Free New York It 2659 Form

The New York IT-2659 form is used by partnerships and S corporations to report estimated tax penalties for underpayment or nonpayment of taxes owed on behalf of partners and shareholders. Several other tax-related documents serve similar purposes in different contexts. Here are nine forms that share similarities with the IT-2659:

• Form 1065: This is the U.S. Return of Partnership Income. Like the IT-2659, it reports income, deductions, and credits for partnerships, but it focuses on overall income rather than estimated tax penalties.
• Form 1120-S: This form is for S Corporations to report income, deductions, and credits. Similar to the IT-2659, it addresses S corporations specifically but does not deal with penalties for underpayment of estimated taxes.
• Form 1040-ES: This is the Estimated Tax for Individuals form. It allows individuals to calculate and pay estimated taxes, akin to how the IT-2659 calculates penalties for partnerships and S corporations.
• Form 941: This is the Employer’s Quarterly Federal Tax Return. While it focuses on employment taxes, it similarly requires timely payments and may involve penalties for underpayment, similar to the penalties outlined in the IT-2659.
• Form 990: This is the Return of Organization Exempt from Income Tax. Nonprofits must file this form annually, and while it does not deal with estimated taxes, it requires accurate reporting of income and expenses, similar to the reporting requirements of the IT-2659.
• Form 1120: This is the U.S. Corporation Income Tax Return. Corporations use this form to report their income, similar to how partnerships and S corporations report through the IT-2659, although it does not focus on estimated tax penalties.
• Form 1041: This is the U.S. Income Tax Return for Estates and Trusts. Like the IT-2659, it involves tax calculations, but it is specific to estates and trusts rather than partnerships or S corporations.
• Form 8862: This is used to Claim Earned Income Credit After Disallowance. While it deals with tax credits rather than estimated tax penalties, it requires specific calculations and documentation similar to the IT-2659.
• Form 2210: This is the Underpayment of Estimated Tax by Individuals, Estates, and Trusts. It directly addresses underpayment of estimated taxes, making it closely related to the IT-2659 in terms of purpose and calculation methods.

Filling out the New York IT-2659 form can be a straightforward process, but many people make common mistakes that can lead to penalties or delays. One frequent error occurs when individuals forget to include all relevant partners or shareholders. It's essential to list every nonresident individual and corporate partner who is subject to estimated tax. Missing even one can result in an inaccurate penalty calculation.

Another mistake is failing to use the correct tax rates for the applicable year. Tax rates can change, and using outdated figures can lead to significant discrepancies. For instance, the individual tax rate for the current year should be verified before entering it on the form. Always check the latest tax information to ensure compliance and accuracy.

In addition, many filers overlook the importance of signing the form. A signature is not just a formality; it confirms that the information provided is accurate and complete. Without a signature, the form may be considered invalid, which can lead to further complications and potential penalties.

Lastly, people often forget to submit the payment along with the form. The IT-2659 requires that the payment be included in the envelope when mailing the form. If payment is not enclosed, it can lead to automatic penalties for underpayment, even if the form itself is filled out correctly. Always double-check that the payment is attached before sending the form to avoid unnecessary issues.

1. What is the purpose of the New York IT-2659 form?

   The IT-2659 form is used by partnerships and New York S corporations to report and calculate penalties for underpayment or nonpayment of estimated tax that should be paid on behalf of their partners and shareholders. This is particularly relevant for nonresident individuals and corporations. By submitting this form, entities ensure compliance with New York State tax laws and avoid further penalties.

2. Who needs to file the IT-2659 form?

   Any partnership or New York S corporation that has partners or shareholders who are nonresident individuals or corporations must file the IT-2659 form if they have underpaid or failed to pay estimated taxes on their behalf. This includes situations where the entity has income sourced from New York and where estimated tax payments are required to be made for those partners or shareholders.

3. When is the IT-2659 form due?

   The form is due by the later of April 15 or the due date of the partnership or S corporation tax return for the year, including any extensions. For example, if a partnership is filing for the calendar year 2012, the IT-2659 must be submitted by April 15, 2013, or by the due date of the tax return, whichever is later.

4. How do I calculate the penalty for underpayment?

   To calculate the penalty, you will need to complete Schedules A through D on the form. Schedule A helps you compute the estimated tax required to be paid on behalf of partners and shareholders. If you paid four equal installments of estimated tax, you can use the short method in Schedule B to find the penalty. Otherwise, you may need to use the regular method in Schedule C. The final penalty amount will be the total from the appropriate schedule, which you then enter on line 52 of the form.

• Misconception 1: The IT-2659 form is only for large corporations.

The IT-2659 form applies to both partnerships and New York S corporations, regardless of size. Small entities also need to comply with this requirement.

• Misconception 2: Estimated tax payments are optional for partnerships.

Partnerships are required to make estimated tax payments on behalf of their partners who are nonresident individuals or corporations. This obligation is not optional.

• Misconception 3: The form must be filed with other tax returns.

The IT-2659 form should be filed separately and not attached to any other forms. This ensures that it is processed correctly.

• Misconception 4: There is no penalty for late filing.

Filing the IT-2659 form late can result in penalties. It is important to adhere to the filing deadlines to avoid additional costs.

• Misconception 5: Only individual partners need to be considered for estimated tax payments.

Both nonresident individual partners and corporate partners are included when calculating estimated tax payments. All applicable partners must be accounted for.

• Misconception 6: The tax rates for estimated payments are the same every year.

Tax rates can change annually. It is essential to use the current rates specified for the tax year when completing the form.

• Misconception 7: Payments can be made at any time without consequences.

Payments must be made by specific due dates to avoid penalties. Timely payments are crucial to ensure compliance with tax regulations.

• Misconception 8: The form is only necessary if there is a tax owed.

The IT-2659 form is required even if there is no tax owed. It serves to report estimated tax calculations and ensure proper compliance.

Filling out and using the New York IT-2659 form requires careful attention to detail. Here are four key takeaways to keep in mind:

• Understand the Purpose: The IT-2659 form is designed for partnerships and New York S corporations to report estimated tax penalties for underpayment or nonpayment of taxes owed on behalf of partners and shareholders.
• Accurate Information is Crucial: Ensure that all information, including legal names, addresses, and employer identification numbers, is filled out accurately. Errors can lead to delays or additional penalties.
• Complete Required Schedules: Depending on your situation, you may need to complete Schedules A through D. These schedules help compute any penalties and provide necessary details about income and deductions.
• Timely Submission is Essential: File the IT-2659 form by the due date, which is typically April 15 or the due date of the partnership or S corporation tax return. Late submissions can result in additional penalties.