New York extends 2022 tax year pass-through entity tax election due date; requires estimated payments

May 2022

In brief

On May 6, Governor Kathy Hochul (D) signed into law S8948, which amends the recently enacted changes to the state pass-through entity tax (PTET) by extending the election due date for the current year and by requiring estimated payments. (Read our Insight on the previously enacted changes here.)

The new amendments allow eligible partnerships and S corporations that missed the March 15, 2022 deadline for electing into the PTET to now have until September 15, 2022 to make the election.

New election due date for 2022

A9009-C; S8009-C, enacted on April 9, previously amended the state‚Äôs PTET by creating a new S corporation category for entities with all resident shareholders. As originally enacted, A9009-C; S8009-C required a resident S corporation to make its election for the 2022 tax year on March 15, 2022, which was prior to the April 9 legislative enactment. Consequently, S8948 extends the election due date to September 15, 2022, allowing resident S corporations to make an election for the current tax year. S8948 also extends the March 15, 2022 election deadline to September 15, 2022 for all eligible entities, including partnerships.

Estimated payments required

S8948 also provides that for tax year 2022, a PTET election that is made after March 15, 2022 and before June 15, 2022 will only be valid if an estimated tax payment is made with the election that is 25% of the required annual payment. Additionally, if an election is made after June 15, 2022 and before September 15, 2022, then a payment of 50% of the required annual payment must be made with the election to be valid. 

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Brian Rebhun

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Mike Zargari

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