2010 New York Code
TAX - Tax
Article 36 - (1700 - 1703) COMPLIANCE AND ENFORCEMENT INITIATIVES
1703 - Information returns relating to payments made in settlement of payment card and third party network transactions.

§ 1703. Information returns relating to payments made in settlement of
  payment  card and third party network transactions. 1. (a) Every payment
  settlement  entity,  third  party  settlement  organization,  electronic
  payment  facilitator  or other third party acting on behalf of a payment
  settlement entity, all as defined  in  section  6050W  of  the  internal
  revenue code and referred to herein as "a reporting entity," required to
  file  information  returns pursuant to that section shall, within thirty
  days of the filing thereof, file with the department in  such  form  and
  manner  as  prescribed by the commissioner either (i) a duplicate of all
  such information returns or (ii) a duplicate of such information returns
  related to participating payees, as defined  in  section  6050W  of  the
  internal  revenue  code, with a New York state address or New York state
  taxpayers. The commissioner may  require  that  such  returns  be  filed
  electronically.
    (b)  To facilitate accurate reporting by the entities required to file
  information returns pursuant  to  this  section,  the  department  shall
  provide  a  list  or  database of New York state taxpayers no later than
  forty-five days prior to the information  reporting  deadline,  in  such
  form  and  manner  as  prescribed  by  the commissioner. The information
  included in such list or database shall  not  be  used  by  a  reporting
  entity  for  any  purpose  other  than  producing and filing information
  returns pursuant to this section.
    (c) Any information received  by  the  department  on  an  information
  return  filed  pursuant  to this section, concerning a person who is not
  subject to tax in New York, or is not subject to any requirement imposed
  by or pursuant to the authority of this chapter, may not be used by  the
  department. The department shall not redisclose any information received
  on an information return filed pursuant to this section.
    2.  (a)  Any  reporting  entity  failing to file an information return
  required pursuant to subdivision one of this  section  within  the  time
  prescribed  will  be  subject  to  a  penalty  of fifty dollars for each
  failure, if failure is for not more than one month, with  an  additional
  fifty  dollars  for  each  month  or  fraction thereof during which each
  failure continues. However, the total amount of  penalty  imposed  on  a
  reporting  entity  may  not  exceed  two  hundred fifty thousand dollars
  annually.
    (b) The commissioner may waive all  or  any  portion  of  any  penalty
  imposed  by  this  subdivision  with respect to any violation if (i) the
  commissioner determines that the failure to timely file  a  return,  was
  due  to  reasonable  cause  and  not  due  to  willful  neglect, or (ii)
  rescinding the penalty would promote compliance with the requirements of
  this chapter and effective tax administration.