04 Jun 2012
The use of Automated Sales Suppression Devices to Evade New York State Sales Tax
Legislative Office Building
11:00 AM to 1:15 PM Archived Video
NOTICE OF PUBLIC HEARING
Oral Testimony by Invitation Only
Monday, June 4, 2012
Hearing Room A
Legislative Office Building
Albany, NY 12247
SUBJECT: The use of Automated Sales Suppression Devices to Evade New York State Sales Tax
PURPOSE: To examine the use of automated sales suppression devices in evading New York State Sales Tax collection, including the so called tax-zapper software that lets businesses, especially those that deal mostly in cash, to underreport taxable sales and pocket money that should be given to the government.
The Internal Revenue Service finds more than half of all cash businesses under-report income from their sales. The IRS does not track the use of zapper software. As a result, New York State has increased their focus on cash businesses.
A few years ago, New York State operated a series of stings operations in which cash register vendors were invited to pitch their equipment to phony restaurants. The results were shocking. In many cases, the vendors offered the phony restaurant opportunities to underpay their taxes using software.
The purpose of this Committee Hearing is to investigate the use of automated sales suppression devices and software and the impact its having on the State and its taxpaying residents. The Investigations and Government Operations Committee will convene to examine the impact such devices are costing the State, and which measures are needed to remedy this situation and enforce the proper collection of sales tax.
Oral testimony will be accepted by invitation only and limited to 10 minutes in duration. 15 copies of any prepared testimony should be submitted at the hearing registration desk. The Committee requests advance receipt of prepared statements. Written testimony will also be accepted and may be sent to the contact person listed on the reply form. In order to further publicize the hearing, please inform interested parties of the Committee’s interest in receiving written testimony from all sources.
In order to meet the needs of those who may have a disability, the Legislature, in accordance with its policy of non-discrimination on the basis of disability, as well as the 1990 Americans with Disabilities Act (ADA), has made its facilities and services available to all individuals with disabilities. For individuals with disabilities, accommodations will be provided, upon reasonable request, to afford such individuals access and admission to Legislative facilities and activities.
Senator Carl L. Marcellino, Chairman
Senate Standing Committee on Investigations and Government Operations