New York restaurant owners are at risk of losing their business if they fall behind on their taxes.

Restaurants are often targeted by restaurant sales tax audits, and seizures if they don’t pay taxes. Running a restaurant is VERY challenging, especially when you have low profit margins and constant cash flow problems. Bottom line, your needs are real and sometimes you might fail to pay your taxes on time. If you don’t address your tax issues, you could risk losing your business.

Consequences for failing to collect/remit sales taxes are severe

Penalties and interest can be as high as 14-15% can be imposed if you don’t pay the sales tax owed to New York.

Your business could also have its certificate of authority revoked, and business owners can face criminal prosecution.

In some instances, owners, officers, employees, or partners, can be personally held liable for the sales tax owed.

New York also has a number of different to collect back taxes, like warrants, levies, income execution and seizure. In addition, individuals can also lose their driver’s license.

If you haven’t collected or paid sales tax, you could qualify for New York’s voluntary disclosure and compliance program.

With this program the state won’t impose any penalties, or bring criminal charges against taxpayers who have a history of noncompliance and come forward to pay their tax liabilities. Qualified taxpayers are also eligible for a limited look back period.