New York State and New York City Pass-through Entity Tax (PTET) Updates
Extended 2022 election period: pass-through entity tax (PTET)
06 September 2022
For 2022, eligible entities may opt in to the New York State PTET through September 15, 2022.Below are links to FCC’s previous articles on the topic:
- Extended Due Dates to Elect Into PTET
- Expanded PTET Rules and NYC Changes
- NYS PTET News
If you're an authorized person whose entity wants to but has not yet made the election, you may opt in on its behalf using the online Pass-Through Entity Tax Annual Election application. The entity must make an estimated payment when it opts in.
For eligible entities that still need to elect into the PTET regime, we suggest that you do not wait until the deadline to opt in. Some entities may need assistance from NYS representatives to update their accounts before they can opt in. Making the election early ensures there is enough time to complete the process before the deadline.
New York City pass-through entity tax (NYC PTET)
Important: The governor has signed legislation allowing eligible entities to opt in to the NYC PTET for 2022.
If your entity wants to opt in, it must first opt in to the New York State PTET by September 15, 2022.
NYC will allow entities who have opted in to the New York State PTET know when the online application to opt in to the 2022 NYC PTET is available. The NYC website will have guidance about the NYC PTET soon.
Reminders
The New York State PTET and NYC PTET are optional taxes which provide NY taxpayers the opportunity to pay tax on entity income at entity level.
If you opt in to the New York State PTET, your election is irrevocable and will remain in effect for the entire year.
Only an authorized person can make the election on behalf of an eligible entity. Tax professionals cannot make the election on behalf of their clients.
Further, the legislation that NY Governor Kath Hochul signed August 31st included a provision that adopted economic nexus for NYC ($1m in NYC receipts) for tax years starting on or after January 1, 2022. These provisions mirror the NYS provisions that were previously enacted.
Please contact any of our tax professionals at FCC for additional information.