New York Announces COVID-19 Tax Relief for Restaurants and Food Service Establishments

New York has issued a notice announcing sales and use tax relief for restaurants and food service establishments due to COVID-19. An executive order allows the Tax Commissioner to abate interest on quarterly and part-quarterly (monthly) sales and use tax filings and remittances with a due date of December 21, 2020. The tax relief is available to sales tax vendors that:

• are principally engaged in business in New York City as a restaurant or other food service establishment that had to suspend indoor dining due to the Governor’s Executive Order 202.81; or
• are principally engaged in business as a restaurant or other food service establishment that had to suspend indoor dining due to the Governor’s Executive Order 202.68 because it is located in an area that was a designated “orange zone” on December 18, 2020.

Returns must be filed and the amount due must be paid by March 22, 2021 for this relief to apply. The tax relief is not available to any retailer or grocery store that operates a restaurant or other food service establishment within its store. This relief also is not available to any vendor who is a participant in the sales and use tax PrompTax program.

Taxpayers seeking tax relief for COVID-related filing and payment delays may request relief by visiting the Department’s website and clicking on Tax Department response to novel coronavirus (COVID-19) for instructions on how to apply for relief. Additionally, if taxpayers receive a penalty notice for failure to file returns or make payments due December 21, 2020, they can follow the instructions on the notice to request abatement of interest and late filing or late payment penalties that would otherwise apply. (Important Notice N-20-12, New York Department of Taxation and Finance, December 18, 2020)