Key Reminders when Planning to Take Advantage of the New York Pass-Through Entity Tax (PTET)

With the approaching New York Pass-Through Entity Tax (PTET) deadlines, it’s important for pass-through entities to be aware of the related due dates and deadlines in order to avoid penalties, costly fees and missed tax-saving opportunities. The New York State 2023 Fiscal Year Budget Bill made significant changes to the New York State Pass-Through Entity Tax (NYS PTET) and also introduced a New York City Pass-Through Entity Tax (NYC PTET).

Below are a few things to keep in mind as the New York PTET deadline approaches.

NYC PTET Annual Election for 2022

The 2022 NYC PTET election is still available until March 15, 2023, but you must have already been elected into the NYS PTET for 2022.

Note: An entity that did not opt into the NYS PTET by the September 15, 2022 extended election date cannot participate in the NYC PTET for the 2022 tax year.

2022 PTET Extension

2022 NYS and NYC PTET returns are due by March 15, 2023. An electing entity can, however, request an extension of six months through its Business Online Services account.

Note: This is only an extension to file the PTET return and not an extension of time allowed for payment of any taxes due.

2023 PTET Annual Election 

For those opting into the 2023 PTET for NYS and/or NYC, the election deadline is March 15, 2023. A first quarter estimate is due by March 15th as well.

It is crucial for pass-through entities in New York to remain aware of the various PTET deadlines and due dates in order to ensure timely elections, filings and payments of their tax obligations, avoid potential penalties, maintain compliance and benefit from these tax regimes.

For more information on New York’s PTET and to ensure you are in compliance with all regulations and requirements, please contact Alan Goldenberg, Principal and Leader of the State and Local Taxation and Tax Controversy groups, or your Anchin Relationship Partner.