The coronavirus ( COVID-19) outbreak has crippled businesses throughout the New York State region.
In particular, any business required to pay NY sales tax has felt the hit especially hard.
Delis, restaurants, and other businesses that rely upon traffic to their physical location have seen a dramatic decrease in sales and are just trying to stay afloat due to the harsh shut down requirements.
COVID-19 NY Sales Tax Relief
In response to the COVID-19 pummeling of NY businesses , Governor Andrew Cuomo issued an executive order expanding the New York State Department of Taxation and Finance authority to abate late filing and payment penalties for sales and use tax with a due date of MARCH 20, 2020.
How Does My Business Qualify
Businesses do not automatically qualify under Governor Cuomo’s COVID-19 order.
Sales tax relief will fall under a two part test.
First, New York sales tax returns must be filed and the amount due paid within 60 days of the due date for your business to qualify.
For example, if your sales tax return and payment was due in March 2020, the sales tax return and payment must be received by NYS by no later than May 20, 2020.
If your business fails to do so, then the business does not qualify.
Assuming your business files and pays by the above extended due date, you need to show the following to meet the second part of the test with regard to your inability to meet tax filing or payment deadlines:
Key employees were treated or suspected to have COVID; or
Records necessary to meet tax filing, payment, or other deadlines are not available due to the outbreak; or
Closure orders resulted in business disruption directly resulting from the outbreak and hence, your inability to file and pay sales tax due; or
Your accountant, CPA, or other tax professional was unable to complete the sales tax filing, payment, and other deadlines on your behalf due to the outbreak
Should you require help obtaining NY sales tax relief, our New York sales tax attorneys can assist you.
The abatement of penalties and interest is NOT automatic and you should seek counsel to assist you in getting the best possible result given your circumstances.
Does It Apply to Prior Sales Tax Due
No. The only sales tax relief is for the quarter of March 20, 2020.
There may be an expansion of relief to the second and third quarter.
This remains to be seen.
However, if you have not filed your prior sales tax returns or have not remitted the necessary sales tax due, you should seek counsel from a New York sales tax attorney as the failure to file or pay sales tax is a crime in NYS.
Monthly Sales Tax Filer Exception
Unfortunately, sales tax vendors who are required to file sales tax returns on a monthly basis are not eligible for the abatement of penalties and interest as a result of the later filing or payment of sales tax returns.
Do I Still Have to File Sales Tax Returns
Yes. Your business is still required to file and remit the sales taxes that are due as the business is collecting the sales tax.
The relief that will receive relates to the failure to file and pay penalties as well as any associated interest.
If your business fails to file sales tax returns and remit the sales tax, any responsible person for the business can be held responsible both from a civil (i.e monetary) as well as be subject to possible criminal prosecution.
NYS Sales Tax Relief Options
If you owe sales tax to New York State for prior quarters; have not filed sales tax returns;; or need help in resolving your sales tax liabilities, the experienced NY sales tax attorneys of the Tax Problem Law Center can be of help.
We’ll review your situation in detail and customize the most appropriate strategy to help you obtain the best possible resolution to your NY sales tax problem.