Checklist for PTET
Important due dates are quickly approaching for the New York pass-through entity tax (PTET).
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See pages 57 through 72 of the Tax Year 2022 M+O=CPE Individual Tax Year-End Workshop Reference Book for an update of 2022 and 2023 issues for the PTET.
Making Resident Electing S Corporation Election for 2022: S corporations that already made the New York State PTET election before the applicable due date during 2022 can make the New York State electing resident S corporation election for the 2022 tax year on or before March 15, 2023. (The electing resident S corporation election is discussed on page 67 of the Tax Year 2022 M+O=CPE Individual Tax Year-End Workshop Reference Book.) In addition, S corporations that wish to make the New York City PTET election, discussed next, must first make the electing resident S corporation election.
For 2022, this election is made as part of filing the 2022 PTET annual return. Select “Resident S Corporation” from the pulldown menu for entity type.
Making NYC PTET Election for 2022: Entities that already made the New York State PTET election before the applicable due date during 2022 can make the New York City PTET election for the 2022 tax year on or before March 15, 2023. (The New York City PTET is discussed on pages 68 to 71 of the Tax Year 2022 M+O=CPE Individual Tax Year-End Workshop Reference Book.) As discussed above, S corporations must also make the electing resident S corporation election to be eligible to make the New York City PTET election.
For 2022, this election is made by selecting “Pass-Through Entity Tax (PTET) New York City Annual Election” from the PTET forms menu. This election must be made before filing the annual PTET return.
Extensions: The annual PTET return for the 2022 tax year is due on March 15, 2023. Entities can request a 6-month extension of time to file the return, but any PTET due for the 2022 tax year must be paid on or before March 15, 2023, or the entity will be subject to penalty and interest for any tax paid after that date.
Logistics for 2023 Elections: For 2023, election for the New York State PTET and for resident electing S corporation (discussed on page 67 of the Tax Year 2022 M+O=CPE Individual Tax Year-End Workshop Reference Book) are made on the same screen. The resident electing S corporation is one of the options in a pulldown menu for “entity filing as” on the election screen.
The New York City PTET election (pages 68 to 71 of the Tax Year 2022 M+O=CPE Individual Tax Year-End Workshop Reference Book) is also listed at the bottom of the same election page, with a yes/no checkbox used to make the election in the New York City acknowledgement section. Entities making the New York City PTET election must check the yes box, while entities not making the New York City PTET election must check the no box.
The PTET election(s) must be made by the client. Practitioners cannot make the election on behalf of clients, even if they are an authorized representative.
Estimated Taxes for the 2023 Tax Year: The first quarter PTET estimated taxes for the 2023 tax year are due on March 15, 2023. Estimated tax payments can be separately scheduled in advance for each of the four quarters of 2023.
Our tax news has numerous other posts related to the pass-through entity tax. Search our tax news archive for PTET to see these earlier posts.