Helen Pelersi, DirectorOffice of Processing & Taxpayer Services

May 26, 2011

5/26/2011 Slide 1

Returns Filing with efile Rates Calendar Year 2011

Programs

Actual Returns Filing YTDJanuary – April 30, 2011

Paper Volume e-File Volume Total Return Counts e-File % YTD e-File % Change

From 2010

Corp Tax Returns 191,475 292,063 483,538 60% 68%

Corp Tax Extension Requests 81,099 180,887 261,986 69% 100%

PIT Primary 2,322,817 7,330,956 9,653,773 76% 18%

PIT Partnership Returns 108,578 223,205 331,783 67% 79%

PIT Extension Requests 200,335 492,958 693,293 71% 76%

Sales Tax 383,875 270,492 654,367 41% 56%

5/26/2011 Slide 2

Exceptions and Protest Volume January- April 2011

  Exceptions Chg from 2010 Protest Chg from 2010

Personal Income Tax 80,399  <14%> 898 +.03%

Corporation Tax  46,826 <49> 26,747 +53%

Sales Tax 42,845 <35%> 39,825 <13%>

5/26/2011 Slide 3

Exception Rate Paper vs E-file

January-April 30, 2011

PAPER E-FILE

Personal Income Tax 1.60% 0.67%

Corporation Tax 14.97% 4.80%

Sales Tax 15.10% 2.01%

5/26/2011 Slide 4

“Opt-out” removed

Legislation effective 1/1/2011

Failing to efile based on the client’s request no longer accepted as “reasonable cause”

No Separate Fee for NYS efiling

Legislation effective 1/1/2011

Software developers/tax practitioners are prohibited from charging a separate fee for filing a return electronically.

Penalties • $500 per return-first occurrence• $1,000 per return-each subsequent occurrence

5/26/2011 Slide 5

Billing non-compliant tax preparer’s $50 per Corporation Tax return for failure to comply with mandate

Sept 2010 notified over 400 practitioners via “soft” letter and requested copies of “Opt-out” forms

December 2010 began billing non-responsive practitioners

January-March 2011: Continued to bill tax preparers $50 per return for the paper returns that were eligible for efiling

5/26/2011 Slide 6

Corporation Tax Payment Voucher as alternative payment method for efiled Corporation Tax Returns

40% of practitioners surveyed indicated electronically paying was the major obstacle to efiling

January-March 31st, 2011 Payment Distribution

• ACH Debit

• ACH Credit

• CT Voucher

Transactions

Dollar Amount

ACH Credits439 $305,599,459

ACH Debits 268,126 $545,453,191

CT-200-V61,438 $154,491,870

5/26/2011 Slide 7

Mandating Quarterly Sales Tax Vendors to Web-File ( June 2011 )

DTF hosts Website for Sales Tax Filing

ACH Debit payment with option to schedule payments

PIN Letters

5/26/2011 Slide 8

Change in threshold for Preparer Mandate

Effective 2012: 5 or more original software prepared documents in 2011 for mandated taxes

Effective 2007: 100 or more original software prepared documents in 2006

Penalty: $50 per return

Potential Individual Taxpayer Mandate (January 2012-December 2012)

$25 penalty for each individual taxpayer who files a paper return using software for an eligible efile return

IF

NYS fails to achieve 85% PIT E-file penetration rate by August 31,

2011

5/26/2011 Slide 9

Debit Cards for Personal Income Tax Refunds (January 2012)

Bank of America awarded the bid

Currently in contract negotiations

Choices for taxpayer

• Direct Deposit

• Debit Card

Eliminate IT-150 (short-form)

5/26/2011 Slide 10

Use of Email

Invitation to taxpayer to communicate with Department via email

Filing reminders, non statutory notices

Recent legislative allowing email for statutory notices (Bills)

• Starting with Sales Tax Vendors

5/26/2011 Slide 11

Account View

Revamped Website to have a taxpayer “Account View”

• Message Center

• Bills

5/26/2011 Slide 12

• Filings

5/26/2011 Slide 13

• Personal Information

Respond to Department Notice (RTDN)

Website to answer questions, attach PDF’s and create narrative to protest a bill, respond to notice asking for additional information, etc

• Automatically routed to correct work list for resolution

• Working on System Intelligence to systematically resolve intervention and to email back resolution to taxpayer

5/26/2011 Slide 14

F-SET Adoption for Withholding and Wage Reporting

Analysis phase

Changing PIT Providers 2013

Currently negotiating with 3rd party processor

In-house Processing for Corporation Tax 2013

Coversheet for paper returns starting January 2012

Due date for IT-204 LLC changed to 60 days from the end of the year to 30 days

5/26/2011 Slide 15

5/26/2011 Slide 16

Helen Pelersi, DirectorNYS Department of Taxation & Finance Office of Processing & Taxpayer Services

Building 8, Room 557W.A. Harriman Campus

Albany NY 12227

Email: Helen_Pelersi@tax.ny.gov

Phone: (518) 591-1944