Bill Text: NY A08451 | 2023-2024 | General Assembly | Amended
Bill Title: Relates to the timing of annual tax elections and the amount of the required installments.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-03-06 - print number 8451a [A08451 Detail]
Download: New_York-2023-A08451-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 8451--A 2023-2024 Regular Sessions IN ASSEMBLY December 29, 2023 ___________ Introduced by M. of A. PAULIN -- read once and referred to the Committee on Ways and Means -- recommitted to the Committee on Ways and Means in accordance with Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said commit- tee 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] For taxable years beginning before January first, two thou- 5 sand twenty-four, the annual election must be made on or before the due 6 date of the first estimated payment under section eight hundred sixty- 7 four of this article and will take effect for the current taxable year, 8 and for taxable years beginning on or after January first, two thousand 9 twenty-four, such election must be made by September fifteenth of the 10 taxable year for which such election is being made. Only one election 11 may be made during each calendar year. An election made under this 12 section is irrevocable after the due date. 13 § 2. Subsection (b) of section 864 of the tax law, as added by section 14 1 of part C of chapter 59 of the laws of 2021, paragraph 3 as amended by 15 chapter 555 of the laws of 2022, is amended to read as follows: 16 (b) General. The estimated tax shall be paid as follows for an elect- 17 ing partnership and an electing S corporation: 18 (1) The estimated tax shall be paid 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. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD13841-04-4A. 8451--A 2 1 (2) Amount of required installment. (A) The amount of any required 2 installment shall be twenty-five percent of the required annual payment. 3 (B) In the case of any required installment, if the electing partner- 4 ship or the electing S corporation establishes that the annualized 5 income installment determined under subparagraph (B) of paragraph four 6 of subsection (c) of section six hundred eighty-five of this chapter is 7 less than the amount determined under subparagraph (A) of this para- 8 graph, the annualized income installment shall be the required install- 9 ment. Any reduction in a required installment resulting from the appli- 10 cation of this subparagraph shall be recaptured by increasing the amount 11 of the next required installment determined under this paragraph by the 12 amount of such reduction, and by increasing successive required install- 13 ments as necessary to effect full recapture. 14 (3) [Notwithstanding paragraph four of subsection (c) of section six15hundred eighty-five of this chapter, the] The required annual payment is 16 the lesser of: (A) ninety percent of the tax shown on the return for the 17 taxable year; or (B) one hundred percent of the tax shown on the return 18 of the electing partnership or electing S corporation for the preceding 19 taxable year. 20 (4) Without regard to paragraphs one and two of this subsection, if an 21 election is made on or after March fifteenth and before June fifteenth 22 of the taxable year for which such election is made, the electing part- 23 nership or electing S corporation is required to make an estimated tax 24 payment with such election in an amount equal to the first required 25 installment and if an election is made on or after June fifteenth and 26 before September fifteenth of the taxable year for which such election 27 is made, the electing partnership or electing S corporation is required 28 to make an estimated tax payment with such election in an amount equal 29 to the sum of the first and second required installments. 30 § 3. Subsection (c) of section 868 of the tax law, as amended by 31 section 7 of subpart C of part J of chapter 59 of the laws of 2023, is 32 amended to read as follows: 33 (c) [The annual election to be taxed pursuant to this article must be34made on or before the due date of the first estimated payment under35section eight hundred sixty-four of this chapter and will take effect36for the current taxable year.] Only one election to be taxed pursuant to 37 this article may be made during each calendar year. An election made 38 under this section is irrevocable after such due date. To the extent an 39 election made under section eight hundred sixty-one of this chapter is 40 revoked or otherwise invalidated an election made under this section is 41 automatically invalidated. 42 § 4. Subsection (b) of section 871 of the tax law, as added by section 43 1 of subpart B of part MM of chapter 59 of the laws of 2022, paragraph 3 44 as amended by chapter 555 of the laws of 2022, is amended to read as 45 follows: 46 (b) General. Except as provided in subsection (c) of this section, the 47 estimated tax shall be paid as follows for an electing city partnership 48 and an electing city resident S corporation: 49 (1) The estimated tax shall be paid in four [equal] installments on 50 March fifteenth, June fifteenth, September fifteenth and December 51 fifteenth in the calendar year prior to the year in which the due date 52 of the return required by this article falls. 53 (2) Amount of required installment. (A) The amount of any required 54 installment shall be twenty-five percent of the required annual payment. 55 (B) In the case of any required installment, if the electing city 56 partnership or the electing city resident S corporation establishes thatA. 8451--A 3 1 the annualized income installment determined under subparagraph (B) of 2 paragraph four of subsection (c) of section six hundred eighty-five of 3 this chapter is less than the amount determined under subparagraph (A) 4 of this paragraph, the annualized income installment shall be the 5 required installment. Any reduction in a required installment resulting 6 from the application of this subparagraph shall be recaptured by 7 increasing the amount of the next required installment determined under 8 this paragraph by the amount of such reduction, and by increasing 9 successive required installments as necessary to effect full recapture. 10 (3) [Without regard to paragraph four of subsection (c) of section six11hundred eighty-five of this chapter, the] The required annual payment is 12 the lesser of: (A) ninety percent of the tax shown on the return for the 13 taxable year; or (B) one hundred percent of the tax shown on the return 14 of the electing city partnership or electing city resident S corporation 15 for the preceding taxable year. 16 (4) Without regard to paragraphs one and two of this subsection, if an 17 election is made on or after March fifteenth and before June fifteenth 18 of the taxable year for which such election is made, the electing part- 19 nership or electing S corporation is required to make an estimated tax 20 payment with such election in an amount equal to the first required 21 installment, and if an election is made on or after June fifteenth and 22 before September fifteenth of the taxable year for which such election 23 is made, the electing partnership or electing S corporation is required 24 to make an estimated tax payment with such election in an amount equal 25 to the sum of the first and second required installments. 26 § 5. This act shall take effect immediately and shall apply to taxable 27 years beginning on or after January 1, 2024.