The New York IT-2659 form is a crucial document for partnerships and New York S corporations, specifically designed to address estimated tax penalties. This form is used to report underpayment or nonpayment of estimated taxes that must be paid on behalf of partners and shareholders, including both corporations and nonresident individuals. By accurately completing this form, entities can ensure compliance with state tax regulations and avoid potential penalties.
The New York IT-2659 form plays a crucial role for partnerships and S corporations in managing their estimated tax obligations. This form specifically addresses the penalties associated with underpayment or nonpayment of estimated taxes that must be paid on behalf of partners and shareholders, particularly those who are corporations or nonresident individuals. It requires filers to provide essential information such as the legal name, trade name, address, and employer identification number of the business entity. The form also distinguishes between partnerships and S corporations, guiding users through the necessary schedules to compute any penalties incurred. Key components include the calculation of estimated tax based on distributive shares of income and deductions, as well as the penalties for failing to meet payment deadlines. Timely filing is critical, with a deadline set for April 15 following the tax year, or the due date of the tax return, whichever comes later. Understanding the IT-2659 form is vital for compliance and avoiding unnecessary penalties, ensuring that businesses can navigate their tax responsibilities effectively.
Misconception 1: The IT-2659 form is only for large corporations.
This form is actually designed for both partnerships and New York S corporations, regardless of their size. Any entity that has partners or shareholders who are nonresident individuals or corporations must complete this form if they are required to pay estimated taxes on behalf of those individuals or corporations.
Misconception 2: The IT-2659 form is optional for partnerships and S corporations.
In reality, filing the IT-2659 is mandatory if the partnership or S corporation has underpaid or failed to pay the required estimated taxes. This form helps calculate any penalties for underpayment, ensuring compliance with New York tax laws.
Misconception 3: The penalties calculated on the IT-2659 form are fixed and cannot be disputed.
While the form does calculate penalties based on specific criteria, entities can appeal these penalties if they believe there are valid reasons for their underpayment. It's essential to understand the basis for the penalties and explore options for resolution.
Misconception 4: The IT-2659 form can be filed with other tax forms.
This form must be filed separately. It should not be attached to any other tax forms. This requirement is crucial for ensuring that the New York State Department of Taxation and Finance processes the form correctly and efficiently.
When filling out the New York IT-2659 form, it’s important to be thorough and accurate. Here are five tips to help you navigate the process effectively:
Following these guidelines will help ensure that your form is processed smoothly and efficiently. Good luck!
Form IT-201: This is the New York State Resident Income Tax Return. Like IT-2659, it requires detailed income reporting but is for individual taxpayers rather than partnerships or S corporations.
Form IT-203: This form is the Nonresident and Part-Year Resident Income Tax Return. Similar to IT-2659, it addresses tax obligations for nonresidents, focusing on income earned in New York.
Form IT-370: This is the Application for Automatic Extension of Time to File for Individuals. Both forms deal with tax obligations and deadlines, but IT-370 provides an extension rather than calculating penalties.
Form IT-2105: This is the Estimated Income Tax Payment Voucher for Individuals. Like IT-2659, it involves estimated tax payments, but it is specifically for individual taxpayers rather than entities.
Form IT-2106: This is the Estimated Tax Payment Voucher for Corporations. Similar to IT-2659, it focuses on estimated tax payments, but it applies to corporate entities rather than partnerships or S corporations.
Form CT-3: This is the General Business Corporation Franchise Tax Return. Both forms deal with tax obligations for businesses, but CT-3 is specific to corporations rather than partnerships.
Form CT-4: This is the Application for a New York State Corporation Tax Extension. Similar to IT-2659, it addresses tax deadlines but is for corporations seeking an extension.
Form NYS-1: This is the New York State Withholding Tax Remittance Form. While IT-2659 addresses estimated tax penalties, NYS-1 focuses on withholding tax obligations for employers.
Form IT-2658: This form is for the Estimated Tax Penalties for Individuals. Like IT-2659, it calculates penalties for underpayment but is specifically for individual taxpayers.
New York State Department of Taxation and Finance
IT-2659
Estimated Tax Penalties for
Partnerships and New York S Corporations
(For underpayment or nonpayment of estimated tax required to be paid on behalf of
partners and shareholders who are corporations or nonresident individuals)
For calendar year 2012 or iscal year beginning
and ending
(See instructions, Form IT‑2659‑I, for assistance)
Print or type
Legal name
Trade name of business if different from legal name above
Address (number and street or rural route)
City, village, or post ofice
State
ZIP code
Employer identiication number
Type of entity (mark an X in the applicable box):
Partnership
S corporation
Complete Schedules A through D on pages 2, 3, and 4, as applicable, to compute your penalty.
Staple check or money order here.
Pay amount shown on page 4, line 52. Include only the line 52
amount in your check or money order, and make payable to: COMMISSIONER OF TAXATION AND FINANCE
Payment enclosed
.00
File Form IT‑2659 by the later of April 15, 2013, or the due date of the partnership
or S corporation tax return for the year determined with regard to any extension of time to ile).
Do not attach or ile Form IT‑2659 with any other form.
Paid preparer must complete (see instructions)
Date:
Preparer’s signature
Preparer’s NYTPRIN
Firm’s name (or yours, if self-employed)
Preparer’s PTIN or SSN
Address
Mark an X if
self‑employed
E‑mail:
Mail this form and payment to: NYS TAX DEPARTMENT - IT-2659 PO BOX 397
ALBANY NY 12201-0397
Sign your return here
Signature of general partner or member, elected oficer, or authorized person
Date
Daytime phone number
( )
069001120094
Page 2 of 4 IT-2659 (2012)
Schedule A – Computation of estimated tax underpayment (if any). All ilers must complete this part. Only include partners and shareholders who are subject to estimated tax paid on their behalf by the partnership or New York S corporation (see instructions).
Current year
1Total of all nonresident individual partners’ or shareholders’ distributive
or pro rata shares of 2012 income earned from New York sources....
1
2
Total of all nonresident individual partners’ or shareholders’ shares of
2012 partnership deductions allocated to New York (see instructions)
3
Subtract line 2 from line 1
4
Individual tax rate (8.82%)
.0882
5
Multiply line 3 by line 4
6
Total of all nonresident individual partners’ or shareholders’ distributive
or pro rata shares of 2012 partnership or S corporation credits
7
2012 estimated tax required to be paid on behalf of nonresident individuals (subtract line 6 from line 5)
............. 7
8
Total of all corporate partners’ distributive shares of 2012 income earned from NY sources
9
Corporation tax rate (7.1%)
.071
10
Multiply line 8 by line 9
11
Total of all corporate partners’ distributive shares of 2012 partnership credits
12
2012 estimated tax required to be paid on behalf of corporations (subtract line 11 from line 10)
13
Total estimated tax required to be paid for 2012 (add lines 7 and 12)
14
90% of the estimated tax required to be paid for 2012 (multiply line 13 by 90% (.90))
Prior year
15Total of all nonresident individual partners’ or shareholders’ distributive
or pro rata shares of 2011 income earned from New York sources ....
15
16
2011 partnership deductions allocated to New York (see instructions)..
17
Subtract line 16 from line 15
18
Individual tax rate (8.97%)
.0897
19
Multiply line 17 by line 18
20
or pro rata shares of 2011 partnership or S corporation credits
21
2011 estimated tax computed for individuals (subtract line 20 from line 19)
..........................................................
22
Total of all corporate partners’ distributive shares of 2011 income earned from NY sources
23
24
Multiply line 22 by line 23
25
Total of all corporate partners’ distributive shares of 2011 partnership credits
26
2011 estimated tax computed for corporations (subtract line 25 from line 24)
27
Total estimated tax computed for 2011 (add lines 21 and 26)
If the sum of lines 17 and 22 is more than $150,000, and the entity is not primarily
engaged in farming or ishing, complete line 28 and continue with Schedule B. If the
sum of lines 17 and 22 is $150,000 or less, skip line 28 and continue with Schedule B.
28
Multiply line 27 by 110% (1.10)
Schedule B – Short method for computing the penalty. Complete lines 29 through 34 if you paid four equal estimated tax installments (on the due dates), or if you made no payments of estimated tax. Otherwise, you must complete Schedule C.
29If you were not required to make an entry on line 28, enter the lesser of lines 14 or 27.
If you were required to make an entry on line 28, enter the lesser of lines 14 or 28
29
30
Enter the total amount of estimated tax payments made for 2012
31
Total underpayment for the year (subtract line 30 from line 29; if zero or less you do not owe the penalty)
32
Multiply line 31 by .04976 and enter the result
33
If the amount on line 31 was paid on or after April 15, 2013, enter 0. If the amount on line 31 was paid
before April 15, 2013, make the following computation to ind the amount to enter on this line:
Amount on line 31 × number of days before April 15, 2013 × .00020 =
34
Penalty (subtract line 33 from line 32; enter here and on line 51)
(continued)
069002120094
IT-2659 (2012)
Page 3 of 4
Schedule C – Regular method
Part 1 – Computing the underpayment
Payment due dates
A
4/15/12
B
6/15/12
C
9/15/12
D
1/15/13
35
Required installments (see instructions)
36
Estimated tax paid
Complete lines 37 through 39, one column
at a time, starting in column A.
37
Overpayment or underpayment from prior period ....
38
If line 37 is an overpayment, add lines 36
and 37; if line 37 is an underpayment,
subtract line 37 from line 36 (see instructions)
39
Underpayment (subtract line 38 from line 35)
or overpayment (subtract line 35 from
line 38; see instructions)
Part 2 – Computing the penalty
40 Amount of underpayment (from line 39)
40
First installment (April 15 - June 15, 2012)
41April 15 ‑ June 15 =
(61 ÷ 366) × 7.5% = .01249
- or -
April 15 ‑
=
(
÷ 366) × 7.5% =
.
41
42 Multiply line 40, column A, by line 41 ............ 42
Second installment (June 15 - September 15, 2012)
43June 15 ‑ September 15 = (92 ÷ 366) × 7.5% = .01884
-or -
June 15 ‑
= (
43
44 Multiply line 40, column B, by line 43
44
Third installment (September 15, 2012 - January 15, 2013)
45September 15 ‑ December 31 = (107 ÷ 366) × 7.5% = .02192
January 1 ‑ January 15
= (15 ÷ 365) × 7.5% = .00307
.02499
Total
September 15 ‑
January 1 ‑
÷ 365) × 7.5% =
45
46 Multiply line 40, column C, by line 45
46
Fourth installment (January 15 - April 15, 2013)
47January 15 ‑ April 15 = (90 ÷ 365) × 7.5% = .01848
January 15 ‑
47
48
Multiply line 40, column D, by line 47
............................................................................................................................ 48
49
Penalty (add lines 42, 44, 46, and 48)
069003120094
Page 4 of 4 IT-2659 (2012)
Schedule D – Failure to pay estimated tax on behalf of partners or shareholders who are corporations or nonresident individuals. Only include partners and shareholders who are subject to estimated tax paid on their behalf by the partnership or New York S corporation (see instructions). If you are listing more than six partners or shareholders, attach additional sheet(s) using the same four‑column format as in the chart below. Include all column D totals from additional sheets on the line provided.
Name of
partner/shareholder
Identifying number
(EIN/SSN)
Number of quarters (1‑4)
during the year estimated tax
was not paid
Column C × $50
Column D total from attached sheet(s) (if any)
50
Penalty (total of column D)
51
Penalty (from line 34)
52
Total penalty (add lines 49, 50, and 51, as applicable; enter here and in Payment enclosed box on the front page)
069004120094
The New York IT-2659 form is used to calculate estimated tax penalties for partnerships and New York S corporations. This applies when there is an underpayment or nonpayment of estimated tax that is required to be paid on behalf of partners and shareholders who are corporations or nonresident individuals.
Partnerships and New York S corporations must file the IT-2659 form if they have partners or shareholders who are required to pay estimated tax. This includes both corporate partners and nonresident individual shareholders. The form is necessary for calculating any penalties due to underpayment of these taxes.
The IT-2659 form must be filed by the later of April 15 or the due date of the partnership or S corporation tax return. If an extension has been granted for filing the tax return, the due date for the IT-2659 form will also be extended accordingly.
To complete the IT-2659 form, you will need to provide specific information about your business, including the legal name, trade name, address, and employer identification number. You will also need to complete Schedules A through D to compute any penalties. Each schedule requires detailed calculations based on income, deductions, and estimated tax payments.
If the IT-2659 form is not filed when required, the partnership or S corporation may face penalties for underpayment of estimated tax. This could result in additional financial liability and interest charges, which can accumulate over time.
The completed IT-2659 form, along with any payment, should be mailed to the New York State Tax Department at the address provided on the form: NYS TAX DEPARTMENT - IT-2659, PO BOX 397, ALBANY NY 12201-0397.
Filling out the New York IT-2659 form requires careful attention to detail. This form is necessary for partnerships and S corporations to report estimated tax penalties for underpayment or nonpayment. Follow these steps to complete the form accurately.
Filling out the New York IT-2659 form can be a straightforward process, but many people make common mistakes that can lead to delays or penalties. One frequent error is failing to include the correct legal name of the business. This is crucial because the tax department uses this information to identify your entity. If the name does not match their records, it can create complications.
Another mistake often made is neglecting to provide the Employer Identification Number (EIN). This number is essential for the tax department to process your form. Without it, your submission may be considered incomplete, leading to potential penalties. Always double-check that this number is accurate and clearly written.
Many filers also forget to mark the correct type of entity. Whether it’s a partnership or an S corporation, this designation affects how your estimated tax is calculated. Failing to select the right box can lead to miscalculations and further issues down the line.
In addition, some people do not complete all necessary schedules. The IT-2659 form requires Schedules A through D to compute penalties accurately. Skipping these schedules can result in incorrect penalty calculations, which could cost you more in the long run.
Another common error is not including payment with the form. The instructions clearly state to staple a check or money order to the form. If payment is not enclosed, your submission may be delayed or rejected entirely.
Additionally, many filers fail to sign the form. The signature of a general partner, member, or authorized person is required for the form to be valid. An unsigned form is considered incomplete and will not be processed.
People often overlook the filing deadline as well. The IT-2659 must be filed by April 15 or the due date of the partnership or S corporation tax return. Missing this deadline can result in additional penalties, so it’s important to mark your calendar and plan ahead.
Another mistake is not using the correct year’s tax rates. The form requires the use of the tax rates for the specific year you are filing for. Using outdated rates can lead to incorrect calculations and potential penalties.
Finally, some individuals do not keep copies of their submitted forms. Keeping a record of what you’ve filed can be invaluable in case there are questions or issues later. It’s always wise to have a copy for your records.
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