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A01989 Summary:

BILL NOA01989A
 
SAME ASNo Same As
 
SPONSORPaulin
 
COSPNSR
 
MLTSPNSR
 
Amd §§861, 864, 868 & 871, Tax L
 
Relates to the timing of annual tax elections and the amount of the required installments.
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A01989 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         1989--A
 
                               2025-2026 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 14, 2025
                                       ___________
 
        Introduced by M. of A. PAULIN -- read once and referred to the Committee
          on  Ways  and  Means  --  committee  discharged, bill amended, ordered
          reprinted as amended and recommitted to said committee
 
        AN ACT to amend the tax law, in relation to the  timing  of  annual  tax
          elections

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Subsection (c) of section 861 of the tax law, as amended by
     2  section 2 of subpart C of part J of chapter 59 of the laws of  2023,  is
     3  amended to read as follows:
     4    (c) The annual election must be made on or before [the due date of the
     5  first  estimated  payment under section eight hundred sixty-four of this
     6  article] September fifteenth and will take effect for the current  taxa-
     7  ble  year.  Only  one election may be made during each calendar year. An
     8  election made under this section is irrevocable  after  [the  due  date]
     9  September fifteenth of the taxable year.
    10    § 2. Subsection (b) of section 864 of the tax law, as added by section
    11  1 of part C of chapter 59 of the laws of 2021, paragraph 3 as amended by
    12  chapter 555 of the laws of 2022, is amended to read as follows:
    13    (b)  General. The estimated tax shall be paid as follows for an elect-
    14  ing partnership and an electing S corporation:
    15    (1) [The estimated tax shall be paid] For  an  election  to  be  taxed
    16  pursuant  to  this  article that is made on or before March fifteenth of
    17  the taxable year, the electing partnership or electing S corporation  is
    18  required  to  make  estimated tax payments in four equal installments on
    19  March  fifteenth,  June  fifteenth,  September  fifteenth  and  December
    20  fifteenth  in  the calendar year prior to the year in which the due date
    21  of the return required by this  article  falls.    The  amount  of  each
    22  installment shall be twenty-five percent of the required annual payment.
    23    (2)  [The  amount  of  any  required  installment shall be twenty-five
    24  percent of the required annual payment.] For an  election  to  be  taxed
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02020-02-5

        A. 1989--A                          2
 
     1  pursuant  to  this article that is made after March fifteenth but before
     2  June fifteenth in the taxable year, the electing partnership or electing
     3  S corporation is required to make an  estimated  tax  payment  with  its
     4  election  that  represents  twenty-five  percent  of the required annual
     5  payment.   The electing partnership  or  electing  S  corporation  shall
     6  further make payments on June fifteenth, September fifteenth, and Decem-
     7  ber  fifteenth  in  the calendar year prior to the year in which the due
     8  date of the return required by this  article  falls,  which  shall  each
     9  represent twenty-five percent of the required annual payment.
    10    (3)  For an election to be taxed pursuant to this article that is made
    11  on or after June fifteenth but before September fifteenth in the taxable
    12  year, the electing partnership or electing S corporation is required  to
    13  make  an  estimated  tax payment with its election that represents fifty
    14  percent of the required annual  payment.  The  electing  partnership  or
    15  electing   S  corporation  shall  further  make  payments  on  September
    16  fifteenth and December fifteenth in the calendar year prior to the  year
    17  in  which  the  due  date  of the return required by this article falls,
    18  which shall each represent twenty-five percent of  the  required  annual
    19  payment.
    20    (4)  For an election to be taxed pursuant to this article that is made
    21  on September fifteenth in the taxable year, the electing partnership  or
    22  electing S corporation is required to make an estimated tax payment with
    23  its election that represents seventy-five percent of the required annual
    24  payment.  The  electing  partnership  or  electing  S  corporation shall
    25  further make a payment on December fifteenth in the calendar year  prior
    26  to the year in which the due date of the return required by this article
    27  falls,  which shall represent twenty-five percent of the required annual
    28  payment.
    29    [(3)] (5) Notwithstanding paragraph four of subsection (c) of  section
    30  six  hundred eighty-five of this chapter, the required annual payment is
    31  the lesser of: (A) ninety percent of the tax shown on the return for the
    32  taxable year; or (B) one hundred percent of the tax shown on the  return
    33  of  the electing partnership or electing S corporation for the preceding
    34  taxable year.
    35    § 3. Subsection (c) of section 868 of  the  tax  law,  as  amended  by
    36  section  7  of subpart C of part J of chapter 59 of the laws of 2023, is
    37  amended to read as follows:
    38    (c) The annual election to be taxed pursuant to this article  must  be
    39  made  on  or  before  [the due date of the first estimated payment under
    40  section eight hundred sixty-four of this  chapter]  September  fifteenth
    41  and  will take effect for the current taxable year. Only one election to
    42  be taxed pursuant to this article may be made during each calendar year.
    43  An election made under this section is irrevocable after [such due date]
    44  September fifteenth of the taxable year.  To the extent an election made
    45  under section eight hundred sixty-one of  this  chapter  is  revoked  or
    46  otherwise  invalidated  an  election made under this section is automat-
    47  ically invalidated.
    48    § 4. Subsection (b) of section 871 of the tax law, as added by section
    49  1 of subpart B of part MM of chapter 59 of the laws of 2022, paragraph 3
    50  as amended by chapter 555 of the laws of 2022, is  amended  to  read  as
    51  follows:
    52    (b) General. Except as provided in subsection (c) of this section, the
    53  estimated  tax shall be paid as follows for an electing city partnership
    54  and an electing city resident S corporation:
    55    (1) [The estimated tax shall be paid] For  an  election  to  be  taxed
    56  pursuant  to  this  article that is made on or before March fifteenth in

        A. 1989--A                          3
 
     1  the taxable year, the electing  city  partnership  or  electing  city  S
     2  corporation  is  required  to make estimated tax  payments in four equal
     3  installments on March fifteenth, June fifteenth, September fifteenth and
     4  December  fifteenth  in the calendar year prior to the year in which the
     5  due date of the return required by this article falls.   The  amount  of
     6  each  installment  shall  be  twenty-five percent of the required annual
     7  payment.
     8    (2) [The amount of  any  required  installment  shall  be  twenty-five
     9  percent  of  the  required  annual payment.] For an election to be taxed
    10  pursuant to this article that is made after March fifteenth  but  before
    11  June  fifteenth  in  the  taxable year, the electing city partnership or
    12  electing city S corporation is required to make an estimated tax payment
    13  with its election that represents twenty-five percent  of  the  required
    14  annual  payment. The electing city partnership or electing city S corpo-
    15  ration  shall  further  make  payments  on  June  fifteenth,   September
    16  fifteenth, and December fifteenth in the calendar year prior to the year
    17  in  which  the  due  date  of the return required by this article falls,
    18  which shall each represent twenty-five percent of  the  required  annual
    19  payment.
    20    (3)  For an election to be taxed pursuant to this article that is made
    21  after June fifteenth but before September fifteenth in the taxable year,
    22  the electing city partnership or electing city S corporation is required
    23  to make an estimated tax payment with its election that represents fifty
    24  percent of the required annual payment. The electing city partnership or
    25  electing city S corporation shall further  make  payments  on  September
    26  fifteenth  and December fifteenth in the calendar year prior to the year
    27  in which the due date of the return  required  by  this  article  falls,
    28  which  shall  each  represent twenty-five percent of the required annual
    29  payment.
    30    (4) For an election to be taxed pursuant to this article that is  made
    31  on  September  fifteenth in the taxable year, the electing city partner-
    32  ship or electing city S corporation is required to make an estimated tax
    33  payment with its election that represents seventy-five  percent  of  the
    34  required  annual payment. The electing city partnership or electing city
    35  S corporation shall further make a payment on December fifteenth in  the
    36  calendar  year  prior  to  the  year in which the due date of the return
    37  required by  this  article  falls,  which  shall  represent  twenty-five
    38  percent of the required annual payment.
    39    [(3)]  (5)  Without  regard  to  paragraph  four  of subsection (c) of
    40  section six hundred eighty-five of this  chapter,  the  required  annual
    41  payment  is  the  lesser  of: (A) ninety percent of the tax shown on the
    42  return for the taxable year; or (B) one hundred percent of the tax shown
    43  on the return of the electing city partnership or electing city resident
    44  S corporation for the preceding taxable year.
    45    § 5. This act shall take effect immediately and shall apply to taxable
    46  years beginning on or after January 1, 2026.
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