Per the New York website, Who the tax preparer e-file mandate applies to
If you can't electronically file the return because it's not supported by your approved e-file software or it can't be filed on our Web site, then you aren't required to e-file it.
Additional information for preparers is available on the New York State website:More tax preparer e-file mandate informationE-file mandate penalties
Penalties for both Preparers and Individuals are outlined on the New York website E-file - mandate for business taxpayers
:Additional penalties for failure to e-file certain returns on or after January 1, 2012
If you or your preparer are required to file a tax document electronically and instead file on paper, you're subject to the following penalties:
- $50 penalty for each tax document not electronically filed
- $50 penalty for failure to pay electronically
- a penalty specific to your tax type for failure to file
In addition, any overpayment claimed on a return that was required to be electronically filed won't be eligible to receive interest until the document is filed electronically.