§ 1703. Information returns relating to payments made in settlement of
payment card and third party network transactions. 1. (a) Every payment
settlement entity, third party settlement organization, electronic
payment facilitator or other third party acting on behalf of a payment
settlement entity, all as defined in section 6050W of the internal
revenue code and referred to herein as "a reporting entity," required to
file information returns pursuant to that section shall, within thirty
days of the filing thereof, file with the department in such form and
manner as prescribed by the commissioner either (i) a duplicate of all
such information returns or (ii) a duplicate of such information returns
related to participating payees, as defined in section 6050W of the
internal revenue code, with a New York state address or New York state
taxpayers. The commissioner may require that such returns be filed
electronically.

(b) To facilitate accurate reporting by the entities required to file
information returns pursuant to this section, the department shall
provide a list or database of New York state taxpayers no later than
forty-five days prior to the information reporting deadline, in such
form and manner as prescribed by the commissioner. The information
included in such list or database shall not be used by a reporting
entity for any purpose other than producing and filing information
returns pursuant to this section.

(c) Any information received by the department on an information
return filed pursuant to this section, concerning a person who is not
subject to tax in New York, or is not subject to any requirement imposed
by or pursuant to the authority of this chapter, may not be used by the
department. The department shall not redisclose any information received
on an information return filed pursuant to this section, except that it
may disclose to the commissioner of finance of the city of New York, for
the purpose of the administration of laws relating to taxes or charges
collected by the commissioner of finance of the city of New York,
information received on such returns concerning any person or entity
with a New York city address or that is a New York city taxpayer or that
is required to pay New York city taxes and/or charges or that is subject
to any reporting requirement pursuant to New York city tax laws.

2. (a) Any reporting entity failing to file an information return
required pursuant to subdivision one of this section within the time
prescribed will be subject to a penalty of fifty dollars for each
failure, if failure is for not more than one month, with an additional
fifty dollars for each month or fraction thereof during which each
failure continues. However, the total amount of penalty imposed on a
reporting entity may not exceed two hundred fifty thousand dollars
annually.

(b) The commissioner may waive all or any portion of any penalty
imposed by this subdivision with respect to any violation if (i) the
commissioner determines that the failure to timely file a return, was
due to reasonable cause and not due to willful neglect, or (ii)
rescinding the penalty would promote compliance with the requirements of
this chapter and effective tax administration.