Sales Tax State Activity Update - December 2004

New York Approves Select Private Couriers for Timely Filing

Generally, tax returns, payments, and other documents sent to the New York State Tax Department are considered to be on time if they are postmarked by the U.S. Postal Service on or before the due date of the return, payment, or other document.

As a result of the 1997 Taxpayer Bill of Rights, taxpayers can also use certain private delivery services in addition to the U.S. Postal Service with the same assurance. However, private delivery services must be authorized by the U.S. Secretary of the Treasury or by the New York State Commissioner of Taxation and Finance to qualify for the timely postmarked is timely filed/paid rule.

Qualifying Delivery Companies and Services

DHL Express (DHL)
DHL Same Day Service
DHL Next Day 10:30 am
DHL Next Day 12:00 pm
DHL Next Day 3:00 pm
DHL 2nd Day Service

Federal Express (FedEx)
FedEx Priority Overnight
FedEx Standard Overnight
FedEx 2 Day
FedEx International Priority
FedEx International First

United Parcel Service (UPS)
UPS Next Day Air
UPS Next Day Air Saver
UPS 2nd Day Air
UPS 2nd Day Air A.M.
UPS Worldwide Express
UPS Worldwide Express Plus

The Commissioner of Taxation and Finance may designate additional private delivery services that meet Internal Revenue Code (IRC) criteria, and may likewise withdraw any designation if the private delivery service is found to be inadequate.

Rules for determining postmark date
For purposes of the timely postmarked is timely filed/paid rule, the IRC requires private delivery services to record the date when they receive an item. The recorded date is treated as the postmark date. A tax return or payment postmarked by one of the designated delivery services on or before the due date will be considered as having been filed or paid on time. The delivery service may either record the date electronically to its database, or mark the date on the cover of the item.

DHL and UPS record these dates electronically. If one of these services delivers a return, payment, or other document after the due date, the New York State Tax Department will presume that the postmark date precedes the delivery date by the normal amount of time it would take to deliver the item under the specified delivery terms (for example, two days before the actual delivery date for a two-day delivery service). If you need or want proof of an electronically recorded postmark date for a tax return or payment, you must request it from the private delivery service before the expiration of its data storage period. Though the private delivery service may choose to store the dates longer, DHL and UPS are only required to store these dates (electronically or by microfiche) for six months. Up until that time, you can get postmark information by contacting the couriers.

FedEx Priority Overnight, Standard Overnight, and 2 Day use an electronically generated label on the cover of all items it delivers, including those items that already have an air bill attached. The date on which an item is given to FedEx for delivery is marked on the label. There are two types of distinguishable labels. One is generated and applied to an item by a FedEx employee; the other is generated (using computer software or hardware provided by FedEx) and applied to an item by the customer. If an item has a label generated and applied by FedEx, the date on that label is treated as the postmark date (even if the item also has a label generated and applied by the customer). If an item has a label generated and applied by the customer, the date on the label is treated as the postmark date if the item is received within the normal delivery time (for example, one day for FedEx Priority Overnight). If it is not received within the normal delivery time, it is up to the taxpayer to establish the reason for the delay and to establish that the item was given to a FedEx employee on or before the due date. The information recorded electronically to the database of FedEx can be used to show that the item was actually given to or picked up by a FedEx employee on or before the due date.

Private delivery companies cannot make deliveries to PO box addresses. If you will be using a private delivery service, and the mailing address listed in the instructions is a PO box, you will need to obtain the street address.

View this publication in its entirety: http://www.tax.state.ny.us/pdf/publications/general/pub55_1104.pdf New York State Department of Taxation and Finance, Publication 55, 11/04

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