
a penalty of twenty-five dollars for each individual taxpayer's  failure
to  electronically file an authorized tax document required by or pursu-
ant to the authority of article twenty-two, thirty, thirty-A or thirty-B
of this chapter or electronically pay any personal income tax imposed by
or pursuant to the authority of any of those articles, and fifty dollars
for each failure to electronically file any other authorized  tax  docu-
ment  or  electronically  pay any other tax, unless it is shown that the
failure is due to reasonable cause and not due to  willful  neglect.  In
addition,  any  taxpayer that fails to electronically file an authorized
tax document for any tax other than an individual taxpayer who fails  to
file  an  authorized tax document for any personal income tax imposed by
or pursuant to the authority of article twenty-two, thirty, thirty-A  or
              

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14897-01-2

A. 9528                             2

thirty-B  will  be  subject  to the penalty imposed under the applicable
article for the failure to file a return  or  report,  whether  a  paper
return or report has been filed or not.
  (3)  The  penalties provided for by this subdivision must be paid upon
notice and demand, and will be assessed, collected and paid in the  same
manner  as the tax to which the electronic transaction relates. However,
if the electronic transaction relates to another matter administered  by
the  commissioner, then the penalty will be assessed, collected and paid
in the same manner as prescribed by article twenty-seven of  this  chap-
ter.
  (4)  If a taxpayer or tax return preparer fails to electronically file
an authorized tax document when required to do so pursuant  to  subdivi-
sion  (b)  or (c) of this section, the taxpayer shall not be eligible to
receive interest on any overpayment in accordance with  the  overpayment
provisions  of this chapter until such document is filed electronically]
NEITHER TAX RETURN PREPARERS NOR  TAXPAYERS  SHALL  BE  SUBJECT  TO  ANY
PENALTIES FOR THEIR FAILURE TO ELECTRONICALLY FILE OR ELECTRONICALLY PAY
PURSUANT TO THIS SECTION.
  S 2. Subdivision (e) of section 29 of the tax law, as added by section
1  of  part  UU-1  of  chapter 57 of the laws of 2008 and paragraph 1 as
amended by section 1 of part G of chapter 57 of the  laws  of  2010,  is
amended to read as follows:
  (e)  Failure  to  electronically file or electronically pay. [(1) If a
tax return preparer is required to file authorized tax  documents  elec-
tronically pursuant to subdivision (b) of this section, and that prepar-
er  fails  to  file  one or more of those documents electronically, then
that preparer will be subject to a penalty of  fifty  dollars  for  each
failure  to electronically file an authorized tax document, unless it is
shown that the failure is due to reasonable cause and not due to willful
neglect.
  (2) If a taxpayer is required to electronically pay any tax  liability
or other amount due shown on, or required to be paid with, an authorized
tax document required to be filed electronically pursuant to subdivision
(b)  or  (c)  of this section, and that taxpayer fails to electronically
pay one or more of those liabilities or other  amounts  due,  then  that
taxpayer  will be subject to a penalty of fifty dollars for each failure
to electronically pay.
  (3) The penalties provided for by this subdivision must be  paid  upon
notice  and demand, and will be assessed, collected and paid in the same
manner as the tax to which the electronic transaction relates.  However,
if  the electronic transaction relates to another matter administered by
the commissioner, then the penally will be assessed, collected and  paid
in  the  same manner as prescribed by article twenty-seven of this chap-
ter] NEITHER TAX RETURN PREPARES NOR TAXPAYERS SHALL BE SUBJECT  TO  ANY
PENALTIES FOR THEIR FAILURE TO ELECTRONICALLY FILE OR ELECTRONICALLY PAY
PURSUANT TO THIS SECTION.
  S 3. This act shall take effect on the one hundred twentieth day after
it  shall  have  become  a law; provided, however that the amendments to
subdivision (e) of section 29 of the tax law made by section one of this
act shall be subject to the expiration and  reversion  of  such  section
pursuant  to  section 23 of part U of chapter 61 of the laws of 2011, as
amended, when upon such date the provisions of section two of  this  act
shall take effect. Effective immediately, the addition, amendment and/or
repeal  of  any  rule  or regulation necessary for the implementation of
this act on its effective date is authorized to be  made  on  or  before
such date.