The two separate e-file mandates that applied to personal income tax and business taxes were combined into one mandate. The single e-file mandate applies to tax preparers who prepare more than five tax documents. (A 100 tax document threshold previously applied to tax preparers.)

When determining the five document threshold, you must count all New York State personal income, partnership, fiduciary, sales and corporation tax documents that you prepared in calendar year 2011.

Conditions you must meet

You must e-file all mandated tax documents if:

• you're a tax return preparer and were subject to the mandate in a previous period, or
• you meet both of the following conditions:
  -  you prepared more than five combined original New York State personal income, partnership, fiduciary, sales and/or corporation tax documents in calendar year 2011, including tax documents for prior periods; and
  -  you use tax software to prepare one or more of these tax documents in 2012.

To determine if you meet the five tax document threshold:

• Count New York tax documents at the entity level.  Include all tax documents prepared by you and all members or employees of your firm.  If your business has multiple locations, use the combined total for all locations.
• Count all New York personal income, partnership fiduciary, sales and corporation tax documents that you prepared in calendar year 2011.  Include paper and electronically filed tax documents.  You must include extensions, amended returns, returns for prior years, estimated tax payments and any other New York tax documents, even if they aren't subject to the mandate or can't be e-filed.

Defining a tax preparer

You are a tax return preparer if:

•  you prepare any New York State return or claim for refund for compensation; or
• you receive compensation for returns or claims for refund prepared by people that you employ or engage.

The mandate applies to tax return preparers located within and outside New York State.

Other information

• Clients can't opt-out of e-file.
• If you have reasonable cause to not e-file, you must maintain adequate documentation. You must provide that documentation to us if you or your client receives a penalty bill for failing to e-file.
• You're responsible for determining whether or not you're subject to the mandate.
• Once you're subject to the mandate, it continues to apply to you in all following years, even if you no longer meet the threshold.
• If you can't electronically file the return because it's not supported by your approved e-file software or it can't be filed on our Web site, then you aren't required to e-file it.
• You can't charge a separate fee for e-file.

See the summary of filing options and payment methods for more information.

For More Information

Mandate Changes for 2012
What tax documents must be electronically filed
E-file mandate penalties
More tax preparer e-file mandate information