Sales and Use Tax Penalties

• 10% of the tax due for the first month, plus 1% for each additional month or part of a month, not to exceed 30% of the tax due;
• $100, or 100% of the amount required to be shown as tax on the return, whichever is less; or
• $50.

• fail to make, render, sign, certify, or file any return or report.  (Tax Law, sec. 1801(a)(1) and sec. 1802-1807)

• willfully fail to charge separately the state and local sales tax on any bill, statement, or receipt; (Tax Law, sec. 1817(d)), or
• willfully fail to collect state and local sales tax required to be collected. (Tax Law, sec.1801(a)(6) and sec.1802-1807)

• willfully fail to file a bond or other security, or deposit taxes, in any banking institution as required; (Tax Law, sec. 1817(e))
• willfully fail to remit the state and local taxes collected; (Tax Law, sec.1801(a)(5) and sec. 1802-1807), or
• with intent to evade tax, willfully fail to pay any tax. (Tax Law, sec. 1801(a)(7) and sec. 1802-1807)

• fail to make, render, sign, certify, or file any tax return or report; (Tax Law, sec.1801(a)(1) and sec. 1802-1807), or
• engage in any act to defraud the state or its political subdivisions or a government instrumentality within the state by false or fraudulent pretenses, representations, or promises as to any material matter in connection to sales and use taxes. (Tax Law, sec. 1801(a)(4) and sec. 1802-1807)

• sell taxable tangible personal property or taxable services,
• sell automotive fuel,
• receive amusement charges,
• operate a hotel,
• purchase or sell tangible property or services for resale, or
• sell cigarettes. (Tax Law, sec. 1145(a)(3)(i))

• fail to surrender your Certificate of Authority once a notice of revocation or suspension becomes final
  (Tax Law, sec. 1817(a));
• are an entertainment promoter, and you willfully authorize a person without a Certificate of Authority to make taxable sales at your event; (Tax Law, sec. 1817(i)), or
• do any of the following without a required Certificate of Authority: 
  • sell taxable tangible personal property or taxable services,
  • receive amusement charges,
  • operate a hotel,
  • purchase or sell tangible property or services for resale, or
  • sell automotive fuel.
    (Tax Law, sec. 1817(a))

• willfully fail to keep the required records; (Tax Law, sec. 1817(g))
• willfully file or submit a return, report, statement, or other document that you know contains any materially false or fraudulent information, or omits any material information; (Tax Law, sec. 1801(a)(2) and sec. 1802-1807)
• knowingly supply or submit false or fraudulent information in connection with any return, audit, investigation, or proceeding, or you willfully fail to supply information within the time required; (Tax Law, sec. 1801(a)(3) and sec. 1802-1807), or
• issue an exemption certificate, interdistributor sales certificate, resale certificate, or other document which can provide evidence that taxes do not apply to a transaction which you do not believe to be true and correct as to any material matter, which omits any material information, or which is false, fraudulent, or counterfeit. (Tax Law, sec.1801(a)(8) and sec. 1802-1807)

• an insurer making payments to vendors for motor vehicle repairs,
• a registered franchisor with at least one franchisee required to be registered as a sales tax vendor, or
• a wholesaler making certain sales of alcoholic beverages without collecting sales or use taxes.

aid or assist in the preparation or presentation of fraudulent sales and use tax returns, reports, statements, or other documents. (Tax Law, sec. 1145(i))

(see Penalties for miscellaneous tax fraud acts for Crimes and Other Offenses)

• as a show promoter, willfully fail to file a required notice of show or operate a show (or rent, lease, or grant a license to use space for a show) without obtaining a permit from the Tax Department; (Tax Law, sec. 1817(c)), or
• as an entertainment promoter, willfully authorize a person to make sales of tangible personal property at an entertainment event without first requiring the vendor to obtain a Certificate of Authority or you fail to obtain an entertainment promoter certificate. (Tax Law, sec.1817(i))

• are an owner of a filling station and you willfully and knowingly have in your custody, possession or control motor fuel or diesel motor fuel on which the prepaid tax has not been assumed or paid by a distributor or was required to have been passed through to you and was not included in the cost of the fuel to you; (Tax Law, sec. 1817(f))
• are required to collect tax on the sale of cigarettes you sell at retail and you willfully and knowingly have in your custody, possession or control cigarettes on which the prepaid sales tax has not been assumed or paid by a licensed agent or was required to have been passed through to you and was not included in the cost of the cigarettes to you; (Tax Law, sec. 1817(k)), or
• falsely or fraudulently make, alter, or counterfeit any cigarette stamp; cause stamps to be falsely or fraudulently made, altered or counterfeited; or knowingly and willfully possess, offer for sale, purchase, or pass such stamps; or knowingly and willfully possess cigarettes in packages bearing such false, altered, or counterfeited stamps; also if you knowingly and willfully make, cause to be made, purchase or receive or possess any device for forging or counterfeiting stamps. (Tax Law, sec. 1817(I))

• are required to collect taxes on parking in Manhattan, and you willfully fail to include all required information required to be shown on a ticket or other memorandum. (Tax Law, sec. 1817(j))