29 - Mandatory electronic filing and payment.

§  29.  Mandatory  electronic  filing and payment. (a) For purposes of  this section, the following terms have the specified meanings:    (1)  "Authorized  tax  document"  means  a  tax  document  which   the  commissioner has authorized to be filed electronically.    (2) "Electronic" means computer technology.    (3)  "Original tax document" means a tax document that is filed during  the calendar year for which that tax document is required  or  permitted  to be filed.    (4)   "Tax"  means  any  tax  or  other  matter  administered  by  the  commissioner pursuant to this chapter or any  other  provision  of  law;  provided,  however,  that  the  term  "tax"  does  not include the taxes  imposed by, or  pursuant  to  the  authority  of,  articles  twenty-two,  thirty, thirty-A or thirty-B of this chapter.    (5)  "Tax  document"  means  a  return,  report  or any other document  relating to a tax or other matter administered by the commissioner.    (6)  "Tax  return  preparer"  means  any  person  who   prepares   for  compensation,  or  who employs or engages one or more persons to prepare  for compensation, any authorized tax  document.  For  purposes  of  this  section, the term "tax return preparer" also includes a payroll service.    (7)  "Tax  software"  means any computer software program intended for  tax return preparation purposes. For purposes of this section, the  term  "tax  software"  includes,  but  is  not  limited  to,  an off-the-shelf  software program loaded onto  a  tax  return  preparer's  or  taxpayer's  computer,  an  online  tax preparation application, or a tax preparation  application hosted by the department.    (b) If a tax return preparer prepared more than one  hundred  original  tax  documents  during  any  calendar year beginning on or after January  first, two thousand seven, and if, in any succeeding calendar year  that  tax  return preparer prepares one or more authorized tax documents using  tax software, then, for that  succeeding  calendar  year  and  for  each  subsequent  calendar  year  thereafter,  all  authorized  tax  documents  prepared by that tax return preparer must be  filed  electronically,  in  accordance with instructions prescribed by the commissioner.    (c) If a taxpayer does not utilize a tax return preparer to prepare an  authorized  tax  document during any calendar year beginning on or after  January first, two thousand eight, but instead  prepares  that  document  itself  using  tax  software,  then, for that calendar year and for each  subsequent  calendar  year  thereafter,  all  authorized  tax  documents  prepared   by   the   taxpayer   using   tax   software  must  be  filed  electronically,  in  accordance  with  instructions  prescribed  by  the  commissioner.    (d)  Any tax liability or other amount due shown on, or required to be  paid  with,  an  authorized  tax   document   required   to   be   filed  electronically  pursuant  to subdivision (b) or (c) of this section must  be paid by the taxpayer electronically, in accordance with  instructions  prescribed by the commissioner.    (e)  Failure  to  electronically file or electronically pay.  (1) If a  tax return  preparer  is  required  to  file  authorized  tax  documents  electronically  pursuant  to  subdivision  (b) of this section, and that  preparer fails to file one or more of  those  documents  electronically,  then  that  preparer  will  be subject to a penalty of fifty dollars for  each failure to electronically file an authorized tax  document,  unless  it  is  shown that the failure is due to reasonable cause and not due to  willful neglect.    (2) If a taxpayer is required to electronically pay any tax  liability  or other amount due shown on, or required to be paid with, an authorized  tax document required to be filed electronically pursuant to subdivision  (b)  or  (c)  of this section, and that taxpayer fails to electronicallypay one or more of those liabilities or other  amounts  due,  then  that  taxpayer  will be subject to a penalty of fifty dollars for each failure  to electronically pay.    (3)  The  penalties provided for by this subdivision must be paid upon  notice and demand, and will be assessed, collected and paid in the  same  manner  as the tax to which the electronic transaction relates. However,  if the electronic transaction relates to another matter administered  by  the  commissioner, then the penally will be assessed, collected and paid  in the same  manner  as  prescribed  by  article  twenty-seven  of  this  chapter.    (f)  The  provisions  of sections nine and ten of this chapter are not  affected by this section and will remain in full force and effect.    (g) The commissioner  is  authorized  to  promulgate  any  regulations  necessary to implement this section.