New York Sales Tax Guide
Chapter 7: How to manage late New York sales tax return filing
Hopefully you don't need to worry about this chapter because you're getting your New York sales tax filing and remittance done on time and submitted without incident. However, in the real world, mistakes happen. In this chapter, we'll talk about how to avoid costly penalties and fines if you've missed your assigned filing deadline.What do I do if I missed my New York sales tax filing deadline?
The first thing to do is get your return filed. This is definitely one of those situations where things are "better late than never." As long as you don't submit your tax filing paperwork, or hold on to the tax dollars you've collected, you may be accruing fines and interest. It's always best to get your filing done and deal with any penalties and interest payments later.What penalties and interest payments are imposed by the New York Department of Taxation and Finance?
If a registered business that has collected no sales tax in New York, but fails to file a zero tax return (or missed their assigned due date), the penalty is $50
A return filed late by 60 days or less is fined as follows:
- 10% of the tax due for the first month; and
- 1% for each additional month or part of a month not to exceed 30% of the tax due
However, the penalty for a New York sales tax return filed late cannot be less than $50.
A return filed late by more than 60 days is fined as follows by the greater of:
- 10% of the tax due for the first month, plus 1% for each additional month or part of a month, not to exceed 30% of the tax due;
- $100, or 100% of the amount required to be shown as tax on the return, whichever is less; or
Note: You may be subject to fines and a jail sentence if you fail to make, render, sign, certify, or file any return or report.
If you file a return on time but do not remit the tax due, the penalty is 10% of the tax due for the first month, plus 1% for each additional month or part of a month not to exceed 30%.
If you omit more than 25% of the taxes required to be shown on the return, the penalty is 10% of the tax you failed to report.
If you fraudulently fail to pay or pay over any tax due, the penalty is equal to twice the amount of the tax not paid, plus interest on the unpaid tax, paid at the greater of 14 ½%, or the rate set by the Tax Commissioner.
Note: You may be subject to fines and a jail sentence if you willfully fail to depost taxes in a financial institution as required or fail to remit the state and local taxes collected.If I acquire a business, am I responsible for any outstanding sales tax debts, penalties, and interest?
Yes! If you are acquiring a business, it is strongly recommended that you contact the New York Department of Taxation and Finance and inquire about the current state of the potential acquisition. Once you've purchased the business, you will be held responsible for any and all outstanding New York sales and use tax liability.