Are you a franchisor? Do you have any franchisee locations in New York? If you answered,” yes,” to both of these questions, you need to file an annual information return. Do not delay. The deadline is March 20th .
To prepare for the filing you will need information about the revenues and royalties reported to you by your New York franchisees broken down by franchisee. The information return is by the New York Tax Department to verify the accuracy of income and sales tax returns filed by franchisees. This is New York’s way of auditing franchisees to see if they are paying proper taxes.
New York law allows for up to a $2,000 penalty for each information return that is not submitted.
Need more information about the information return, give us a call or drop us an email.