Complying with federal tax law is challenging enough with so many forms to complete. Complying with multi-state tax law is even more challenging since you have so many jurisdictions to take into account. With that said, it is easy to miss filing simple forms such as annual reports or other fees that may be due since each State is different and there may be different dates throughout the year.
Take New York State for example. Every partnership, limited liability company, or limited liability partnership that has income derived from New York sources must make an annual filing fee payment. The amount of the filing fee is based on the New York source gross income for the tax year immediately preceding the tax year for which the fee is due. If the partnership, LLC, or LLP did not have any New York source gross income for the preceding tax year, the filing fee is $25. Depending on the amount of New York source gross income, the filing fees range from $25 to $4,500.
The fee is remitted by filing Form IT-204-LL within 60 days after the last day of your tax year. So, for calendar year-end taxpayers, this would mean the form is due by the end of February. There is no extension of time to file Form IT-204-LL or pay the annual fee.
For more information, instructions can be found on the New York State Department of Taxation and Finance website.
By Kelly Lynch, CPA