BILL NUMBER: S8398     REVISED 02/23/2022

SPONSOR: LIU
 
TITLE OF BILL:

An act to amend the tax law, in relation to coordinating extensions of
time to file state taxes to any extensions of time to file federal taxes

 
PURPOSE:

To allow NYS to have a corresponding tax deadline consistent with any
deadline extension by the IRS

 
SUMMARY OF PROVISIONS:

Section 1 amends paragraph a of subdivision 28 of section 171 of the tax
law to allow for an automatic extension of tax postponement relief
corresponding to any extension of tax postponement relief by the IRS

Section 2: provides the effective date and applies to tax filings due on
or after October 15, 2021

              

 
JUSTIFICATION:

Due to the destruction of records caused by the disaster flooding from
the remnants of Hurricane Ida, the IRS granted a time extension to file
the federal tax returns originally due on October 15th, 2021 to January
3rd, 2022. Correspondingly, NYS granted the same time extension for
state tax returns for the same reasons.

However, each year, the IRS is forced to shut down their e-filing system
in November to program it for the next year's filings. They were not
able to reopen that system until January 24th, 2022.  Subsequently, they
granted a further extension to February 15th, 2022, to the tax filing
that was originally due October 15th, 2021.  Only a few days before the
deadline, the NYS Department of Tax and Finance announced that there
would not be a similar extension for the State tax filing, citing a
90-day limit for extensions within the state tax law. Without the e-fil-
ing system available, New Yorkers were required to use paper filings. In
contrast, other similarly affected states, such as New Jersey and Penn-
sylvania, set a deadline that matched the federal extension or later.

The requirement to file by paper, last minute announcements, and the
early date of the NYS filing deadline created a great amount of
confusion for our taxpayers, who were already dealing with a difficult
situation recovering from the remnants of Ida. The sudden paper require-
ment, along with remote work due to the pandemic surge, many state
returns were late filed or incomplete, requiring amended returns.


This bill seeks to prevent the above situation by automatically extend-
ing state tax filing deadlines whenever the federal tax deadlines have
been extended. This bill also removes the 90-day extension limitation
and applies to all tax filings that were due one Oct 15th, 2022 and
after.

 
LEGISLATIVE HISTORY:

New Bill
 
FISCAL IMPLICATIONS:

 
EFFECTIVE DATE:
Effective immediately and shall apply to tax filings due on or after
October 15, 2021

                                 
BILL NUMBER: S8398A

SPONSOR: LIU
 
TITLE OF BILL:

An act to amend the tax law, in relation to coordinating extensions of
time to file state taxes to any extensions of time to file federal taxes

 
PURPOSE:

To allow NYS to have a corresponding tax deadline consistent with any
deadline extension by the IRS

 
SUMMARY OF PROVISIONS:

Section 1 amends paragraph a of subdivision 28 of section 171 of the tax
Law, as added by chapter 8 of the laws of 1998, is amended to allow for
an automatic extension of tax postponement relief corresponding to any
extension of tax postponement relief by the IRS

Section 2: provides the effective date and applies to tax filings due on
or after October 15, 2021
              

 
JUSTIFICATION:

Due to the destruction of records caused by the disaster flooding from
the remnants of Hurricane Ida, the IRS granted a time extension to file
the federal tax returns originally due on October 15th, 2021 to January
3rd, 2022. Correspondingly, NYS granted the same time extension for
state tax returns for the same reasons.

However, each year, the IRS is forced to shut down their e-filing system
in November to program it for the next year's filings. They were not
able to reopen that system until January 24th, 2022.  Subsequently, they
granted a further extension to February 15th, 2022, to the tax filing
that was originally due October 15th, 2021.  Only a few days before the
deadline, the NYS Department of Tax and Finance announced that there
would not be a similar extension for the State tax filing, citing a
90-day limit for extensions within the state tax law. Without the e-fil-
ing system available, New Yorkers were required to use paper filings. In
contrast, other similarly affected states, such as New Jersey and Penn-
sylvania, set a deadline that matched the federal extension or later.

The requirement to file by paper, last minute announcements, and the
early date of the NYS filing deadline created a great amount of
confusion for our taxpayers, who were already dealing with a difficult
situation recovering from the remnants of Ida. The sudden paper require-
ment, along with remote work due to the pandemic surge, many state
returns were late filed or incomplete, requiring amended returns.

This bill seeks to prevent the above situation by automatically extend-
ing state tax filing deadlines whenever the federal tax deadlines have
been extended. This bill also removes the 90-day extension limitation
and applies to all tax filings that were due one Oct 15th, 2022 and
after.

 
LEGISLATIVE HISTORY:

New Bill
 
FISCAL IMPLICATIONS:

 
EFFECTIVE DATE:
Effective immediately and shall apply to tax filings due on or after