Pass-Through Entity Tax Return New Guidance

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) beginning with the 2021 tax year.

New York has issued some new information about filing the annual PTET return, which is expected to be available in early February 2022.

Using the webfile system, entities will need to enter their 2021 PTET taxable income (the computation of this is discussed on pages 64 to 68 of the Tax Year 2021 M+O=CPE Individual Tax Year-End Workshop Reference Book).

Entities will also be required to enter the following for each owner: Name, Social Security number, ownership percentage, type of taxpayer, direct share of the PTET credit and (for partnerships only) New York State residency status.  This information can be manually entered for each owner if the entity has 100 or fewer owners, or it can be uploaded in a batch by the entity.  Entities with more than 100 owners are required to upload the owner information in batch to the New York webfile system.

To upload the information, entities must create a comma-delimited file, which is typically done using the .csv file format of Excel.  The State has provided details about the format of uploaded information, which is available here. 

New York has also provided an instructional video for filing the annual PTET return, which is available here.           

Our earlier posts that discuss the passthrough-entity tax are: 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.