Legal Question in Tax Law in New York

Re: Business tax advice

I suggest you call your Sales Tax Department and explain the problem, in a hypothetical manner and asking that if the applicable returns were filed, if they would be willing to waive any penalties and interest that may be due. You may get a reply to the effect that "ignorance of the law is no excuse" or they may be willing to make the concessions just to get you on track. Starting a new entity may bring you into complaince now, but it does not eliminate the potential exposure for the past activity. Are you sure that you must collect taxes on the goods or services you sell/provide? For example, I had a matter recently which involved the sale of bulk, packaged, coffee by a retail coffee shop. In NJ only sales of prepared coffee is taxable, but sales of packaged coffee is exempt. Yet the retailer was collecting on both. They may have owed refunds to their customers, but no taxes needed to be paid to the State on the exempt sales.