* § 29. Mandatory electronic filing and payment. (a) For purposes of
this section, the following terms have the specified meanings:

(1) "Authorized tax document" means a tax document which the
commissioner has authorized to be filed electronically, provided however
that any return or report that includes one or more tax documents that
cannot be filed electronically shall not be deemed to be an authorized
tax document for purposes of this section.

(2) "Electronic" means computer technology.

(3) "Original tax document" means a tax document that is filed during
the calendar year for which that tax document is required or permitted
to be filed.

(4) "Tax" means any tax or other matter administered by the
commissioner pursuant to this chapter or any other provision of law.

(5) "Tax document" means a return, report or any other document
relating to a tax or other matter administered by the commissioner.

(6) "Tax return preparer" means any person who prepares for
compensation, or who employs or engages one or more persons to prepare
for compensation, any authorized tax document. For purposes of this
section, the term "tax return preparer" also includes a payroll service.

(7) "Tax software" means any computer software program intended for
tax return preparation purposes. For purposes of this section, the term
"tax software" includes, but is not limited to, an off-the-shelf
software program loaded onto a tax return preparer's or taxpayer's
computer, an online tax preparation application, or a tax preparation
application hosted by the department.

(b) (1) If a tax return preparer prepared more than one hundred
original tax documents during any calendar year beginning on or after
January first, two thousand seven, and if, in any succeeding calendar
year that tax return preparer prepares one or more authorized tax
documents using tax software, then, for that succeeding calendar year
and for each subsequent calendar year thereafter, all authorized tax
documents prepared by that tax return preparer must be filed
electronically, in accordance with instructions prescribed by the
commissioner.

(2) If a tax return preparer prepared authorized tax documents for
more than ten different taxpayers during any calendar year beginning on
or after January first, two thousand twelve, and if in any succeeding
calendar year that tax return preparer prepares one or more authorized
tax documents using tax software, then, for such succeeding calendar
year and for each subsequent calendar year thereafter, all authorized
tax documents prepared by that tax return preparer must be filed
electronically, in accordance with instructions prescribed by the
commissioner.

(c) If a taxpayer does not utilize a tax return preparer to prepare an
authorized tax document, but instead prepares that document itself using
tax software, then all authorized tax documents prepared by the taxpayer
using tax software must be filed electronically, in accordance with
instructions prescribed by the commissioner.

(d) The commissioner may require 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 to be paid by the taxpayer electronically, in accordance
with instructions prescribed by the commissioner.

(e) Failure to electronically file or electronically pay. (1) If a tax
return preparer is required to file authorized tax documents
electronically pursuant to subdivision (b) of this section, and that
preparer 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
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
individual 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
chapter.

(4) If a taxpayer or tax return preparer fails to electronically file
an authorized tax document when required to do so pursuant to
subdivision (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 individual 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.

(f) The provisions of sections nine and ten of this chapter are not
affected by this section and will remain in full force and effect.

(g) The commissioner is authorized to promulgate any regulations
necessary to implement this section.

* NB Effective until December 31, 2029

* § 29. Mandatory electronic filing and payment. (a) For purposes of
this section, the following terms have the specified meanings:

(1) "Authorized tax document" means a tax document which the
commissioner has authorized to be filed electronically.

(2) "Electronic" means computer technology.

(3) "Original tax document" means a tax document that is filed during
the calendar year for which that tax document is required or permitted
to be filed.

(4) "Tax" means any tax or other matter administered by the
commissioner pursuant to this chapter or any other provision of law;
provided, however, that the term "tax" does not include the taxes
imposed by, or pursuant to the authority of, articles twenty-two,
thirty, thirty-A or thirty-B of this chapter.

(5) "Tax document" means a return, report or any other document
relating to a tax or other matter administered by the commissioner.

(6) "Tax return preparer" means any person who prepares for
compensation, or who employs or engages one or more persons to prepare
for compensation, any authorized tax document. For purposes of this
section, the term "tax return preparer" also includes a payroll service.

(7) "Tax software" means any computer software program intended for
tax return preparation purposes. For purposes of this section, the term
"tax software" includes, but is not limited to, an off-the-shelf
software program loaded onto a tax return preparer's or taxpayer's
computer, an online tax preparation application, or a tax preparation
application hosted by the department.

(b) If a tax return preparer prepared more than one hundred original
tax documents during any calendar year beginning on or after January
first, two thousand seven, and if, in any succeeding calendar year that
tax return preparer prepares one or more authorized tax documents using
tax software, then, for that succeeding calendar year and for each
subsequent calendar year thereafter, all authorized tax documents
prepared by that tax return preparer must be filed electronically, in
accordance with instructions prescribed by the commissioner.

(c) If a taxpayer does not utilize a tax return preparer to prepare an
authorized tax document during any calendar year beginning on or after
January first, two thousand eight, but instead prepares that document
itself using tax software, then, for that calendar year and for each
subsequent calendar year thereafter, all authorized tax documents
prepared by the taxpayer using tax software must be filed
electronically, in accordance with instructions prescribed by the
commissioner.

(d) 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 must
be paid by the taxpayer electronically, in accordance with instructions
prescribed by the commissioner.

(e) Failure to electronically file or electronically pay. (1) If a tax
return preparer is required to file authorized tax documents
electronically pursuant to subdivision (b) of this section, and that
preparer 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
chapter.

(f) The provisions of sections nine and ten of this chapter are not
affected by this section and will remain in full force and effect.

(g) The commissioner is authorized to promulgate any regulations
necessary to implement this section.

* NB Effective December 31, 2029