When you buy a business, it is important to understand that you could be taking on liability previously incurred by the seller and unrelated to the sale of the business. One example of this relates to sales tax. Under New York State law, buyers must take certain steps prior to closing the deal to
As the restaurant industry continues to struggle with the impact of COVID-19, tax bills are presenting yet another problem. Shut-downs, continuing restrictions on capacity, and added costs to protect workers and patrons have left restaurants and owners with little cash to pay income and sales taxes. Fortunately, there are payment options that can help
While many businesses are returning to normal, some are still struggling, and the upcoming sales tax deadline can make it feel worse. Earlier this year, businesses that were unable to meet quarterly sales tax filing and/or payment requirements due to COVID-19 were able to have their deadlines extended to June 22, 2020, and have
As a result of the COVID-19 crisis, many federal and New York State tax deadlines were extended. In addition, those who had pending audits or tax collection matters or were paying off back taxes got a temporary break. However, many of these tax relief measures are set to end on July 15, 2020. What
New York takes sales tax liability seriously. It devotes significant resources to ensuring that businesses properly track, collect, and pay sales tax to the government. When a business fails to do that, the state enforces the law using a variety of tools at its disposal, including the following: Collection action against income and assets.
Many individuals and businesses are facing significant financial problems arising from the coronavirus. The Federal and New York State governments have responded with several changes to provide tax relief. Here are the key provisions taxpayers need to know: Federal Taxes 1. Filing and Paying Taxes. Taxpayers may defer filing and paying their federal taxes
As the coronavirus spreads, individuals and businesses are increasingly facing financial problems on top of the potential health concerns. In response to this, both the federal and New York State government have provided some tax relief. Here are a few developments: Federal Taxes The Treasury Department and the Internal Revenue Service have announced that
Tax season is here which means more tax-related scams. The IRS recently published a warning to consumers about a new one involving “ghost” tax preparers. By law, anyone who is paid to prepare or assist in preparing federal tax returns must have a valid 2019 Preparer Tax Identification Number or PTIN. Paid preparers must sign
The New York State Department of Taxation and Finance (NYSDTF) recently announced that two New Jersey-based corporations have pleaded guilty to failing to pay New York State sales tax. The businesses will pay more than $1.4 million, including about $560,000 in sales tax owed plus penalties and interest. This is just the latest press
Did you know that restaurant owners are among the most high profile and common delinquent taxpayers in New York State, according to a Bloomberg BNA analysis? Sales tax rules for restaurants are complex and failure to collect and remit taxes to the state is subject to significant penalties. If you have a restaurant, here are
David Joseph of DAVO Technologies DAVO Technologies has pioneered the process of “fractional daily funding” with their patented process that uses sales data from a merchant's POS or accounting software to set aside a fixed dollar amount or percentage of daily sales. The companies first app, DAVO Sales Tax automatically collects, files,
By: Lance E. Rothenberg, Esq., LL.M. (Taxation) On November 22, 2017, New York’s Tax Appeals Tribunal just issued a sobering decision reminding taxpayers that personal liability for sales taxes, like trust fund taxes, can be difficult to shake. In Matter of Henrie (consolidated with Matter of McBride) (DTA No. 825871), the Tribunal examined the plight of two individuals
Are restaurants shut down for unpaid taxes more often than other businesses? A recent article in the Albany Times Union looked at the high number of restaurant closings every year for nonpayment of sales or withholding taxes. Why are restaurants seized so often? Constant cash flow issues and low-profit margins characteristic of the industry
Many people are surprised to learn that there are circumstances when New York State is permitted to collect a business’s withholding tax and sales tax from responsible persons at the organization. Individuals who are notified that they are being held personally responsible for taxes often try to argue “it wasn’t me” and point fingers
Food and beverage sales are subject to complex tax rules in New York. Failing to pay sales tax can lead to severe consequences. Some of the key rules businesses need to know include the following: 1. When are food and food products taxable. Generally, food and food products are exempt from sales tax under
