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SALT TALK: NYS Guidance Clarifies Penalty and Interest Relief for Late Payment of Sales Tax Due March 20th

Posted by Richard Goldstein, J.D. on Mar 23, 2020 4:22:05 PM

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The New York State Department of Taxation & Finance has issued guidance clarifying penalty and interest relief for late payment of sales tax due on March 20. Certain taxpayers are not eligible for relief, including the following:

  • Sales Tax Vendors who are required to file returns on a monthly basis, and
  • Participants in the Promptax program for sales and use tax or prepaid sales tax on fuel.

Additionally, relief is not automatic and will be granted on a case by case basis. The Governor issued an executive order expanding the Tax Commissioner’s authority to abate late filing and payment penalties to also allow the Commissioner to abate interest on quarterly sales and use tax filings and remittances with a due date of March 20, 2020 for those who were unable to timely file and pay as result of the COVID-19 virus, such as:

  • Taxpayers who were unable to meet tax filing, payment, or other deadlines because key employees were treated or suspected to have COVID-19;
  • Taxpayers whose records necessary to meet tax filing, payment, or other deadlines are not available due to the outbreak;
  • Taxpayers who have difficulty in meeting tax filing, payment, or other deadlines because of closure orders or similar business disruptions directly resulting from the outbreak; and
  • Taxpayers whose tax practitioners were unable to complete work to meet tax filing, payment, and other deadlines on behalf of their clients due to the outbreak.

The guidance also instructs taxpayers how on how to request abatement of penalties.

*Please note that the Tax Department has not yet issued a written statement regarding extending filing and payment deadlines for individual or business income taxes*

Questions? Contact Richard Goldstein at 212.331.7557 | rgoldstein@berdonllp.com or reach out to your Berdon tax advisor.

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