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May192022

2022 PTET Election Deadline Extended – A Second Bite at The Apple

BERDON STATE & LOCAL TAX TEAM

5.19.22 | Client Alert

New York Governor Hochul signed into law amendments to the previously enacted changes to the New York State Pass-Through Entity Tax (PTET). The new amendments extend the 2022 election deadline from March 15, 2022 until September 15, 2022, thereby allowing eligible partnerships and S corporations that missed the March 15 deadline to participate in the PTET.

To have a valid election under the extended election deadline, electing partnerships or S corporations must make an estimated payment with the election equal to:

  • 25% of the required annual payment, if the election is made after March 15, 2022, and before June 15, 2022; or
  • 50% of the required annual payment, if the election is made on June 15, 2022, and before September 15, 2022.
  • All electing entities must have 75% of the annual payment made by September 15, 2022.

As noted in our previous Alert “NYS 2022-2023 Budget Covers a Broad Field” (see the first link below), for 2022, special rules apply to electing “resident” S corporations (“RSC”). RSCs have until March 15, 2023, to certify the New York Resident status of their shareholders.

  • For 2022 only, the RSC is required to make the first and second estimated tax payments based only on New York source income.
  • For 2022 only, RSCs are required to “catch up” and pay 75% of estimated taxes based on both New York and non-New York source income by September 15, 2022.

To learn more about the previously enacted changes and the PTET in general, see below:

NYS 2022-2023 Budget Covers A Broad Field: Expanded NY PTET, New NYC PTET, Extended Brownfield Credits, Middle Class Tax Cut, Small Business Relief, & More

The NYS Pass-Through Entity Tax … Pay This Tax to Pay Less Tax

If you have questions about this opportunity, contact Wayne K. Berkowitz at 212.331.7465 | wberkowitz@berdonllp.com or Richard Goldstein at 212.331.7557 | rgoldstein@berdonllp.com or reach out to your Berdon tax advisor.

Berdon LLP New York Accountants

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