“We don’t charge it. We just collect it.” Most of us have seen this whimsical sign at some time or another in a store or business. It’s the owners somewhat sarcastic, humorous way of reminding the customer that the business doesn’t charge or keep the sales tax. Instead the business is, just as the sign says, collecting the sales tax on behalf of New York State.
Unfortunately, some business owners decided to collect the sales tax but not forward it on to New York State, in whole or in part. What these business owners fail to realize is that collecting but not remitting sales tax to New York State is a crime. Theft of sales tax. In addition to being liable for the unpaid sales tax (plus penalties and interest) the responsible parties may be charged criminally and could face jail time.
If you own a business and have been collecting sales tax but have fallen behind or believe you may have miscalculated the amount you were to pay New York State you do have options. Contact our office and let Beige Law help you evaluate your situation.