New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter IV - Sales And Use And Other Miscellaneous Taxes › Subchapter A - Sales And Use Taxes › Part 533 - Vendors Obligations › Section 533.2 - Records to be kept

Current through Register Vol. 46, No. 28, July 10, 2024
Tax Law, §§ 1132(c), 1135, 1138(a), 1142(5)
(a)
General.
(1) For the proper administration of the
				  Sales and Use Tax Law and to prevent evasion of the sales tax, it is
				  statutorily presumed that all receipts from sales and purchases of property or
				  services of any type mentioned in subdivisions (a) through (d) of section 1105  of the Tax Law, all rents for
				  occupancy of the type mentioned in subdivision (e) of such section, and all
				  amusement charges of any type mentioned in subdivision (f) of such section are
				  subject to the tax until the contrary is established. The burden of proving
				  that any receipt, amusement charge or rent is not taxable is on the vendor or
				  the customer. To satisfy his burden of proof, a vendor must maintain records
				  sufficient to verify all transactions.
(2) Upon audit by the department, or at such
				  other times as the department requests, the vendor or user must present all the
				  records described in this Part, kept in a manner suitable to determine the
				  correct amount of tax due, together with such documentation, summaries and
				  schedules, including any New York State or Federal tax returns or schedules as
				  the department may request. The vendor or user may elect to retain records as
				  hard-copy records, electronic records, or both. Such vendor or user must
				  provide the auditors of the department with suitable facilities for conducting
				  their audit or examination. In those instances where the vendor or user
				  maintains or processes records on an electronic data processing system, the
				  department reserves the right to have such records presented on
				  machine-sensible form, and the vendor or user must furnish access to such
				  equipment or records as is necessary for the department to carry out its
				  standard audit procedures. See Part 2402 of this Title concerning taxpayer
				  record retention formats. See, also, paragraph (f)(4) of this section for
				  specific provisions that supplement Part 2402.
(3) All records required to be kept by this
				  Part shall be preserved for a period of three years from the due date of the
				  return to which they relate, or the date of filing, if later, except as
				  provided in paragraph (4) of this subdivision, and longer than three years if
				  their contents are material to any period open or extended pursuant to statute,
				  or in any action or proceeding pending before the Department of Taxation and
				  Finance or in a judicial proceeding or action.
Cross-reference:
For waivers, see Part 535 of this Title. For taxable
					 transactions, see Part 527 of this Title.
Example 1:
If a vendor applies for a refund or credit just before the
					 statute of limitation expires and the refund or credit is pending after the
					 statute expires, the vendor must retain all records relating to the quarter to
					 which the refund or credit applies until a final determination is made on the
					 application. Such records are material in the administration of the Tax
					 Law.
Example 2:
If a vendor is audited by the department and does not agree
					 with the audit findings, the vendor must keep all records of the audited period
					 until a final determination is made on the audit. Such records are material in
					 the administration of the Tax Law.
Example 3:
A department store leases cash registers for five years
					 from an office supply company. A copy of the original lease must be retained by
					 the lessor (the office supply company) and the lessee (the department store)
					 until three years after the tax on the last lease payment was payable by the
					 lessor to the Department of Taxation and Finance.
(4) Guest checks must be retained for at
				  least three years, unless an application is filed with the District Office
				  Audit Bureau and permission is granted by the bureau to destroy the guest
				  checks before the expiration of the three-year statute of limitation. For form
				  of records, see subdivision (f) of this section.