At RBT CPAs, we’re always ready to take on everything tax- and accounting-related for your organization, so you’re free to focus on driving your business success. Unfortunately, New York’s rules for its Pass-Through Entity Tax (PTET) require you – the business owner – to complete certain tasks. While we can’t automatically do them for you, we are here to guide you – and help where we can – so you have peace of mind that you’ve taken the right steps by designated deadlines to maximize the PTET for your business.
YOUR PTET TO DO LIST
If your business opted in for the 2022 PTET:
- Are you prepared to pay any balance owed for 2022 as part of your NYS tax filing by the March 15 deadline? RBT CPAs can help you file and pay in conjunction with your regular partnership or S corporation tax filing.
- Do you want an extension of time to file? A six-month extension to September 15th can be requested; you must still pay the estimated PTET by March 15.
- Do you want RBT CPAs’ assistance to file your return, file for an extension, or make a PTET payment? We are glad to help! You’ll need to complete Form TR 2000 giving us the authorization to log into your NYS tax account, file your return or extension request, and pay using the tax information you provide regarding how much is owed.
Consider whether your business should opt in for the 2023 PTET:
- This is a tough one. You will only have financial information for the first few months of the year, so you’ll have to speculate about much of the year’s profits.
- Take a look at your organization’s cash flow and the potential impact of quarterly payments. You’ll have to make quarterly payments starting in March (and then June, September, and December).
- Are you considering selling your business or property owned in your partnership or S corporation in 2023? These sales can create significant tax events; a PTET election would help to minimize that tax burden.
- If you’re unsure whether the benefit outweighs the administrative cost, RBT CPAs can partner with you to provide a PTET cost/benefit analysis for NY and other states.
- Before making your 2023 election, have a conversation with your RBT CPAs team member.
If your business decides to opt in for the 2023 PTET:
- Have you completed your election to opt in? You cannot wait until you file your taxes for 2023. Opting in is an additional step you must complete before or on March 15. You, the business owner, must make this election online via your NYS tax account – you cannot delegate this activity to a third party like a tax preparer. Please see here for our step-by-step guide to making your 2023 NY PTET election.
- If your business is making the PTET election for 2023, have you engaged RBT CPAs to provide estimated quarterly tax payments (due in March, June, September, and December)?
- If you completed your 2023 PTET election, has your business made its first quarterly estimated tax payment by March 15, 2023?
- RBT CPAs can assist with certain aspects of this if you provide us with a completed Form TR 2000 (see “If your business opted in for the 2022 PTET” above for details).
If you have any questions or need additional information or assistance, please remember RBT CPAs is here to help. Let us know what you need so you can be 100% confident you’re making the right decisions and taking the right actions for your firm in relation to the NYS PTET.