Skip to content
Kintsugi
Book a DemoSign Up

Kintsugi Notice Hub

New York sales tax notices

Got a letter from the New York State Department of Taxation and Finance? Find it below to see what it means, why businesses usually receive it, and what to do next.

Sources checked

Tax authority

New York State Department of Taxation and Finance (opens in a new tab)

Official notice guide (opens in a new tab)

Disagree with a notice?

If the notice says you have protest rights, request a conciliation conference with the Bureau of Conciliation and Mediation Services (Form CMS-1-MN or online), or file a petition for a hearing with the Division of Tax Appeals. A written protest is required even if you already objected during the audit. If the notice has no protest rights, you can only request a review.

Deadline: Generally within 90 days of the date the notice was issued; check the notice for the exact time limit.

Source: New York State Department of Taxation and Finance (opens in a new tab)

Failure to file

The authority has no return on record for a period it expects one, often because an account is open but filings stopped.

Failure to file

Notice of determination of tax due (return not filed)

A notice of determination issued because a sales tax return was not filed. You may still file the original return within a set window.

Why you got it

  • A required sales and use tax return was not filed

What to do

  1. File the missing original return within 180 days of the notice's mail date and pay the tax shown
  2. Late-filing penalties and interest generally remain, but you can request penalty abatement for reasonable cause in Online Services (Disagree with penalty only)
  3. Protest by the deadline on the notice if you disagree with the amount

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Response window: An original return may be filed within 180 days from the mail date of the notice.

Source: TSB-M-25(1)S, (1)M: Amending and Filing Sales and Use Tax Returns (opens in a new tab)

Assessment

A proposed or final determination of tax owed, sometimes estimated when returns were never filed.

Assessment

Notice of Determination

The formal assessment of sales tax due, issued when audit findings are not resolved. It carries protest rights.

Why you got it

  • You did not agree with audit findings
  • An audit found tax due

What to do

  1. Check the protest deadline on the notice (generally 90 days) and decide whether you disagree with the tax
  2. To dispute it, file a written protest (conciliation conference or Division of Tax Appeals petition) by that deadline, even if you objected during the audit
  3. If you agree with the tax, pay it; if penalties were assessed and you had reasonable cause, request abatement in Online Services (Respond to department notice, then Disagree with penalty only)

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Response window: Generally 90 days from the date the notice was issued.

Source: Audit (opens in a new tab)

Audit

A request for records or notice that the authority is examining your returns.

Audit

Statement of Proposed Audit Changes

Summarizes the auditor's proposed findings. You are asked to sign it if you agree or mark your disagreement and return it.

Why you got it

  • A field or desk audit found additional tax due

What to do

  1. Review each finding against your records and send the auditor any additional information
  2. If you disagree, mark your disagreement and return it to the address on the document
  3. If you agree, sign and return it; unpaid amounts will be billed
  4. If penalties are included and the failure was due to reasonable cause, not willful neglect, explain this in writing with supporting documents

Source: Audit (opens in a new tab)

Registration

Changes to your permit or account: required registration, filing-frequency changes, revocation, or closure.

Registration

Notice of proposed suspension or revocation of Certificate of Authority

Sent by certified or registered mail when the department plans to suspend or revoke your Certificate of Authority. The action takes effect unless you challenge it.

Why you got it

  • Willful failure to file returns or pay tax
  • Filing a false return
  • Failure to post a required bond or trust account

What to do

  1. Read the stated basis for the action
  2. Request a conciliation conference or hearing as the notice instructs
  3. If the suspension takes effect, return the Certificate of Authority and stop taxable sales

Source: Publication 900, Important Information for Business Owners (opens in a new tab)

Collections

Enforcement on unpaid balances, such as liens, levies, warrants, or referral to a collection agency.

Collections

Tax warrant

A tax warrant is equivalent to a civil judgment. It is filed with the Department of State and the county clerk, becomes public, and creates a lien on your real and personal property.

Why you got it

  • A tax debt was not resolved in time and became fixed and final

What to do

  1. Pay the total warranted balance in full to satisfy the warrant
  2. If you cannot pay in full, ask about an installment payment agreement to prevent further collection
  3. Note that the warrant stays on file until paid in full

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Source: Tax warrants (opens in a new tab)

Collections

Levy

A legal seizure of your property. The department serves it on a bank or other third party holding your money, after a tax warrant has been filed.

Why you got it

  • An unresolved tax debt with a filed tax warrant

What to do

  1. Call 518-457-5893 to resolve the levy
  2. Check whether any funds are exempt under CPLR Article 52

Before you pay penalties: check whether you can ask for them to be waived, and what the state needs paid first. How to ask

Source: Levies (opens in a new tab)

Ask for penalty relief

Penalties on a New York notice aren't always final. You can ask for them to be waived. Follow the steps below, including anything the state requires you to file or pay before it reviews the request.

Penalty abatement (reasonable cause)

  1. File any missing returns and pay the tax due to stop more penalties and interest from building up
  2. In Online Services, choose Respond to department notice, then I received a bill, and enter the information from your bill
  3. Select Disagree with penalty only, pick the reason, explain the reasonable cause and attach supporting documents

What qualifies: Reasonable cause and not willful neglect (20 NYCRR 2392.1)

Source: Sales and Use Tax Penalties (Tax Bulletin) (opens in a new tab)

Before you respond

  • Check the date on the notice. Response windows usually run from that date, not the day you open it.
  • Match the account number and filing period to your own records before paying or disputing.
  • If returns are missing, filing the actual returns usually replaces an estimated bill. Confirm how on the notice or with the authority.
  • Ask about penalty relief before paying penalties, and check what must be paid with the request. See how
  • Keep a copy of the notice and everything you send back.

This page is general information, not tax or legal advice. Notice names and procedures change, so always follow the instructions on your notice and the official sources linked above.

Need the rates, nexus thresholds and filing rules? Read the New York sales tax guide.

See how Kintsugi collects every tax notice in one place.

More notice guides

Free exposure assessment, no commitment.

See what sales tax is really costing you

Book a demoGet started for free

30-minute walkthrough · No credit card required · See your own data live