New York - Sales and Use Tax: Bulletin on Filing Requirements for Tax Returns Updated

The New York Department of Taxation and Finance has updated a tax bulletin (TB-ST) discussing the sales and use tax filing requirements for quarterly, part-quarterly (monthly), and annual filers. The frequency of filing sales tax returns depends on the amount of taxable sales (and purchases subject to the use tax) or the amount of tax due. Even if a taxpayer's business did not make any taxable sales or purchases during the reporting period, the taxpayer must file a sales and use tax return by the due date. Taxpayers will automatically be classified as an annual filer if, on their registration application, they indicate that they do not expect to pay or collect any sales or use tax (i.e., they are registering to accept exemption certificates) and describe their major business activity as manufacturer or wholesaler. If a taxpayer does not qualify to file annually, he or she will be classified as a quarterly filer when first registering for sales tax purposes. A taxpayer's filing period may change from annual to quarterly (depending on the amount of total sales or tax due) or from annual or quarterly to part-quarterly (depending on the amount of taxable sales).

The department requires quarterly and monthly sales tax filers who meet the following conditions to electronically file their sales tax returns and make the payments associated with those returns by electronic withdrawal: (1) a tax preparer is not used to prepare sales tax returns; (2) a computer is used to prepare, document, or calculate returns; and (3) broadband Internet access is available.

Sales tax returns generally must be filed no later than 20 days after the end of the period to which they related. If a taxpayer does not file a return and pay any tax due on or before the due date, penalties and interest will be imposed. Penalties and interest are calculated on the amount of taxes due. The minimum penalty for late filing is $50, even if no tax is due for the reporting period. Interest is due on any amount not paid when due and accrues from the due date of the return to the date the tax is paid. Interest is compounded daily, and the rate may be adjusted quarterly.