What's happening
This bill changes the annual tax election deadline to September 15 and updates payment schedules for certain partnerships and S corporations.
Why it matters
Standardizes and clarifies the annual election process. for partnerships and S corporations by setting a uniform deadline (September 15), making compliance and planning more predictable for businesses.
Implements a tiered estimated tax payment schedule. based on when the tax election is made, meaning entities electing later in the year must pay larger upfront estimated payments—potentially impacting cash flow and financial planning for those businesses.
Aligns deadlines and payment structures for both state and city-level pass-through entity taxes. , reducing confusion and administrative burden for businesses operating in both jurisdictions.
Makes tax elections irrevocable after the new deadline. , emphasizing the importance of timely and deliberate decision-making by businesses regarding their tax status for the year.
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Who cares
Partnerships and S corporations
The bill would let them make their annual state tax election through September 15 for the current taxable year, with the election becoming irrevocable after that date.
Electing city partnerships and city resident S corporations
The bill would move their annual city tax election deadline to September 15 while retaining automatic invalidation if the corresponding state election is revoked or invalidated.
Accountants and tax preparers
The bill would require them to track election-dependent payment schedules, including payments of 25%, 50% or 75% of the required annual payment at the time of a later election, for taxable years beginning on or after January 1, 2026.
Headline styles
Change Tax Election Deadlines
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to ways and means
- Print number 1989a
- Amend and recommit to ways and means
- Referred to ways and means
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Set Tax Election Deadlines
In Senate Committee · Finance · Sponsor James Skoufis
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1989--A
2025-2026 Regular Sessions
IN ASSEMBLY
January 14, 2025
Introduced by M. of A. PAULIN -- read once and referred to the Committee on Ways and Means -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the tax law, in relation to the timing of annual tax elections
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subsection (c) of section 861 of the tax law, as amended by section 2 of subpart C of part J of chapter 59 of the laws of 2023, is amended to read as follows:
(c) The annual election must be made on or before [the due date of the first estimated payment under section eight hundred sixty-four of this article] September fifteenth and will take effect for the current taxable year. Only one election may be made during each calendar year. An election made under this section is irrevocable after [the due date] September fifteenth of the taxable year.
§ 2. Subsection (b) of section 864 of the tax law, as added by section 1 of part C of chapter 59 of the laws of 2021, paragraph 3 as amended by chapter 555 of the laws of 2022, is amended to read as follows:
(b) General. The estimated tax shall be paid as follows for an electing partnership and an electing S corporation:
(1) [The estimated tax shall be paid] For an election to be taxed pursuant to this article that is made on or before March fifteenth of the taxable year, the electing partnership or electing S corporation is required to make estimated tax payments in four equal installments on March fifteenth, June fifteenth, September fifteenth and December fifteenth in the calendar year prior to the year in which the due date of the return required by this article falls. The amount of each installment shall be twenty-five percent of the required annual payment.
(2) [The amount of any required installment shall be twenty-five percent of the required annual payment.] For an election to be taxed
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02020-02-5
pursuant to this article that is made after March fifteenth but before June fifteenth in the taxable year, the electing partnership or electing S corporation is required to make an estimated tax payment with its election that represents twenty-five percent of the required annual payment. The electing partnership or electing S corporation shall further make payments on June fifteenth, September fifteenth, and December fifteenth in the calendar year prior to the year in which the due date of the return required by this article falls, which shall each represent twenty-five percent of the required annual payment.
(3) For an election to be taxed pursuant to this article that is made on or after June fifteenth but before September fifteenth in the taxable year, the electing partnership or electing S corporation is required to make an estimated tax payment with its election that represents fifty percent of the required annual payment. The electing partnership or electing S corporation shall further make payments on September fifteenth and December fifteenth in the calendar year prior to the year in which the due date of the return required by this article falls, which shall each represent twenty-five percent of the required annual payment.
(4) For an election to be taxed pursuant to this article that is made on September fifteenth in the taxable year, the electing partnership or electing S corporation is required to make an estimated tax payment with its election that represents seventy-five percent of the required annual payment. The electing partnership or electing S corporation shall further make a payment on December fifteenth in the calendar year prior to the year in which the due date of the return required by this article falls, which shall represent twenty-five percent of the required annual payment.
[(3)] (5) Notwithstanding paragraph four of subsection (c) of section six hundred eighty-five of this chapter, the required annual payment is the lesser of: (A) ninety percent of the tax shown on the return for the taxable year; or (B) one hundred percent of the tax shown on the return of the electing partnership or electing S corporation for the preceding taxable year.
§ 3. Subsection (c) of section 868 of the tax law, as amended by section 7 of subpart C of part J of chapter 59 of the laws of 2023, is amended to read as follows:
(c) The annual election to be taxed pursuant to this article must be made on or before [the due date of the first estimated payment under section eight hundred sixty-four of this chapter] September fifteenth and will take effect for the current taxable year. Only one election to be taxed pursuant to this article may be made during each calendar year. An election made under this section is irrevocable after [such due date] September fifteenth of the taxable year. To the extent an election made under section eight hundred sixty-one of this chapter is revoked or otherwise invalidated an election made under this section is automatically invalidated.
§ 4. Subsection (b) of section 871 of the tax law, as added by section 1 of subpart B of part MM of chapter 59 of the laws of 2022, paragraph 3 as amended by chapter 555 of the laws of 2022, is amended to read as follows:
(b) General. Except as provided in subsection (c) of this section, the estimated tax shall be paid as follows for an electing city partnership and an electing city resident S corporation:
(1) [The estimated tax shall be paid] For an election to be taxed pursuant to this article that is made on or before March fifteenth in the taxable year, the electing city partnership or electing city S corporation is required to make estimated tax payments in four equal installments on March fifteenth, June fifteenth, September fifteenth and December fifteenth in the calendar year prior to the year in which the due date of the return required by this article falls. The amount of each installment shall be twenty-five percent of the required annual payment.
(2) [The amount of any required installment shall be twenty-five percent of the required annual payment.] For an election to be taxed pursuant to this article that is made after March fifteenth but before June fifteenth in the taxable year, the electing city partnership or electing city S corporation is required to make an estimated tax payment with its election that represents twenty-five percent of the required annual payment. The electing city partnership or electing city S corporation shall further make payments on June fifteenth, September fifteenth, and December fifteenth in the calendar year prior to the year in which the due date of the return required by this article falls, which shall each represent twenty-five percent of the required annual payment.
(3) For an election to be taxed pursuant to this article that is made after June fifteenth but before September fifteenth in the taxable year, the electing city partnership or electing city S corporation is required to make an estimated tax payment with its election that represents fifty percent of the required annual payment. The electing city partnership or electing city S corporation shall further make payments on September fifteenth and December fifteenth in the calendar year prior to the year in which the due date of the return required by this article falls, which shall each represent twenty-five percent of the required annual payment.
(4) For an election to be taxed pursuant to this article that is made on September fifteenth in the taxable year, the electing city partnership or electing city S corporation is required to make an estimated tax payment with its election that represents seventy-five percent of the required annual payment. The electing city partnership or electing city S corporation shall further make a payment on December fifteenth in the calendar year prior to the year in which the due date of the return required by this article falls, which shall represent twenty-five percent of the required annual payment.
[(3)] (5) Without regard to paragraph four of subsection (c) of section six hundred eighty-five of this chapter, the required annual payment is the lesser of: (A) ninety percent of the tax shown on the return for the taxable year; or (B) one hundred percent of the tax shown on the return of the electing city partnership or electing city resident S corporation for the preceding taxable year.
§ 5. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2026.
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