Per the New York Tax preparer e-file mandate web page:

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:

Penalties for failing to electronically file

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; and
• 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.