The New York Department of Taxation and Finance is reminding taxpayers of the breaks it’s offering those who’ve been directly impacted by COVID-19. Taxpayers unable to file or pay their sales tax on time may request relief from penalties imposed by the New York Department of Taxation and Finance. In order for the relief to apply, returns must be filed and the amount due must be paid within 60 days of the due date. However, sales tax vendors that file on a monthly basis and participants in the PrompTax program are not eligible for the relief of penalties or interest.
Qualifying taxpayers that have received a penalty notice from the New York State Department of Taxation and Finance can, and should, request an abatement of late filing and interest penalties. This relief can be used for any notice that is received and related to late sales tax payments during the pandemic and due to COVID-19 related restraints. COVID-19 caused many challenges for individuals and businesses throughout the tax season, and any problems arising from the pandemic can be considered a justifiable reason for tax penalty abatements. Valid reasons for requesting relief include:
- closure or social distancing guidelines made it difficult to meet deadlines,
- key employees missing work,
- records that were needed could not be accessed, or
- tax practitioners were unable to meet deadlines.
All cases that are submitted to the New York Department of Taxation and Finance will be handled on a case-by-case basis.
If you have received a notice from the New York Department of Taxation and Finance or would like to request relief, contact the EFPR Group SALT team. We can assist with requesting an abatement of any late penalties or interest that may have been imposed. In an already difficult time for many, it is important to take advantage of any aid that you are eligible for.