Mandated Change to New York Corporate Estimated Tax Payments (Form CT-400)
Cheryl Prout, CPA & Partner

In the past, when a corporation made a New York State (NYS) estimated tax payment, a Form CT- 400 paper voucher was mailed along with the payment. NYS now has a new estimated tax payment E-File mandate, that affects both corporations and their tax preparers. Effective December 1, 2011, NYS requires corporations to make their estimated tax payments (Form CT-400) online if they meet certain requirements. If the taxpayer prepares their own corporate return and meets all three of the requirements, then online estimated tax payments are mandated. The three requirements are:

• The corporation prepares its own corporate tax returns,
• The corporation uses a computer to prepare, document, or calculate tax, and;
• The corporation has broadband Internet access.

If the corporation meets all of the above requirements, it has the following two options to make the online payments:

• Create an Online Services account at the Tax Department's Corporation Tax Web File service, and use the account to make online payments. This option is located at www.tax.ny.gov under Online Services.
• Use approved software that provides for online payment of estimated tax.

If the corporation uses a tax preparer to generate their estimated tax vouchers, the corporation's tax preparer is now required to submit the corporation's estimated tax payments electronically. The tax preparer can utilize either tax software that supports the CT-400, or the tax preparer's Online Service Account they have with NYS to make the payments. The payment would be made by using ACH debit or ACH credit under either option.

Note: Whether the corporation files its own NYS estimated tax payments or files through their tax preparer, the corporation will want to make sure there are no debit blocks on the bank account utilized to make the payment.

For further information and clarification on this matter, please contact Cheryl A. Prout, CPA and Partner at (716) 250-6600.

Amherst: 100 Corporate Parkway, Suite 200, Amherst, NY 14226, 716-250-6600
East Aurora: 100 Riley Street, East Aurora, NY 14052, 716-652-1042