NYC PTET Guidance

As discussed in our post on September 6, 2022, otherwise eligible S corporations, partnerships and LLCs that have New York City resident owners now have the option to elect to be subject to a brand-new voluntary New York City pass-through entity tax (PTET) system for the 2022 tax year.

New York recently issued guidance on the New York City PTET website. (https://www.tax.ny.gov/pdf/memos/ptet/m22-1c-1i.pdf).

The due date for making the NYC PTET election for the 2022 tax year is March 15, 2023. However, otherwise eligible entities must have elected to be subject to the New York State PTET for the 2022 year to make the 2022 NYC PTET election.

Estimated tax payments are not required for the NYC PTET for the 2022 tax year, but entities may wish to make voluntary estimated payments on or before December 31, 2022 in order to obtain a federal tax deduction for the 2022 tax year.

Such estimated tax payments are separate from the estimated taxes paid for the New York State PTET, so practitioners and taxpayers must wait until New York announces the availability of the option to make NYC PTET estimated tax payments for the 2022 tax year. Such payments are made using an entity’s online services account at http://www.tax.ny.gov/online/

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.

We will discuss this and other changes to the PTET for the 2022 and 2023 tax years in our upcoming seminars in December and January. If you are not already registered, register here.