What is the penalty if I don comply with the mandate?
The law provides for a penalty of $50 for each return that is not e-filed, unless you can establish that the taxpayer opted-out of e-filing, or you have other reasonable cause for not e-filing the return. • What if my client does not want to e-file? The law includes a provision that allows a client to opt-out of e-file. The client must sign an Opt-out/Reasonable Cause Record for Tax Return Preparers. If it is a joint return, both spouses must sign. If the client(s) opts out of e-filing an extension, and opts out of e-filing the tax return, separate Opt-out/Reasonable Cause Record for Tax Return Preparers are required for the extension and the return. You must retain the Opt-out/Reasonable Cause Record for Tax Return Preparers in your records for 3 years. • When do I need an Opt-out/Reasonable Cause Record for Tax Return Preparers? You must have an Opt-out/Reasonable Cause Record for Return Preparers when: • A tax return or extension can be e-filed, but the client does not want to e-fil
The law provides for a penalty of $50 for each tax document that is not e-filed unless your client opts out, or you have other reasonable cause for not e-filing. In addition, the taxpayer will be subject to a $50 per tax document penalty for failing to electronically pay a balance due. The Department cant abate the payment penalty for reasonable cause • What if my client does not want to e-file? Your client can opt-out of e-filing an authorized tax document by signing an Opt-out/Reasonable Cause Record for Tax Return Preparers. A separate Opt-out/Reasonable Cause Record for Tax Return Preparers is required for each authorized tax document that is not e-filed. You are required to retain a copy of the Opt-out/Reasonable Cause Record for Tax Return Preparers in your records for 5 years. • The software that I use to e-file corporation tax documents does not support all document types or attachments. Will I be penalized for not e-filing those returns If you are using NYS approved e-file sof
