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 information

E-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.