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    IT-653 and Estimated Taxes

    As discussed in our posts on September 30, 2021, September 9, 2021, August 26, 2021 and June 3, 2021, the New York State pass-through entity tax (PTET) is effective for the 2021 tax year.

    New York State’s draft 2021 versions of Form IT-653, Pass-Through Entity Tax Credit, and Form IT-2105.9, Underpayment of Estimated Tax by Individuals and Fiduciaries, provide important information about the interaction of the pass-through entity tax credit with the estimated tax requirement for the 2021 tax year.

    The pass-through entity tax credit will not be considered when determining if a taxpayer has made sufficient payments to meet the safe harbor that uses 100% or 110% of the prior year tax.  As a result, any taxpayer who is attempting to meet the prior-year safe harbor must continue the withholding and/or estimated tax payments that he or she previously scheduled for the 2021 tax year.

    Our upcoming seminars in December and January will provide in-depth information, strategies and considerations related to this pass-through entity tax.  If you are not already registered for our seminars, register here.

    The information provided herein is provided with the understanding that the author and publisher are not engaged in rendering legal, accounting or other professional service. As such, M + O = CPE, Inc. and the author disclaim any responsibility or liability for the information supplied herein or the application of said information.