State Services

New York Sales Tax Audit Defense & Compliance

Whether you're facing a New York sales tax audit, fighting an assessment, or trying to get compliant before the state finds you — our team handles your case end to end. Former New York state auditors, sales tax attorneys, and CPAs on staff.

New York Sales Tax — Frequently Asked Questions

How does a New York DTF sales tax audit work?

The New York Department of Taxation and Finance (DTF) typically initiates a sales tax audit with a written notice. The audit covers up to three years of sales tax records. An auditor will review your books, records, and tax returns. If discrepancies are found, a Notice of Determination is issued. You have the right to challenge the assessment through a formal protest or Division of Tax Appeals hearing.

What triggers a New York sales tax audit?

Common triggers include high cash sales volume, industry-specific audit programs (restaurants, contractors, auto dealers), mismatches between reported income and sales tax filings, tip-offs from employees or competitors, and random selection as part of DTF compliance programs.

What is the New York sales tax rate?

New York state sales tax is 4%. New York City adds 4.5%, bringing the combined NYC rate to 8.875%. Other counties range from 7% to 8.625% combined. The rate depends on the county and municipality where the sale occurs.

Can I appeal a New York sales tax assessment?

Yes. You have 90 days from the date of a Notice of Determination to file a petition with the Division of Tax Appeals. An administrative law judge will hear your case. If unsatisfied, you can appeal to the Tax Appeals Tribunal and ultimately to the Appellate Division of the New York Supreme Court.

What is a New York sales tax Voluntary Disclosure Agreement (VDA)?

A VDA allows businesses with unreported New York sales tax liability to come forward voluntarily, typically in exchange for a waiver of penalties and a limited lookback period. It must be filed before DTF contacts you. Sales Tax Helper can manage the VDA process on your behalf.

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