The N.Y. State Department of Taxation and Finance released a revised taxpayer guidance on Aug. 18.
New York State enacted legislation requiring all franchisors having franchisees within the state to file annual information returns with the State Department of Taxation and Finance, reporting the gross sales of each franchisee within the state, as well as the sales by the franchisor to the franchisee and any franchisee income reported to the franchisor. The franchisor must also report such information to the relevant New York franchisees.
The new requirements were contained in amendments to Section 1136 of the New York Tax Law. The legislation, one of the state’s voluminous budget bills (A. 157, Chapter No. 57), became effective on April 7, 2009.
The revised information include NY department’s creation of an automatic 90-day extension process for the initial, as well as all future reporting deadlines.
More compliance information can be found on the tax department’s website visit: Franchisor annual reporting requirement