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- NYS Sales Tax payments delayed from March 20th to May 20th, giving vendors only 60 days relief
- Short period of relief leaves vendors frustrated, as most are still out of business
- No guidance from Governor or Dept of Taxation and Finance for further relief at this time
In an effort to mitigate the financial carnage the Coronavirus has caused in the business community, Governor Cuomo announced a delay in all late filing penalties and fees for businesses in New York State (NYS) that file quarterly sales tax returns. The announcement was made as part of the Governor’s State of Emergency declaration on March 7th. The overall intent of the delay in payment was to keep as much cash in businesses as they devised a plan to survive the shutdowns caused by the Coronavirus. However, as payments begin to come due on May 20th and with no end to the shutdown in sight, many business owners are struggling to find the cash to pay NYS while wondering why there has been no further delay in this payment.
Sales tax is paid overwhelmingly by service industry companies, ranging from retailers to mom-and-pop coffee shops, all of which have been intensely impacted by the forced closures and stay-at-home orders from the Governor. New York, often painted as the epi-center for the Coronavirus infection, continues to lag behind other states, such as Texas and Florida, in a progression towards re-opening, painting a bleak picture for many of these businesses who do not have an online presence to sell their goods. Additionally, these continued closures come at a time where an additional 3.2 million new Americans filed for unemployment in the last week and layoffs are growing at a pace not seen on record since 1967, according to the Wall Street Journal. In a period where many cannot generate profits from their operations, it is unclear where Governor Cuomo and NYS believe that businesses will find the cash to pay the taxes on sales that have seemingly dried up.
Please do not hesitate to reach out to our Coronavirus Response Team for assistance in filing for sales tax relief or analyzing your business financials to see how you can afford to pay your quarterly sales tax that is due on May 20. Moreover, check out our DSJ COVID-19 Information Center to access helpful information provided by NYS relating to FAQs, updates from the Governor, and more.
Sincerely,
Anthony Perrone
Financial Services Partner
Contact:
516-541-6549 | Email