Corporate Attorney in New York City

Sales tax in New York is imposed on the value added to goods and services, and while the consumer pays it, the business must file the returns as a trustee for the state. Depending on your specific business entity structure, the required state tax forms and due dates will vary significantly. For example, while S-Corporations generally file by March 15th, C-Corporations typically have a deadline of April 15th (for calendar year filers). The Franchise Tax under Article 9 A is due regardless of profit. This tax often includes a fixed dollar minimum based on New York receipts, meaning you owe even if you had no net income. Failure to file these returns on time can result in a late filing penalty of up to 25 percent, plus accruing interest. Improper or intentional evasion, such as willful underreporting, can even result in criminal prosecution and personal liability for responsible officers.

Employers are required to withhold both federal income tax using IRS Form 941 and New York State income tax via Form NYS 45 on a quarterly basis. Form NYS 45 serves as a combined return for withholding, wage reporting, and unemployment insurance, streamlining the process but increasing the stakes for accuracy. Adjustments to these withholdings must be made carefully based on dependents and income levels as outlined in IRS Publication 15 T. Beyond taxes, New York mandates participation in the "Big Four" insurance programs: Social Security and Medicare, Unemployment Insurance, Disability Benefits Law (DBL), and Workers' Compensation. Failure to properly enroll employees in these programs can lead to retroactive premium assessments, heavy civil penalties under Section 52 of the Workers' Compensation Law, and potentially criminal charges in severe cases. Additionally, a stop work order could be issued, effectively shutting down your business operations until compliance is achieved.

To survive IRS scrutiny or state audits, businesses must retain thorough documentation, including invoices and cash register slips, while strictly separating personal and corporate funds. Under the Internal Revenue Code, expenses must be both "ordinary and necessary" to be deductible, and substantiating this requires clear evidence. A clear chart of accounts helps prevent the overstatement of deductible expenses, which is a common trigger for penalties. Furthermore, legal counsel can identify valid tax saving opportunities such as Research and Development (R&D) credits or Net Operating Loss (NOL) carryforwards to offset future profits. These strategies must be applied correctly to avoid triggering an audit or disqualification from these valuable incentives, ensuring that your tax minimization strategies are defensible under the law.

Regular consultation allows you to address potential issues in your tax filings or employment practices before they attract the attention of regulators. Legal professionals can review your financial strategies to ensure they align with the latest changes in New York Tax Law and federal regulations, which are subject to annual amendments. This proactive approach not only minimizes the risk of audits but also positions your company for sustainable long term growth. Mistakes in tax filing or insurance registration often go unnoticed until it is too late, making this partnership essential. Moreover, should a dispute arise, having an established relationship with counsel affords you the protection of attorney client privilege during sensitive internal reviews.