Black and white photo of the Brooklyn bridge in New York.

The instructions and guidance given by the New York State Department of Taxation and Finance in relation to partnerships in New York will very often make a distinction between so-called “Article 22 Partners” and “Article 9-A Partners”, but the Department also doesn’t exactly make it easy to tell what the difference between these two types of partners really is. However, it is obviously important to understand what the difference is between the two, if for no other reason than the fact that when a partnership’s New York return is prepared, the following informational boxes need to be filled out:1

Snapshot of the section of Form IT-204 where the number of Article 22, Article 9-A and Other partners that are members of the partnership is given.

On a New York State partnership return (Form IT-204), the number of partners that fit each category, including Article 22 and Article 9-A partners, must be given.

What’s the difference?

So what is the difference between an Article 22 and an Article 9-A partner? And what would be an “Other partner”? The difference relates to what type of entity the partner is. An Article 9-A partner is, quite simply, a partner that is taxed as a Corporation or as an S Corporation. An Article 22 partner would be any partner that is an individual, another partnership, or a trust or estate.

The partner labels “Article 22” and “Article 9-A” come from the Articles in Chapter 60 of New York State Tax law that apply for purposes of taxing these various types of entities. More specifically, Article 9-A, comprising of N.Y. Tax Law Sections 208 through 219-a, contains rules that apply to Corporations and S Corps. Article 22, comprising of N.Y. Tax Law Sections 601 through 699, contains rules that apply to individuals, estates, trusts and pass-through entities.

So what about “Other” partners? Which type of partners would fit in this category? The best examples of partners that are neither Article 22 nor Article 9-A partners would be any sort of tax-exempt organizations (including IRAs) or government entities.

  1. From 2014 NYS Form IT-204, Section 1, Question F, http://www.tax.ny.gov/pdf/2014/fillin/inc/it204_2014_fill_in.pdf

Blake is a CPA and a law school graduate specializing in taxology, tax and finance process automation and optimization, and cloud accounting systems.