New York – Updated Filing Requirements for Sales Tax Returns

SALT Report 1627 – The New York Department of Taxation updated their tax bulletin regarding the sales and use tax filing requirements for quarterly, part-quarterly/monthly, and annual filers, as well as the e-file mandate.
If you are registered for sales and use tax purposes in New York State, you must file sales and use tax returns.  All sales tax returns must be filed no later than 20 days after the end of the reporting period. If a Taxpayer does not make any taxable sales or purchases during the reporting period, the Taxpayer is still required to file sales and use tax returns by the due date.
Filing Frequency
The filing frequency is determined by the amount of taxable sales, the purchases subject to use tax, or the amount of tax due. Typically, Taxpayers will be classified as an annual filer if they indicate on their registration application that they do not expect to pay or collect any sales or use tax, are registered only to accept exemption certificates, and their major business activity is manufacturing or wholesaling. If a taxpayer does not qualify as an annual filer they will be classified as a quarterly or monthly filer.
Filing Changes
A Taxpayer’s filing frequency may change from annual to quarterly or part-quarterly depending on the amount of taxable sales. The Department will attempt to notify Taxpayers of any changes in their filing status. However, it is the Taxpayer’s responsibility to report any changes in their status to the Department and to file their returns timely, whether the Department notifies them or not.
e-File Mandate
The Department requires certain annual, quarterly and monthly sales tax filers to e-file their sales tax returns and to make all payments by electronic withdrawal from their bank accounts. The e-file mandate applies to Taxpayers who meet the following conditions:
  • Does not use a tax preparer to prepare sales tax returns
  • Uses a computer to prepare, document, or calculate returns, and
  • Has access to broadband Internet
All Taxpayers will need to register with the Department through Online Services before they can e-File.
Penalties and Interest
If a Taxpayer does not file a return and pay their taxes on or before the due date, the Department will impose penalties and interest. The minimum penalty for late filing is $50 even if no tax is due for the reporting period.  Interest begins to accrue on any amount not timely paid from the due date of the return until the tax is paid. Interest will be compounded daily and the rate is subject to change.
Taxpayers can use the online Penalty and Interest Calculator to determine the amount of penalty and interest due.  Additionally, the Department warns Taxpayers that civil and criminal penalties may apply for failing to comply with their sales tax collection and remittance responsibilities.
The tax bulletin provides a list of returns that must be filed by certain Taxpayers and the filing deadlines that accompany the returns.
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