S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    135
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (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:
 
   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.
                                                            LBD01602-01-7

 A. 135                              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.
   § 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. 135                              3
 
   § 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.