Penalties For NY Taxpayers Who Fail To File Electronically

The New York State Department of Taxation wants all tax returns filed electronically this year.   In years past, they have assessed penalties to Paid Income Tax Preparers as an “incentive” to file returns they prepare electronically.  This year, they have gone one step further. New York is now assessing penalties directly to the tax payer as well as the tax preparer:

New penalties apply for failure to e-file. If a preparer doesn’t e-file a required return, the Tax Department may impose a penalty on the preparer and the taxpayer.

Client penalties


Failure to e-file

$25 penalty per tax document for individual taxpayers
$50 penalty per tax document for all other taxpayers

Failure to e-pay

$25 penalty per payment for individual taxpayers
$50 penalty per payment for all other taxpayers

In addition:

  • A paper document is subject to the penalty imposed for that tax type for failure to file a return or report. (This doesn’t apply to income tax returns.)
  • Any overpayment claimed on a paper tax document that was required to be electronically filed will not be eligible to receive interest until the document is filed electronically

Please contact an R&G Brenner representative if you are accustomed to filing your tax returns without electronic filing.  We offer free electronic filing and many other money saving promotions.

Source: NY State Department of Taxation