Form Dtf-96: A Step-By-Step Filing Guide

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As a business owner or entrepreneur, you're likely no stranger to the complexities of tax filings and compliance. One crucial form that requires attention to detail is the Form DTF-96, also known as the "Report of Partnership or S Corporation Income" form. This form is used to report the income, deductions, and credits of partnerships and S corporations in the state of New York. In this article, we'll take a comprehensive look at the Form DTF-96, its importance, and provide a step-by-step guide on how to file it accurately.

Understanding Form DTF-96

The Form DTF-96 is a critical document that helps the New York State Department of Taxation and Finance (DTF) assess the income tax liability of partnerships and S corporations. The form is used to report the income, deductions, and credits of these entities, as well as to allocate the tax liability among partners or shareholders. Accurate filing of the Form DTF-96 is essential to avoid penalties, fines, and even audits.

Who Needs to File Form DTF-96?

Partnerships and S corporations that are required to file a federal partnership or S corporation return (Form 1065 or Form 1120S) and have New York source income must file the Form DTF-96. This includes:

• Partnerships and S corporations with a place of business in New York
• Partnerships and S corporations with income sourced from New York
• Partnerships and S corporations that have a partner or shareholder who is a resident of New York

Step-by-Step Filing Guide

Filing the Form DTF-96 requires attention to detail and a thorough understanding of the tax laws and regulations. Here's a step-by-step guide to help you file the form accurately:

Step 1: Gather Required Information

Before starting the filing process, gather all the required information, including:

• Federal tax return (Form 1065 or Form 1120S)
• New York State tax return (Form IT-204)
• Partnership or S corporation financial statements
• Schedule K-1 (Form 1065 or Form 1120S)
• New York State withholding tax returns (Form IT-2104)

Step 2: Determine the Filing Status

Determine the filing status of the partnership or S corporation:

• Check if the entity is a partnership or S corporation
• Determine if the entity is a domestic or foreign entity
• Check if the entity has a valid New York State tax identification number

Step 3: Complete the Form DTF-96

Complete the Form DTF-96 by filling out the required sections:

• Section 1: Entity Information
• Section 2: Income and Deductions
• Section 3: Credits and Allocations
• Section 4: Partner or Shareholder Information
• Section 5: Signatures and Verification

Step 4: Attach Supporting Schedules and Statements

Attach supporting schedules and statements, including:

• Schedule K-1 (Form 1065 or Form 1120S)
• New York State withholding tax returns (Form IT-2104)
• Financial statements and supporting documentation

Step 5: File the Form DTF-96

File the Form DTF-96 with the New York State Department of Taxation and Finance (DTF) by the required deadline:

• Electronic filing: Use the New York State Department of Taxation and Finance's online filing system
• Paper filing: Mail the completed form to the address listed on the DTF website

Penalties and Fines for Non-Compliance

Failure to file the Form DTF-96 or filing an inaccurate return can result in penalties and fines. These can include:

• Late filing penalty: 5% of the tax due for each month or part of a month, up to 25%
• Accuracy penalty: 20% of the tax due
• Interest on unpaid tax: 6% per annum

Conclusion

Filing the Form DTF-96 requires attention to detail and a thorough understanding of the tax laws and regulations. By following the step-by-step guide outlined in this article, you can ensure accurate and timely filing of the form. Remember to gather all required information, determine the filing status, complete the form, attach supporting schedules and statements, and file the form by the required deadline. Failure to comply can result in penalties and fines, so it's essential to take the necessary steps to avoid non-compliance.

We hope this article has provided you with a comprehensive guide to filing the Form DTF-96. If you have any questions or need further assistance, please don't hesitate to comment below or share this article with others.