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

If you can't e-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 for tax preparers

Penalties for both Preparers and Individuals are outlined on the New York Electronic filing mandate for business taxpayers website:

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 e-filed won't be eligible to receive interest until the document is filed electronically.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.