Extended Due Date Reminder – 2022 New York Pass-Through Entity Tax Deadlines on September 15

Client Alerts

BERDON STATE & LOCAL TAX TEAM

8.25.22 | Client Alert

As discussed in our previous alert, eligible pass-through entities (PTEs) that missed the original March 15 New York Pass-Through Entity Tax (PTET) election for the 2022 tax year have until September 15, 2022, to make the PTET election and pay 75% of the annual PTET estimated taxes.

An electing resident S corporation must pay 75% of estimated taxes based on both New York and non-New York source income by September 15 (for tax year 2022, an electing resident S corporation must certify that all shareholders are New York residents when it files the PTET return in 2023).

PTEs that anticipate having income in 2022 should evaluate the potential benefits to their partners, members, and shareholders of opting into the pass-through entity tax. The election is irrevocable for the tax year, and the PTE must pay estimates to avoid penalties for underpayment of estimated taxes. PTET overpayments, if any, will be refunded after the PTET return is filed.

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

This alert is for general information purposes only and is not intended, and should not be construed, as legal or tax advice.