Can New York City Partnerships or Resident S Corporations Elect to Pay Pass Through Entity Tax in 2022?

Can New York City Partnerships or Resident S Corporations Elect to Pay Pass Through Entity Tax in 2022?

In 2022, New York State enacted a law which, among other changes, aligns certain provisions of the New York City Administrative Code with the New York State Tax Law. One of these changes affects businesses that want to pay New York City Pass-Through Entity Tax (NYC PTET).

Specifically, the law amends the effective date of NYC PTET from January 1, 2023, to January 1, 2022. Here are a few important points to note:

• To make this election for 2022, taxpayers must have opted into the New York State Pass-Through Entity Tax by the State’s September 15, 2022 deadline.
• If a taxpayer made the State election above, the deadline to make the NYC PTET election is March 15, 2023.
• An electing city partnership or S corporation is not required to make estimated tax payments for the NYC PTET for taxable year 2022. However, beginning in 2023, these taxpayers will be required to make estimated payments.

Article by Zaid Butt, Director