Reminder: File Your New York “Information Returns for Franchisors” by June 20th

If you have any franchisees in New York, then don’t forget to submit your New York “Information Returns for Franchisors” by June 20th.

Not sure what you have to do? We’ve provided a brief summary below.

  1. How Does This Apply to You?
    • The New York “Information Returns for Franchisors” requirement applies to any franchisor that has at least one franchisee doing business in New York State that is required to be registered as a sales tax vendor in New York.
    • The requirement applies even if your New York franchisees did not make any sales in New York during the reporting period. In this event, you must use New York’s online reporting system, to indicate there were no reportable transactions.
  2. Due Date and Reporting Period:
    • This is an annual reporting requirement and your report is due by June 20th of each year.
    • Reporting Period – March 1st through February 28 (or 29)
  3. The Report – What is Required:
    • Using an Excel spreadsheet mandated by New York, you must report specific information abouteach of your franchisees doing business in New York State. The required information includes: franchisee’s name, FEIN, New York sales tax ID number, gross sales reported to you, sales tax collected by franchisee, royalty payments you received, royalty rate, and the amount of sales (if any) that you (or your affiliates) made to the franchisee.
  4. How to Submit the Report:
    • You must submit the report electronically through New York’s Online Tax Center, which can be accessed at http://www.tax.ny.gov/online/default.htm.
    • If you have not previously submitted reports or other tax filings to New York, you must first establish a business Online Services account.
  5. Franchisee notification requirement:
    • You must also provide each franchisee with a statement showing the information that you reported on your return about that franchisee.  The form Excel spreadsheet for the report and additional information about this requirement is available at http://www.tax.ny.gov/enforcement/audit/fran.htm.

If you have questions, please contact Regina Amolsch, 703-774-1211, ramolsch@plavekoch.com