NY PTET Overpayments

As discussed on pages 61 through 80 of the Tax Year 2021 M+O=CPE Individual Tax Year-End Workshop Reference Book, entities may elect to be subject to the New York pass-through entity tax (PTET).

When filing the annual PTET return using the webfile utility in an entity’s Business Online Services account, if the entity voluntarily made an estimated tax payment for the PTET, the estimated tax payment may exceed the balance of PTET due for the year, which would result in an overpayment on the PTET annual return.

New York’s webfile utility does not presently offer an option to apply such an overpayment to PTET estimated taxes for the 2022 tax year.  Rather, New York will send a refund to the entity, apparently by check.

Entities that wish to elect to be subject to the PTET for the 2022 tax year will need to make separate estimated tax payments, instead of being able to apply any refund from the prior year.  The election to be subject to the PTET for the 2022 tax year and the estimated tax payment for the first quarter of 2022 are both due on March 15, 2022.

Our earlier posts that discuss the passthrough-entity tax are: February 10, 2022, January 27, 2022, January 25, 2022,  January 18, 2022,  December 16, 2021, December 14, 2021, December 6, 2021, November 11, 2021, September 30, 2021, September 9, 2021, August 26, 2021 and June 3, 2021.