New York SBDC Research Network

In addition to business taxes required by the federal government, you will have to pay some state and local taxes. Each state and locality has its own tax laws. The links below provide access to key resources that will help you learn about your state tax obligations. Having knowledge of your state tax requirement can help you avoid problems and your business save money. Read MORE .

Segregated accounts Establish a segregated bank account for sales taxes. NYS Tax Department encourages all sales tax vendors to voluntarily establish a separate bank account for sales taxes that they collect on behalf of New York State to make it easier to comply with the tax law. To improve sales tax compliance, they can require certain sales tax vendors to deposit sales tax into a separate bank account. This tax law change was effective March 31, 2011. Sales Tax Filing Responsibilities A sales tax return is still required to be filed, if a registered vendor, did not collect any tax for the tax period in question. Vendor Collection Credit (currently at 5% of tax payable except monthly filers with a maximum of $200 ) Sales Taxes are trust taxes – A responsible person can be held personally liable for payment of taxes. If a business ceases doing business, they must file a final sales tax return and return the Certificate of Authority to the Department. Sales Tax Exemp

From HERE : Are you doing business on the Internet? Selling on eBay? Promoting or advertising someone else’s products on your website or blog? Online money-making opportunities are plentiful – from selling your old books via online auction to promoting products and services for online merchants, or becoming an online merchant yourself. But at what point does this mean you are in business yourself and, since you are making money online, what are your tax and regulatory obligations?

The business community is dead-set against raising taxes on the rich, right? Sorry, trick question. It's fallacious to think that there is single, monolithic bloc of company owners and managers out there all singing from the same economic hymnal. Many small businesses, in contrast to U.S. multinationals, largely back the so-called Buffett rule, a plan made famous (or infamous) by legendary investor Warren Buffet that would hike tax rates on top income-earners, according to a new survey. More HERE .

Now is the time to take advantage of a basket of tax opportunities that can help your small business reduce its tax liability and save money come April 2012. More HERE .

Thursday, December 15, from 1 p.m. to 2 p.m., EST WASHINGTON – With the end of the 2011 tax year right around the corner, small business owners can help prepare themselves for the upcoming filing season by clicking in to the U.S. Small Business Administration’s free December web chat for tips on potential year-end tax savings. Chat participants can get valuable information on how to prepare now with useful tax savings tips and a set of red flags on mistakes to avoid. WHO: Edward S. Karl, CPA, vice president of taxation for the American Institute of Certified Public Accountants, will host SBA’s free December web chat on “Tax Essentials for Small Business Owners.” Karl will answer questions about tax deductions and credits business owners can use to reduce their tax payments, as well as other tax-saving tips. WHAT: SBA’s web chat series provides small business owners with an opportunity to discuss relevant business issues online with experts, industry leaders and successful en

The use of independent contractors are a flexible option for employing workers and a legitimate way to avoid some payroll tax obligations. But government authorities are on the lookout for employers who misclassify their workers, when they are really employees. Read about the the most recent government efforts to correct this type of activity, whether it was done accidentally or on purpose. However, a new government (IRS) program allows employers to reclassify their employees on a voluntary basis, drastically reducing any back taxes or penalties owed on the status change. But only if you go to them first. For more details on what steps you can take to manage this issue, see the story on correcting worker misclassification . IRS Makes Voluntary Reclassification of Workers Less Taxing

This notification [PDF] explains the relief available to New York State taxpayers affected by Tropical Storm Lee.

President Barack H. Obama has declared certain counties in New York State to be disaster areas as a result of Hurricane Irene. As a result of this declaration, Commissioner Thomas H. Mattox has postponed certain tax filing and payment deadlines for taxpayers in these counties who were directly affected by the storm. The relief provided for in this notice applies to taxpayers directly affected by the storm in the counties of Albany, Clinton, Delaware, Dutchess, Essex, Greene, Montgomery, Nassau, Orange, Otsego, Rensselaer, Rockland, Saratoga, Schenectady, Schoharie, Sullivan, Suffolk, Ulster, Warren, and Westchester. This includes taxpayers residing in or having their principal place of business in these counties. In addition, the relief will also apply to taxpayers directly affected by the storm located in any additional counties in New York State that are declared disaster areas and eligible for federal tax relief after this notice is issued. The relief will also apply to taxpayers d

The IRS has published the first Automatic Revocation of Exemption List . It indicates approximately 275,000 nonprofits whose tax-exempt status has been revoked because they failed to file a Form 990, 990-N, 990-EZ, or 990-PF for three consecutive years; the list is available for downloading in both Excel and PDF form. Here's the PDF of the New York State list . As GuideStar notes , if an organization appears on the list, it must now must file a federal income tax return and pay federal income taxes. If it previously could accept tax-deductible contributions, it no longer can do so. "If your organization is not on the list, technically you don't have to do anything. This a good time, however, to reach out to your donors, funders, and other constituents and assure them that you are in good standing with the IRS. You may also wish to suggest that your supporters consult the list to ensure that the other nonprofits they give to are still exempt."

“The hardest thing in the world to understand is the income tax” --- Albert Einstein With the holidays behind us, people are now turning their attention to the annual challenge of preparing their tax returns. Although the SBDC isn’t in the business of giving tax advice, it is important for all of us to be knowledgeable about the current tax issues, regulations and schedules that affect small business. The New York State Small Business Development Center has collaborated with the National Association for the Self-Employed to develop and present a series of three webinars addressing tax topics of interest for small business owners. Although there are no prerequisites to attend any of the programs, you are encouraged to register for all three webinars. “Top 5 Tax Questions for the Self-Employed” Presented by: Keith Hall, National Tax Advisor for the National Association for the Self-Employed (NASE) What’s a person new to self-employment to do? This tax webinar covers these key topics: • W

Also, Taxpayers Impacted by Recent Tax Breaks Can File Starting in Mid- to Late February The Internal Revenue Service announced taxpayers will have until Monday, April 18 to file their 2010 tax returns and pay any tax due because Emancipation Day, a holiday observed in the District of Columbia, falls this year on Friday, April 15. By law, District of Columbia holidays impact tax deadlines in the same way that federal holidays do; therefore, all taxpayers will have three extra days to file this year. Taxpayers requesting an extension will have until Oct. 17 to file their 2010 tax returns... The IRS also reminded tax professionals preparing returns for a fee that this is the first year that they must have a Preparer Tax Identification Number (PTIN). Tax return preparers should register immediately using the new PTIN sign-up system available through www.IRS.gov/taxpros. Who Must Wait to File For most taxpayers, the 2011 tax filing season starts on schedule. However, tax law changes enact

The James J. Hill Reference Library has once again provided us with a useful resource for small businesses. The 2011 IRS Tax Calender for Small Businesses and the Self-Employed is a 12-month calender with day-to-day instructions on what needs to be done when in regards to business taxes. The "Game Plan for Success" can be printed out in calender form either month-by-month or in the traditional calender layout to remind a business owner when to do what. Each month also highlights a tax topic related to small business; for instance, “Preparation and Setting Up" for January, or “Tips on Wage Reporting” for December. In addition, the calendar also provides Tips for Business Success, a list of Forms and Publications, and a list of online resources and tools available for small businesses.

The New York State Department of Taxation and Finance today announced that a federal court judge has signed a temporary restraining order barring the furlough of state employees. This means that the previously-announced May 21 closure of the Department’s call center will not occur. The call center will be fully staffed and Department employees will not be furloughed on that day.

The 2008-2009 New York State Budget Act has drastically altered the way that franchise taxes will be determined for businesses. Last night CBS 6 News reported that the Tax Changes Anger Small Businesses . A Mr. Subb franchise owner in the Capital Region had his franchise tax jump from $425 last year to $3,000 this year. The franchise tax used to be based on payroll and is now based on receipts. A more in depth article was published on January 1st, 2009 in the CPA Journal . Written by Mark H. Levin, a copy of the article can be found here . The below tables were found in the original article.

Here are a few items the IRS would like the small business community to know about: e-News for Small Business “e-News for Small Businesses is a free electronic mail service designed to provide tax information for small business owners and self-employed individuals. It is distributed every other Wednesday.” The newsletter includes information about upcoming tax dates for small business, tax reminders and tips, and information on the IRS website. Subscribe here. ’09 Small Biz Tax Calendar, Ready for Businesses “This 12-month wall calendar is filled with useful information on general business taxes, IRS and SSA customer assistance, electronic filing and paying options, retirement plans, business publications and forms, and common tax filing dates. Each page highlights different tax issues and tips that may be relevant to small business owners with room on each month to add notes, state tax dates, or business appointments.” And it’s free! Order your copy here . An online version of the cal

The state tax department is portraying its website thusly: "Business taxpayers can refer to our new and improved web pages designed to help them comply with New York State tax law throughout the business lifecycle." For more information, select the links below: Starting or buying a business Expand a business Close or end a business

The state Tax Department has recently made available a new easy-to-use online NAICS Code Lookup service to locate North American Industry Classification System (NAICS) code for sales tax registration. "An accurate NAICS code will help us provide you with the sales tax returns, schedules, and other sales tax information specific to your type of business." It can also be useful for SBDC advisors who are entering records into various electronic databases.

Each year, the Office of Advocacy of the U.S. Small Business Administration is tasked with documenting the importance of entrepreneurship to the American economy and with highlighting policy issues of relevance to small firms. This report summarizes the publications produced by the Office of Advocacy’s Office of Economic Research in 2007. A copy of this report can be obtained here (PDF) . Should you need further information, please feel free to contact Chad Moutray at (202)205-6533 or advocacy@sba.gov. Yet, this study (PDF) documents the pervasiveness and the magnitude of the tax burden among small business owners in bankruptcy. The data suggest that the tax burden is more pervasive among small business owners in bankruptcy than among consumer petitioners. While less than one-quarter of all consumers in the bankruptcy sample reported tax debts, more than half of individual small business owners reported owing some tax debts. The research summary can be found here (PDF) . Should you ne

How does the economic safety net really hold? See The Effects of Taxes and Transfers on Income and Poverty in the United States: 2006 from the US Census.