New York Form IT-2658-E is the certificate a nonresident individual partner or S corporation shareholder gives to the entity to stop it from making New York estimated tax payments on their behalf. You sign it, hand it to the partnership or S corporation, and take on the responsibility of paying your own New York estimated tax and filing your own return. The current version covers tax years 2026 and 2027 and expires February 1, 2028.1New York State Department of Taxation and Finance. New York Form IT-2658-E – Certificate of Exemption from Partnership or New York S Corporation Estimated Tax Paid on Behalf of Nonresident Individual Partners and Shareholders
Without the certificate, Tax Law Section 658(c)(4) requires the entity to pay estimated New York income tax for every nonresident partner or shareholder with a share of New York-source income.2New York State Department of Taxation and Finance. Instructions for Form IT-2658 IT-2658-E is how you take yourself out of that pool.
Who Can File It
You qualify under one of two conditions.
The first is a forward-looking certification that you will personally comply with all New York State estimated tax and tax return filing requirements that apply to you for the years covered by the certificate.3New York State Department of Taxation and Finance. Instructions for Form IT-2658-E Certificate of Exemption from Partnership Estimated Tax Paid on Behalf of Corporate Partners That covers the Metropolitan Commuter Transportation Mobility Tax (MCTMT) too, if the entity does business inside the Metropolitan Commuter Transportation District.2New York State Department of Taxation and Finance. Instructions for Form IT-2658 You do not need a prior compliance history to use this path.
The second condition applies if the partnership or S corporation files a group return on Form IT-203-GR and you have elected to be included on it. The group return satisfies your filing obligation, so the entity does not also need to prepay for you.3New York State Department of Taxation and Finance. Instructions for Form IT-2658-E Certificate of Exemption from Partnership Estimated Tax Paid on Behalf of Corporate Partners Group returns need prior Tax Department approval and require at least 11 qualifying nonresident partners sharing the same accounting period, so the individual-compliance box is the more common choice.4New York State Department of Taxation and Finance. Instructions for Form IT-203-GR Group Return for Nonresident Partners
How to Fill Out the Form
IT-2658-E is a single page, available as a fillable PDF from the Department of Taxation and Finance.1New York State Department of Taxation and Finance. New York Form IT-2658-E – Certificate of Exemption from Partnership or New York S Corporation Estimated Tax Paid on Behalf of Nonresident Individual Partners and Shareholders You enter:
- Your first name, middle initial, last name, Social Security number, mailing address, and telephone number.
- The full legal name and Employer Identification Number of the partnership or New York S corporation.
- A check in the box that matches your situation: individual compliance with New York estimated tax and filing rules, or inclusion in a group return.
- Your signature and date, certifying the information under penalty of perjury.
The 2026–2027 form covers both years on one signature, so you don’t refile annually unless something changes or the form expires. A missing signature or the wrong box checked makes the certificate invalid, and the entity will have to withhold anyway.
Where to Send It and When
IT-2658-E does not go to the Tax Department. You give the signed original to your partnership or S corporation, and the instructions say to do that as soon as you determine you qualify.3New York State Department of Taxation and Finance. Instructions for Form IT-2658-E Certificate of Exemption from Partnership Estimated Tax Paid on Behalf of Corporate Partners
Get it there before the entity’s first estimated installment is due. For calendar-year filers, that is April 15, 2026. If the entity has already paid on your behalf for the current installment period, you may not be able to unwind that payment. Once the entity has a valid certificate on file, it can rely on it and is not required to verify your compliance independently.2New York State Department of Taxation and Finance. Instructions for Form IT-2658
What You’re Taking On
Once the certificate is in place, you are personally responsible for quarterly New York estimated tax payments on your share of the entity’s New York-source income. For calendar-year filers, the 2026 installments are due April 15, June 15, and September 15, 2026, and January 15, 2027.5New York State Department of Taxation and Finance. Estimated Tax Payment Due Dates
To avoid an underpayment penalty, your payments and any withholding generally need to cover the lesser of:
- 90 percent of the tax shown on your 2026 return, or
- 100 percent of the tax shown on your 2025 return, if that return covered a full 12 months.
If your New York adjusted gross income for 2025 topped $150,000 ($75,000 if married filing separately for 2026), the prior-year safe harbor rises to 110 percent.6New York State Department of Taxation and Finance. Who Must Make Estimated Tax Payments? Nonresident partners with substantial pass-through income often land in that bracket, so confirm which safe harbor applies before setting your installment amounts.
If the entity does business inside the Metropolitan Commuter Transportation District, the certificate also relieves it of making MCTMT estimated payments for you. It does not eliminate the tax. You still owe MCTMT on your share and are responsible for paying it yourself.2New York State Department of Taxation and Finance. Instructions for Form IT-2658
Penalties If You Fall Short
If you opt out and then underpay, New York applies the ordinary individual underpayment interest rate set under Tax Law Section 697(j). For the first quarter of 2026 that rate is 9.5 percent per year, and it is reset each quarter.7New York State Department of Taxation and Finance. Interest Rates: 1/01/2026 – 3/31/2026
Failing to file at all is costlier. The late-filing penalty is 5 percent of the tax due for the first month and another 5 percent for each additional month, up to 25 percent. A late-payment penalty of 0.5 percent per month, also capped at 25 percent, stacks on top if you file but do not pay.8New York State Senate. New York Code TAX – Additions to Tax and Civil Penalties
The entity has its own exposure. If it fails to make required estimated payments for a nonresident partner who did not provide a valid IT-2658-E, it owes a $50 penalty per failure per partner or shareholder, plus the underpayment interest that would have applied.9New York State Senate. New York Code TAX – Requirements Concerning Returns, Notices, Records, and Statements Submitting a knowingly false certificate can trigger fraud penalties under Tax Law Section 1801.10New York State Senate. New York Tax Law 1801 – Tax Fraud Acts
How Long to Keep the Certificate
Both you and the entity should retain a signed copy. The entity needs it in its records to justify not prepaying on your behalf.2New York State Department of Taxation and Finance. Instructions for Form IT-2658 New York’s general guidance is to keep tax records and supporting documents for at least three years after the related return is filed.11New York State Department of Taxation and Finance. Recordkeeping for Businesses Because the current form covers two tax years, run the three-year clock from the later return, which puts the realistic hold period into early 2031. If the Tax Department asks for the certificate during an inquiry and the entity cannot produce it, the entity can be held liable for the estimated tax it should have paid, plus interest and penalties.