Level 2

Question

New York's new Pass-Through Entity Tax (P.T.E.T.)

Forum|Forum|4 years ago
October 7, 2021
3 replies
52 views

Hello.

Has anyone seen anything about whether ProSeries will accommodate New York's new, optional workaround the federal "SALT" (state and local tax) itemized limitation of $10,000, the Pass-Through Entity Tax?

While all filings and payments will be done electronically, online at their portal only, no paper (like F.B.A.R. Form 114), hypothetically ProSeries could accommodate the e-filing of it (like F.B.A.R. Form 114). The Research feature turns up nothing relevant.

Thank you!

ProSeries Professional

This topic has been closed for replies.

Taxes-by-Rocky

Level 7

From NYS DTF's website:

"Only an authorized person may make this election on behalf of an eligible partnership or eligible S corporation. Tax professionals may not make this election on behalf of their clients.

Authorized person: An individual who is eligible to make the election into the PTET on behalf of an eligible partnership or eligible S corporation. For partnerships, authorized person includes any member, partner, owner, or other individual with authority to bind the entity and sign returns under Tax Law § 653. For New York S corporations, authorized person includes any officer, manager, or shareholder of the New York S corporation who is authorized under the law of the state where the corporation is incorporated or under the S corporation’s organizational documents to make the election, and who represents to having that authorization under penalty of perjury.

An authorized person can opt in to the PTET on behalf of an eligible entity through the entity's Business Online Services account. If the entity does not have a Business Online Services account, the authorized person will need to create one."

Suspect the state and the tax software companies could not do the programing and authorizations fast enough. Agree, makes it a lot more complicated.

F

Fifties01Author

Level 2

Agreed with respect to the election, thank you. I was wondering about the eventual electronic filing of the tax return and extension. It is my understanding that a qualified preparer properly authorized can do that at the portal. Why not through software? If we can e-file F.B.A.R. 114's with FinCEN, normally filable online at a FinCEN portal only, through ProSeries, why not New York's P.T.E.T.? I guess we'll see.

C

caj111

Level 4

So, I'd like to revive this thread now that filing season is about to begin. My client elected the pass-through entity tax on his subchapter S corporation return, and made the state tax payment for the tax. How does he get credit for this payment on his individual New York return? What credit against the New York personal tax do you claim?

A

admin5

Level 2

Look for form IT-653 on the Individual New York Tax Return.

C

caj111

Level 4

Thank you very much. Do you also happen to know if there will be a New York Pass Through Entity Tax return that can be prepared through Pro Series, or can it only be prepared on New York's website?

L

LarryKalkstein

Level 3

Intuit and NY State are disgraceful in handling the PTET matter. I had a 30 minute call with Haley (from Intuit) and a NY Tax Agent Rachel,.. Neither had any idea where to enter the PTET that was paid at the entity level. This is a week ago. Haley promised to get back to me asap. Of course, she has not responded-DISGUSTING SERVICE. I can expect that from the NY Tax Bureaucrats but from Intuit-who I pay lots of money it is UNACCEPTABLE SERVICE.

So, I have all these NY returns that cannot be processed. Hopefully the NY bureaucrats give auto extensions without the need for us to file extensions. Amazing how the state puts mandates on when to file but they drop the ball in providing guidance for this matter.

dascpa

Level 11

Before you **bleep** too much at Intuit here's my PTE story from Maryland. We were the first state to get this approved by the IRS. A new form was created end of February last year. Early March we were told by the Comptroller's office to stop filing all business returns as the form was not correct. In June the form was re-released. In early July we were told to stop filing as the calculations on the form were wrong. We got final ability to file in early August. The theory behind the PTE is great. The calculation and implementation is much harder.

My suggestion - give everyone a break. 20+ states have created this new PTE and they're all just figuring it out. ProSeries will always be weeks to months behind that. If needed, file an extension and when the dust settles, complete the PTE.

C

caj111

Level 4

You know, this is a new situation and the New York legislation was enacted late last year, so I understand that Intuit would not be able to create software to do the PTET return in time but what's disgraceful is that the people who answer the phones at Intuit haven't been any kind of information about this whatsoever. One of the people I spoke to asked her supervisor and the supervisor didn't know either. It was on here that I found out that the PTET can only be entered at New York's website. Would it have been very difficult to inform their call center employees about this? I don't know what kind of training they get, or what kind of reference sheets they have to look at while on the phone but it is clearly inadequate.

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