July 28, 2022

New York Amends Tax Law to Follow IRS Tax Deadline Extensions

New York Amends Tax Law to Follow IRS Tax Deadline Extensions State & Local Tax

On July 25, 2022, New York Governor Kathy Hochul signed New York State Bill S8398B/A9461 (“the measure”) into law. Originally introduced on February 22, 2022 by State Senator John Liu, this measure effectively requires state deadline extensions to match federal deadline extensions.

Allowing New York State to match any deadline postponement(s) issued by the Internal Revenue Service (“IRS”) gives residents additional time to file and also reduces taxpayer confusion, which in years past may have caused compliance issues with the timely submission of returns.

Even though historically the state of New York coordinated extension deadlines with the federal government (e.g., after the destruction caused by Hurricane Ida, the IRS extended the deadline to file tax returns due October 15 to January 3, and New York granted the same state tax extension), this measure will not only ensure continued coordination during disastrous moments, but will also allow for coordination during events that indirectly impact New York State taxpayers (e.g., when the IRS shut down its e-filing system in November to perform its yearly systems update and extended the filing deadline to February 15, New York State taxpayers were still required by the state to submit a paper). Consequently, the measure should positively affect New York State taxpayer filing compliance.

This new measure applies to individuals, business entities, and sole proprietors and should afford New York State taxpayers some level of assurance when determining how IRS deadline extension guidance applies to New York State tax filing decisions.

Please contact your dedicated Marcum State and Local Tax Professional to address any questions regarding this notice or any other tax matter.