A New York sales tax problem is very serious tax matter.
A sales tax issue can cripple your business and your personal finances.
You can be personally held responsible for a tremendous amount of money by a highly aggressive taxing authority [ the NYS Tax Department].
In certain sales tax matters, you can be criminally prosecuted.
This article is based upon countless businesses and individuals that we assisted throughout New York State and nationwide with NYS sales tax issues.
If after reading this article, you have questions, please reach out to us to see if we can be of help. We can assist you regardless of location.
NY Sales Tax Defense
There are several high stakes sales tax matters [ described below in more detail] that require the assistance of an experienced NY sales tax attorney:
- Sales Tax Audit
- Unfiled Sales Tax Returns
- Unpaid Sales Tax
Here is why you need to be represented by a sales tax lawyer:
If one of the above sales tax issues are not handled properly, you can face the shut down of your business.
Even if you don't have a business anymore, you are personally on the hook financially.
If above sales tax issues are not handled properly, you can possibly never get out from under the sales tax liability.
In certain cases, your matter can be referred for criminal prosecution.
Resolving a New York sales tax problem involves applying the complex sales tax laws to your specific situation and advocating your position under the tax laws.
Handling the case yourself or having an accountant who does your taxes or books day to day but does not handle sales tax matters on a daily basis will damage your chances as everything is at stake.
Please read each sales tax matter in detail to better understand the seriousness of the issues that you are facing.
Free Download: NY Sales Tax Warrant Guide
[7 Must Know FAQs to Protect Yourself & Your Business]
Enter your first name and email address below and get the free guide immediately emailed to you.
NYS Sales Tax Audit
Many aggressive auditors approach a sales tax audit of a business from a “guilty until proven innocent” mentality.
Rightfully so, business owners are often nervous and tend to “say too much” or provide access to information that should not be revealed.
Sales tax laws are complex.
Self-representation in a sales tax audit or more common, representation by the wrong professional often result in large sales tax assessments, which can cripple or shut down your business.
We often see deadlines blown by individuals who are too busy running their business.
We often see information document requests not properly responded to by an accountant who has other more important clients or matters on their plate.
Your sales tax audit needs to be handled proactively by a professional with knowledge of the NYS sales tax laws.
A NY sales tax audit is not a do-it-yourself or "general practice" accountant project.
We can implement the best possible strategy to represent your interests and make sure that you are defended against the possible overpayments of sales tax.
Unpaid NYS Sales Tax
The failure to remit [ pay ] sales tax is a crime in NYS.
If the New York State Department of Taxation and Finance determines that you have attempted to evade the payment, reporting, or assessing of NY sales tax, you can be investigated for New York sales tax fraud.
[ You can search the internet and see examples of NYS prosecutions for sales tax].
The New York State Department of Taxation and Finance has a Criminal Investigation Department (CID) that may conduct an investigation to determine if you have engaged in a deliberate intent to avoid the payment of NY sales tax.
If there is such a finding, your sales tax matter may be referred to local NY District Attorney in the county in which you conduct business for further investigation and possible prosecution.
Any communications between you and your accountant are not covered by attorney- client privilege and your accountant can be called to testify against you.
As such, representation by a NYS sales tax attorney is critical so that attorney-client privilege is maintained.
A payment plan for back sales tax owed to NYS is possible. We can help you obtain the best possible terms, and possibly get the penalties abated.
However, the worst possible thing you can do is represent yourself or have an accountant represent you.
We understand. You are busy running your business.
As such, be careful what you say as it can come back to bite you.
New York sales tax lawyer Charles Rosselli can take over the entire process from beginning to end and ensure that the best possible agreement is established.
Unfiled Sales Tax Returns
One of our primary goals is to ensure that any possible criminal exposure is reduced or eliminated.
For one reason or another, you may not have filed a sales tax return or multiple sales tax returns for your business.
There also may be instances where a business owner may have understated the sales tax of the business.
The failure to file or intentionally understate a sales tax return is considered a crime in New York State.
Filing a past due sales tax return or amended return does not eliminate the criminal exposure and the penalties.
Sales tax attorney Charles Rosselli can prepare, review, and negotiate an agreement with the Department of Taxation and Finance so that your interests are protected throughout the process.
It is important that you are represented by an experienced sales tax lawyer in a sales back tax matter so that the possibility of a sales tax fraud investigation is reduced and attorney- client privilege is established.
Settling Your Sales Tax Liability
You or your business may be assessed a large sales tax liability.
Given the finances of some businesses, an affordable payment arrangement with the State may not be possible.
Even if you shut down the business, you are personally on the hook.
You will be personally assessed and everything you own is at stake as well as any income.
The NY Tax Department will chase you across state lines to get their money.
There may be a viable solution [ in certain cases, an offer in compromise ].
If the offer is accepted by the Department of Taxation and Finance, your tax liability, penalties, and interest may be lowered or eliminated.
An offer in compromise relating to sales tax is complex.
Every case is different.
One of the primary reasons an offer will fail is that the offer was not based on the sales tax laws.
Determining and negotiating acceptable sales tax offers is what experienced NYS sales tax attorney Charles Rosselli does day in and day out.
Sales tax attorney Charles Rosselli has had hundreds of thousands of dollars of penalties and associated penalties forgiven on behalf of his clients.
By working with us, you and your business has the greatest chance of success.
NYS Sales Tax Penalty Abatement
A sales tax penalty can amount to tens of thousands and in certain cases, hundreds of thousands of dollars.
Penalties can be abated if we can prove that you had “ reasonable cause” under the New York State tax law.
Experienced sales tax attorney Charles Rosselli can help you determine whether you have “reasonable cause” and formulate the best argument for a possible penalty abatement.
We can advocate on your behalf to help you save money.
Responsible Person Defense
NY sales tax are referred to as “ trust fund” taxes.
You, the business owner, will be held personally responsible for the sales tax liability of the business.
You are typically deemed a “responsible person” if you were an owner of the business or your were someone that was responsible for collecting and paying over of the sales tax to New York State.
In certain cases, other individuals may be deemed personally responsible under the tax laws.
If you are an owner, a shareholder, or an officer of a business, you are personally responsible for ensuring the collection and turning over of all sales and use tax to the New York State Department of Taxation and Finance.
Are you a responsible person under the applicable sections of the tax laws?
There are instances when New York State has incorrectly assessed an employee of the business or an officer of the business.
Sales tax attorney Charles Rosselli can review your situation ; determine whether you were correctly assessed a responsible person; and if not, challenge the responsible person assessment.
10 Stages of NY Sales Tax Enforcement
The typical stages or steps that your sales tax collection matter will take with the New York State Department of Taxation and Finance :
Receipt of Collection Notice with Penalties & Interest
Assignment to an Agent for Enforcement
Tax Warrant Issued
Levy of business bank accounts, merchant accounts, and receivables
Revocation of Certificate of Authority
Your Business is closed.
Seizure & Sales of Business Assets
You will be personally assessed for the sales tax liability.
Your driver’s license by may be suspended if you owe over $10,000
Your personal assets and income will be levied or seized.
Sales tax penalties and interest can amount to up to 14.5% of the the sales tax liability [ compounded daily].
Sales tax problems only get more costly with time.
NYS Sales Tax Warrant Defense
Once a your business is issued a tax warrant by the NY Department of Taxation and Finance pertaining to your sales tax problem, a levy on your business bank accounts, receivables, and merchant credit card processing will take place.
Also, the tax warrant becomes a matter of public record, which can adversely affect the credit of your business.
A tax warrant can be enforced for 20 years.
If you not already aware, New York State is very aggressive with respect to sales tax audits as well as the collection of past due sales tax.
Experienced New York Sales Tax Lawyer [ take the next step]
A Few of Our Sales Tax Defense Results
Liability reduced from $109,484 to $15,300
An accountant for an autobody shop came to us with a difficult sales tax matter. We helped his client significantly reduce his sales tax liability.
Penalties of $51,000 eliminated
After a sales tax audit of a NY deli, we helped the deli owner negotiate a successful payment plan and obtain a penalty abatement.
NY Sales Tax Non-Filer Avoids Jail
We assisted a garbage company that was given the wrong advice by their accountant not to file sales tax returns. The company was being pursued by the NY Tax Department.
NY Sales Tax Audit Success
We assisted a small business throughout the audit process so that the business could continue to successfully operate. We then negotiated a successful agreement.
Every sales tax matter is different.
Your specific circumstances need to be thoroughly reviewed and analyzed to determine what the best possible solution may be.
We can help you navigate the best solution to your New York sales tax matter from beginning to end.
Your accountant does not have attorney client privilege in the case turn criminal at some point. No one has a crystal ball and whether a case stays civil or goes criminal is a judgment call by the NY Tax Department.
Further, do either you or your accountant handle serious sales tax issues on a daily basis?
Proper preparation and representation can help you:
- avoid or minimize sales tax penalties
- avoid possible criminal investigation
- reduce inflated sales tax assessments
You should be protected from the outset of even a routine sales tax problem from the beginning by New York sales tax attorney Charles Rosselli
