New York Pass-Through Entity Tax Election Deadline Extended

2022-05-06T09:53:22-05:00

Legislators in New York have responded to the requests of taxpayers and tax practitioners for an extension to utilize the SALT cap workaround for the tax year 2022. The legislation NY State Senate Bill S8948 (nysenate.gov) extends the election date deadline for the tax year 2022 until September 15, 2022. The extension will provide taxpayers that missed the March 15, 2022 deadline an opportunity to elect S Corporation status for the pass-through entity tax (“PTET”).

The legislation also addresses estimated payments related to PTET for the tax year 2022. Depending on the date of the election, New York will require estimated tax payments to validate the election. Elections made before June 15, 2022, require an estimated payment of 25% of the annual payment. Elections made after June 15, 2022, and before September 15, 2022, require an estimated payment of 50% of the annual payment.

New York’s Governor, Kathy Hochul, is expected to sign the legislation. Please check our website for additional details on the PTET extension update as they become available.

If you have questions on the New York’s legislation or other SALT matters, please contact HBK’s SALT Advisory Group at hbksalt@hbkcpa.com.

About the Author(s)
Matt Dodge is a member of the HBK State and Local Tax (SALT) practice with a focus on sales/use tax. Matt has vast experience in the construction, oil & gas, manufacturing, retail, service provider and transportation industries. He can be reached at 724-934-5300, or by email at mdodge@hbkcpa.com.
Hill, Barth & King LLC has prepared this material for informational purposes only. Any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or under any state or local tax law or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. Please do not hesitate to contact us if you have any questions regarding the matter.

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