20 CRR-NY 2396.3NY-CRR
20 CRR-NY 2396.3
20 CRR-NY 2396.3
2396.3 Participatingtaxpayers.
(a) General rule.
Subject to the provisions of subdivisions (b)and (c) of this section, relating to exemptions and special entities,respectively, every taxpayer which is required to deduct and withhold$35,000 or more of tax for either of the semi-annual periods endingJune 30th or December 31st pursuant to part V of article 22 of theTax Law, or pursuant to an equivalent provision enacted under theauthority of article 30, 30-A or 30-B of the Tax Law shall be requiredto participate in the program.
(1) $35,000 or more anaggregate amount. For purposes of determining whether the $35,000or more threshold is met, New York State, City of New York and Cityof Yonkers withholding taxes shall be aggregated.
(2) $35,000 or more thresholdapplies to each withholding taxpayer. Every taxpayer which is identifiedby either its own separate Federal employer identification number,or its own separate New York State employer identification number,in accordance with section 6109 of the Internal Revenue Code and regulationspromulgated thereunder, or with section 174.5 of this Title, respectively,shall be treated as a separate withholding taxpayer for purposes ofdetermining whether the $35,000 or more threshold is met.
(b) Exemption.
(1) General rule.
A taxpayer described in subdivision (a) of thissection shall be exempt from participation in the program if the aggregatetax withheld by the taxpayer, pursuant to the most recent annual reconciliationof withholding required to be filed is less than $100,000.
(2) The exemption thresholdapplies to each separate withholding taxpayer. Every taxpayer whichis identified by either its own separate Federal employer identificationor its own separateNew York State employer identification number, in accordance withsection 6109 of the Internal Revenue Code and regulations promulgatedthereunder, or with section 174.5 of this Title, respectively, shallbe treated as a separate withholding taxpayer for purposes of determiningwhether the exemption threshold specified in paragraph (1) of thissubdivision is met.
(c) Special entities.
(1) Health care providers.
Health care providers, as defined in section 9(a)(4)of the Tax Law, are exempt from the requirements to participate inthe program.
(2) Educational organizations.
Educational organizations, as defined by section9(a)(2) of the Tax Law, are required to participate in the programif the eligibility requirements in subdivisions (a) and (b) of thissection are met. (See section 2396.9 for special rules governing theprogram participation of educational organizations.)
(d) Voluntary participation.
(1) Application.
Any withholding tax taxpayer not required to participatein the program may, at any time, submit a request to the departmentfor permission to voluntarily participate in the program.
(2) Standard.
Any taxpayer that applies to voluntarily participateshall be granted permission to participate unless the department determinesthat the administrative costs associated with accepting new enrolleesinto the program outweigh the revenue and tax administration benefitsassociated with payment by EFT or certified check. The administrativecosts considered in the determination include, but are not limitedto, increasing systems capacities, adding depository bank resourcesand adding program specialists within the department.
(3) Notice.
The department shall notify the taxpayer of the decisionwithin 30 calendar days of the receipt of the request to voluntarilyparticipate. If the department grants permission to the taxpayer,it shall also make available to the taxpayer all the instructionsand information necessary to ensure successful participation in theprogram.
(4) Conditions ofparticipation.
(i) General. The provisionsof section 2396.7 of this Part shall apply to all withholding taxtaxpayers voluntarily participating in the program, other than thosetaxpayers specified in subparagraph (ii) of this paragraph, and withthe limitation described in subparagraph (iii) of this paragraph.
(ii) Health care providersand educational organizations. The provisions of section 2396.9 ofthis Part shall apply to health care providers and educational organizationsvoluntarily participating in the program, with the limitation describedin subparagraph (iii) of this paragraph.
(iii) Payment optionsavailable. The department may limit the selection of payment optionsavailable to voluntary participants in the program. If the departmentlimits the selection of options, it will inform taxpayers during theenrollment process about the payment options available. (See sections2396.7 and 2396.9 of this Part for more information about paymentoptions.)
(5) Duration of participation.
(i) General. A taxpayeraccepted to voluntarily participate in the program shall be requiredto participate in the program through at least the succeeding June30th, unless otherwise notified by the department.
(ii) Ceasing voluntaryparticipation.
(a) Automatictaxpayer election. No later than June 20th, if in writing, or June30th, if online, of each year, a taxpayer voluntarily participatingin the program may notify the department that it no longer electsto participate in the program for the succeeding period beginningafter June 30th. The department shall advise the taxpayer of whetherthe notification was timely made. If such notification is not timelymade, such taxpayer must continue to participate in the program forthe upcoming program year.
(b) Taxpayer hardship. If a taxpayer wishes to ceaseparticipation before the period ending June 30th, the taxpayer mayapply to the department to do so at any time. The department shalladvise the taxpayer of the decision within 30 calendar days of thereceipt of the request. The request shall not be granted unless thetaxpayer demonstrates that continuation of its voluntary participationwill result in hardship to the taxpayer. If the request is granted,the department shall advise the taxpayer of the date for final filingand payment by an EFT method.
(c) Department's determination. The department may,at any time after enrollment and on 30 business days' notice,advise the taxpayer that it will no longer be permitted to participatein the program on a voluntary basis.
20 CRR-NY 2396.3
Current through September 30, 2022
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IMPORTANT NOTE REGARDING CONTENT CURRENCY: JULY 31, 2023, is the date of the most recently produced official NYCRR supplement covering this rule section. For later updates to this section, if any, please: consult editions of the NYS Register published after this date; or contact the NYS Department of State Division of Admisnistrative Rules at [email protected]. See Help for additional information on the currency of this unofficial version of the NYS Rules.