INSIGHTS & IDEAS

New York taxes gone wild

New York State continues to amaze us with one absurd tax proposal after another.  Here is the latest from Albany:

·         For sales tax quarterly periods beginning on or after June 1, 2009, penalties up to $1,000 for the first quarter and up to $5,000 for each subsequent quarter will be imposed on any business that fails to maintain sales records or make them available to the tax department in a form that can be audited.

·         When business records lack sufficient organization or are otherwise inadequate to permit direct reconciliation of the receipts, invoices or other source documents with the entries reported on the sales tax returns an additional $1,000 penalty will be imposed.  This penalty will apply even if later on the taxpayer is able to reorganize the records in a form adequate to verify the data and complete the audit.  This penalty took effect April 7, 2009.

·         Interest shall be imposed on the underpayment of sales and use tax at a minimum rate of 14 ½%.

·         Interest will not be paid upon any sales tax refunds if the refund is issued within three months (one quarter of a year) of the date that the application for the refund was received in a processable form with the tax department.

·         Beginning with the fourth quarter 2009 employers must submit wage reporting information on or before January 31^st of each year.  The federal wage reporting information is not due until February 28^th of each year.