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Deadline Approaching – October 15 Deadline to Opt Into the Pass-Through Entity Tax (PTET)

Sarah S. Kim

10.7.21 | Client Alert

October 15 Deadline

If you wish to participate in the optional PTET for 2021, the deadline to opt in is October 15, 2021.

Reminder: Tax professionals cannot make the election on behalf of their clients.

To opt in:

  1. Log in to your S corporation’s or partnership’s Business Online Services account. (If the business doesn’t have an account, the New York State Department of Taxation and Finance recommends creating one by October 8 to avoid missing the election deadline.)
  2. Select the ≡ Services menu in the upper left corner of your Account Summary homepage.
  3. Choose PTET web file from the Corporation tax or Partnership tax expanded menu, then select Pass-through entity tax (PTET) annual election.

PTET Defined

For tax years beginning on or after January 1, 2021, eligible pass-through entities may elect to pay a New York Pass-Through Entity Tax (PTET). The optional PTET is a state income tax that is imposed on the pass-through entity (i.e., an entity that is classified as a partnership or S corporation for federal and New York State income tax purposes). The direct partners, members or shareholders of an electing pass-through entity receive a refundable credit against their New York personal income tax based on their respective share of the PTET.

For more information on this optional tax, see Pass-through entity tax (PTET).

Questions: Contact Wayne K. Berkowitz at 212.331.7465 | wberkowitz@berdon.com or reach out to your Berdon advisor.