On March 19, the Commissioner of New York City’s Department of Finance, Jacques Jiha, announced that New York City will allow for a waiver of penalties for business and excise taxes due between March 16, 2020 and April 25, 2020. Taxpayers may request to have penalties waived on late filed extensions or returns.
The following City taxes are due within this timeframe:
- Hotel Room Occupancy Tax
- Commercial Rent Tax
- Utility Tax and 911 Surcharge
- Cigarette Tax
- Unincorporated Business Tax (for sole proprietors and single member limited liability companies)
It is unclear if property taxes are included in the penalty relief.
A taxpayer that files an extension, return, or makes a tax payment in accordance with these rules, will not be subject to any:
- Late filing penalties
- Late payment penalties, or
- Underpayment penalties
However, while penalties will be waived, interest must be paid on all tax payments received after the original due date, calculated from the original due date to the date of payment.
Paper filed returns submitted under this announcement should be marked “COVID-19” on the top. Similar relief will be provided to electronic filers as well.
Taxpayers that receive a notice from the Department of Finance can submit a request to have penalties waived. The penalty abatement letter should be mailed to:
NYC Department of Finance
P.O. Box 5564
Binghamton, NY 13902-5564
If you have any questions about your New York City taxes under measures enacted in the wake of COVID-19, contact a Friedman professional today.