STATE OF NEW YORK ________________________________________________________________________ 1989 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 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 Assem- bly, do enact as follows: 1 Section 1. Subsection (c) of section 861 of the tax law, as amended by 2 section 2 of subpart C of part J of chapter 59 of the laws of 2023, is 3 amended to read as follows: 4 (c) [The] For taxable years beginning before January first, two thou- 5 sand twenty-five, the annual election must be made on or before the due 6 date of the first estimated payment under section eight hundred sixty- 7 four of this article and will take effect for the current taxable year, 8 and for taxable years beginning on or after January first, two thousand 9 twenty-five, such election must be made by September fifteenth of the 10 taxable year for which such election is being made. Only one election 11 may be made during each calendar year. An election made under this 12 section is irrevocable after the due date. 13 § 2. Subsection (b) of section 864 of the tax law, as added by section 14 1 of part C of chapter 59 of the laws of 2021, paragraph 3 as amended by 15 chapter 555 of the laws of 2022, is amended to read as follows: 16 (b) General. The estimated tax shall be paid as follows for an elect- 17 ing partnership and an electing S corporation: 18 (1) The estimated tax shall be paid in four [equal] installments on 19 March fifteenth, June fifteenth, September fifteenth and December 20 fifteenth in the calendar year prior to the year in which the due date 21 of the return required by this article falls. 22 (2) Amount of required installment. (A) The amount of any required 23 installment shall be twenty-five percent of the required annual payment. 24 (B) In the case of any required installment, if the electing partner- 25 ship or the electing S corporation establishes that the annualized EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD02020-01-5A. 1989 2 1 income installment determined under subparagraph (B) of paragraph four 2 of subsection (c) of section six hundred eighty-five of this chapter is 3 less than the amount determined under subparagraph (A) of this para- 4 graph, the annualized income installment shall be the required install- 5 ment. Any reduction in a required installment resulting from the appli- 6 cation of this subparagraph shall be recaptured by increasing the amount 7 of the next required installment determined under this paragraph by the 8 amount of such reduction, and by increasing successive required install- 9 ments as necessary to effect full recapture. 10 (3) [Notwithstanding paragraph four of subsection (c) of section six11hundred eighty-five of this chapter, the] The required annual payment is 12 the lesser of: (A) ninety percent of the tax shown on the return for the 13 taxable year; or (B) one hundred percent of the tax shown on the return 14 of the electing partnership or electing S corporation for the preceding 15 taxable year. 16 (4) Without regard to paragraphs one and two of this subsection, if an 17 election is made on or after March fifteenth and before June fifteenth 18 of the taxable year for which such election is made, the electing part- 19 nership or electing S corporation is required to make an estimated tax 20 payment with such election in an amount equal to the first required 21 installment and if an election is made on or after June fifteenth and 22 before September fifteenth of the taxable year for which such election 23 is made, the electing partnership or electing S corporation is required 24 to make an estimated tax payment with such election in an amount equal 25 to the sum of the first and second required installments. 26 § 3. Subsection (c) of section 868 of the tax law, as amended by 27 section 7 of subpart C of part J of chapter 59 of the laws of 2023, is 28 amended to read as follows: 29 (c) [The annual election to be taxed pursuant to this article must be30made on or before the due date of the first estimated payment under31section eight hundred sixty-four of this chapter and will take effect32for the current taxable year.] Only one election to be taxed pursuant to 33 this article may be made during each calendar year. An election made 34 under this section is irrevocable after such due date. To the extent an 35 election made under section eight hundred sixty-one of this chapter is 36 revoked or otherwise invalidated an election made under this section is 37 automatically invalidated. 38 § 4. Subsection (b) of section 871 of the tax law, as added by section 39 1 of subpart B of part MM of chapter 59 of the laws of 2022, paragraph 3 40 as amended by chapter 555 of the laws of 2022, is amended to read as 41 follows: 42 (b) General. Except as provided in subsection (c) of this section, the 43 estimated tax shall be paid as follows for an electing city partnership 44 and an electing city resident S corporation: 45 (1) The estimated tax shall be paid in four [equal] installments on 46 March fifteenth, June fifteenth, September fifteenth and December 47 fifteenth in the calendar year prior to the year in which the due date 48 of the return required by this article falls. 49 (2) Amount of required installment. (A) The amount of any required 50 installment shall be twenty-five percent of the required annual payment. 51 (B) In the case of any required installment, if the electing city 52 partnership or the electing city resident S corporation establishes that 53 the annualized income installment determined under subparagraph (B) of 54 paragraph four of subsection (c) of section six hundred eighty-five of 55 this chapter is less than the amount determined under subparagraph (A) 56 of this paragraph, the annualized income installment shall be theA. 1989 3 1 required installment. Any reduction in a required installment resulting 2 from the application of this subparagraph shall be recaptured by 3 increasing the amount of the next required installment determined under 4 this paragraph by the amount of such reduction, and by increasing 5 successive required installments as necessary to effect full recapture. 6 (3) [Without regard to paragraph four of subsection (c) of section six7hundred eighty-five of this chapter, the] The required annual payment is 8 the lesser of: (A) ninety percent of the tax shown on the return for the 9 taxable year; or (B) one hundred percent of the tax shown on the return 10 of the electing city partnership or electing city resident S corporation 11 for the preceding taxable year. 12 (4) Without regard to paragraphs one and two of this subsection, if an 13 election is made on or after March fifteenth and before June fifteenth 14 of the taxable year for which such election is made, the electing part- 15 nership or electing S corporation is required to make an estimated tax 16 payment with such election in an amount equal to the first required 17 installment, and if an election is made on or after June fifteenth and 18 before September fifteenth of the taxable year for which such election 19 is made, the electing partnership or electing S corporation is required 20 to make an estimated tax payment with such election in an amount equal 21 to the sum of the first and second required installments. 22 § 5. This act shall take effect immediately and shall apply to taxable 23 years beginning on or after January 1, 2025.
Policy Tracker
Relates to the timing of annual tax elections and the amount of the required installments.
NY · Legislation · 2025 · A01989
Legislation
Introduced
Record updated Jan 7, 2026
Summary
Relates to the timing of annual tax elections and the amount of the required installments.
Timeline
2026-01-07
A
referred to ways and means
2025-03-13
A
amend and recommit to ways and means
2025-03-13
A
print number 1989a
2025-01-14
A
referred to ways and means
Bill Text
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