By Phil London, Partner Emeritus

The NYSSCPA is constantly monitoring developments affecting taxpayers and the CPA profession on a continuous basis. When the NYS Assembly first proposed a Pass-Through Entity Tax (PTET), they reached out to the Society to assist in the review of the language and how to tailor the law to be most effective for taxpayers without hurting the state’s fiscal health. When the IRS approved “SALT workarounds” in Notice 2020-75 it became more realistic to pass a PTET.

Through an extensive collaborative effort with the Assembly, other business organizations and the NYSSCPA led by Phil, we were able to tailor the law to maximize benefits for more taxpayers. We were able to expand the tax base and to accelerate the effective date to 2021 tax years.

As a result, any partnership or S corporation with NY income or resident owners should contact us ASAP to properly plan for the PTET. An election to take advantage of the benefits must be made annually. That election for this tax year is due by October 15, 2021.