Failure to collect and remit sales tax is a serious matter. Individuals need to understand that collecting and pocketing sales tax is stealing from state and local government. Any sales tax money collected does not belong to the businesses and persons failing to remit this money can be criminally charged.
In 2019 a business owner admits to stealing sales tax collected from customers and pleaded guilty to criminal tax fraud and grand larceny. A criminal complaint was brought against a business owner accused of forging invoices and pocketing sales tax. An owner of a restaurant was charged with sales tax evasion facing multiple felony charges for not filing sales tax returns.
Civil cases are serious as well because certain responsible persons are held joint and several liable for collecting and remitting the sales tax. This means NYSDTF can collect the entire outstanding sales tax balance from any single individual responsible person.
If you need assistance with a tax issue or want to speak with a tax attorney call our office at (212) 520-2906.
Below you'll find a list of all posts that have been categorized as “Sales Tax”
When buying a business, the potential buyer will usually perform due diligence to verify information provided by seller and to search for any unknown issues and problems. One potential issue may be tax problems specifically an outstanding sales tax liability. If the business being sold owes past due sales tax the amount of this tax liability must be withheld and …
Part X of the NYS executive budget is the piece of the legislation that more or less codified NYSDTF administrative policy published in TSB-M-11(17)S. The NYS Department of Taxation and Finance website now reads: TSB-M-11(17)S is obsolete and new guidance will be issued shortly. I read the provision which sets the stage for a more formal application process in which eligible individuals …
NYS – RESPONSIBLE PERSON ASSESSMENTS Not all business owners understand that sales tax money is NOT revenue when collected and a deduction when remitted to tax authorities. In fact, any sales tax money collected does not belong to the businesses or owner at all. When you register to collect sales tax (by applying for a certificate of authority) you become …
Update: The NYSDTF administrative policy of granting responsible person relief to certain minority members of LLCs has been codified into law by the New York State 2018-2019 budget signed 4/12/18. Read this before investing in a New York Restaurant All restaurants in New York will have the responsibility to collect and remit state sales tax. Regardless of the type of entity …
