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October 15, 2021
2021-1879

Law firm clients | New York State offering limited relief for taxpayers having difficulty with PTET election process - must act by October 15, 2021 for 2021 election

Law firm clients in New York should note that the state is providing assistance to those who have had trouble accessing an online application for the Pass-Through Entity Tax (PTET) Annual Election, which is due today, October 15, 2021. (PTET Call Center representatives will be available on October 15 from 8:30 a.m. to midnight to provide assistance.)

Importantly, the state is also instructing those who, for one of three specific reasons, have been unable to opt into the PTET election by the October 15, 2021 deadline to "submit a question to our support team by October 15." The acceptable reasons are:

  1. You are waiting for the state to process a Form CT-6, Election by a Federal S Corporation to be Treated As a New York S Corporation, that was submitted on or before October 15, 2021.
  2. You are having trouble creating or logging in to your Business Online Services account.
  3. You receive an error message when you try to opt in through your account.

When submitting your question to the state, you must explain why you could not opt in on time. Be sure to retain documentation of your issue (e.g., a screen shot of the error message) so you are able to provide it to the state if asked.

Finally, note that if you are unable to make the PTET election by the deadline and fail to submit a question to the state "with an explanation proving you have one of the issues" listed above, you may not elect into PTET for the 2021 tax year.

New York State reminds taxpayers that the PTET is an optional tax and the election is irrevocable. (For details on the PTET, see Tax Alert 2021-1675.)

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Contact Information
For additional information concerning this Alert, please contact:
 
Law Firm Industry practice
   • Shelby Saad-Callahan (shelby.saadcallahan@ey.com)
   • Jon Spisto (jon.spisto@ey.com)
 

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