LAW-01-14-00003-P Procedures for Requesting Extensions of Time to File Annual Reports with the Attorney General by Charitable Entities

1/8/14 N.Y. St. Reg. LAW-01-14-00003-P

NEW YORK STATE REGISTER

VOLUME XXXVI, ISSUE 1

January 08, 2014

RULE MAKING ACTIVITIES

DEPARTMENT OF LAW

PROPOSED RULE MAKING

NO HEARING(S) SCHEDULED

 

I.D No. LAW-01-14-00003-P

Procedures for Requesting Extensions of Time to File Annual Reports with the Attorney General by Charitable Entities

PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:

Proposed Action:

Repeal of section 91.5(f)(3); and addition of new section 91.5(f)(3) to Title 13 NYCRR.

Statutory authority:

Executive Law, section 177(1); and Estates, Powers and Trusts Law, section 8-1.4(h)

Subject:

Procedures for requesting extensions of time to file annual reports with the Attorney General by charitable entities.

Purpose:

To clarify and simplify procedures for requesting extensions of time to file charitable organizations' annual financial reports.

Text of proposed rule:

13 NYCRR Section 91.5(f)(3)

(3) Extension of Time to Submit an Annual Filing.

(i) Upon request, submitted prior to the filing deadline, the time to submit an annual filing pursuant to section 8-1.4 of the Estates, Powers and Trusts Law and/or Article 7-A of the Executive Law may be extended by the Attorney General for a period or periods in the aggregate not to exceed one hundred eighty days. Extension requests shall be sent by means and form, manual or electronic, as designated by the Attorney General. No other filing, application or fees shall be submitted with a request for an extension of time to submit an annual filing.

(ii) Any charitable organization that has submitted a request to the Internal Revenue Service for an extension of time to file an annual filing and/or has received approval of such request shall keep such documents as part of its financial records for at least three years after the end of the period of registration for which they relate.

(iii) The Attorney General has the sole discretion to deny any extension request, regardless of whether a corresponding extension request has been approved by the IRS.

Text of proposed rule and any required statements and analyses may be obtained from:

Karin Kunstler Goldman, Department of Law, 129 Broadway, New York, NY 10271, [phone], email: [e-mail]

Data, views or arguments may be submitted to:

Same as above.

Public comment will be received until:

45 days after publication of this notice.

Regulatory Impact Statement

1. Statutory Authority. Article 7-A of the Executive Law (hereinafter “Article 7-A”) and Article 8 of the Estates, Powers & Trusts Law (hereinafter “EPTL”) require certain organizations and trusts (hereinafter "charitable organizations") to file annual financial reports and other disclosures with the Department of Law and require the Attorney General to establish and maintain a register of such reports. Section 177(1) of the Executive Law and section 8-1.4(h) of the EPTL empower the Attorney General to make rules and regulations necessary for the administration of these provisions.

2. Legislative Objectives. Under current rules, charitable organizations registered with the Attorney General are permitted to submit up to two requests for an extension of the time to file required annual financial reports and, if the organization applied to the United States Internal Revenue Service for an extension of time to file, the second request must be accompanied by a copy of the Internal Revenue Service's approval of that request. The proposed rule continues to require submission of requests for extension of time to file but simplifies the process by permitting charitable organizations to submit a single request for a six-month extension of time to file annual financial reports instead of two separate requests. The rule also eliminates the requirement that charitable organizations submit to the Attorney General copies of extension requests submitted to the Internal Revenue Service.

3. Needs and Benefits. Currently charitable organizations seeking a six-month extension of time to file their annual reports must submit two separate requests. The second request must be as accompanied by a similar request to the Internal Revenue Service. The rule will simplify the process by which charitable organizations must request extensions of time to file. By reducing the number of required requests for extensions of time to file and the number of required documents and by authorizing electronic submission of all extension requests, the rule will also reduce the resources of the Attorney General needed to process such requests.

4. Costs. The rule will not impose any additional costs on charitable organizations. Rather, by reducing the number of required requests for extension of time to file and eliminating the requirement to file additional documents, their costs should be reduced. Likewise, reduction of the number of requests for extension of time to file will result in a reduction of processing costs to the Department of Law.

5. Local Government Mandates. None.

6. Paperwork. No additional forms will be required by this rule. By reducing the number of required requests for extension of time to file annual reports, eliminating the requirement that copies of similar requests to the Internal Revenue Service be submitted, and by permitting electronic submission of such requests, paper filings will be substantially reduced.

7. Duplications. The rule does not require duplication of any filings. Rather, it reduces burdens on charitable organizations by reducing the number of required requests for an extension of time to file annual reports and eliminating the requirement to submit additional documents with such requests.

8. Alternatives. There were no significant alternatives to be considered.

9. Federal Standards. The rule does not exceed any minimum standards of the federal government applicable to charitable organizations required to file annual financial reports with the Attorney General.

10. Compliance Schedule. Regulated organizations will be able to comply with the rule immediately.

Regulatory Flexibility Analysis

The proposed regulations will not impose any adverse economic impact or reporting, recordkeeping or other compliance requirements on small businesses or local governments. The proposed regulations apply to only charitable organizations, trusts and estates required to register with the Attorney General pursuant to Article 8 of the Estates, Powers and Trusts Law and\or Article 7-A of the Executive Law. Neither of those statutes nor the proposed regulations apply to or require any compliance by local governments. The proposed regulations concern the procedures applicable to charitable organizations that seek extensions of time to file annual financial reports and contain no provisions applicable to small businesses or local governments. Accordingly, the proposed regulations will not impose any adverse economic impact or reporting, recordkeeping or other compliance requirements on small businesses or local governments.

Rural Area Flexibility Analysis

The proposed regulations will not impose any adverse economic impact on rural areas or reporting, recordkeeping or other compliance requirements on public or private entities in rural areas. The current and proposed regulations apply only to charitable organizations, trusts and estates (hereinafter "charitable organizations") required to file annual financial reports with the Attorney General pursuant to Article 8 of the Estates, Powers and Trusts Law and\or Article 7-A of the Executive Law. The proposed regulations simplify the procedures applicable to charitable organizations that seek extensions of time to file annual financial reports by reducing the number of extension requests required and authorizing electronic rather than paper filing of requests for such extensions. Accordingly, the proposed regulations will not impose any adverse economic impact or reporting, recordkeeping or other compliance requirements on rural areas or reporting, recordkeeping or other compliance requirements on public or private entities in rural areas.