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

                                  3309

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                            January 24, 2013
                               ___________

Introduced  by  M. of A. CAHILL, ABINANTI, GUNTHER, SCHIMMINGER, JAFFEE,
  CASTRO, MILLMAN, ZEBROWSKI, GIBSON, CRESPO, ROBERTS, ROSENTHAL, WEPRIN
  -- Multi-Sponsored by -- M. of A. ARROYO, BRAUNSTEIN, BRENNAN, DUPREY,
  FINCH, GLICK, GOODELL, GOTTFRIED, JORDAN, LUPARDO,  MAGEE,  McDONOUGH,
  McLAUGHLIN,  O'DONNELL,  RAIA, SALADINO, SCHIMEL, SWEENEY -- 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, paragraph 2 as
amended by section 4 and paragraph 4 as amended by section 5 of  part  G
of chapter 59 of the laws of 2012, 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 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.
                                                           LBD04007-01-3
              

A. 3309                             2

authorized tax document or electronically pay  any  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  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.
Provided,  however, that this subdivision shall not apply to an individ-
ual taxpayer with respect to his or her personal tax documents that  are
required  by or pursuant to the authority of article twenty-two, thirty,
thirty-A or thirty-B of this chapter.
  (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.
Provided,  however, that this subdivision shall not apply to an individ-
ual taxpayer with respect to his or her personal tax documents that  are
required  by or pursuant to the authority of article twenty-two, thirty,
thirty-A or thirty-B of this chapter] NEITHER TAX RETURN  PREPARERS  NOR
TAXPAYERS  SHALL  BE SUBJECT TO ANY PENALTIES FOR THEIR FAILURE TO ELEC-
TRONICALLY 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 PREPARERS NOR TAXPAYERS SHALL BE SUBJECT TO ANY
PENALTIES FOR THEIR FAILURE TO ELECTRONICALLY FILE OR ELECTRONICALLY PAY
PURSUANT TO THIS SECTION.

A. 3309                             3

  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.