Franchisors annual reporting requirement
To file, create an online services account (if haven't already done so).
This filing requirement applies to you if:
- you’re a franchisor (a person who grants a franchise); and
- you have at least one franchisee (a person to whom you granted a franchise) that is doing business in New York State and is required to be registered as a sales tax vendor. You must file even if the franchisee made no sales in New York during the filing period.
You need to tell us each filing period if you have no reportable transactions
After logging into your online services account, select Franchisor Transaction Information and check the box that indicates that you have no reportable transactions. You may need to create an online services account if you don't already have one.
When to file
Filing periods and due dates
|Filing period||Return due date|
|March 1 - February 28 (29)||June 20|
What you must report on your return
You must report specific information, including the identity of, and payments you received from, each of your franchisees doing business in New York State and certain sales and payment related information. For example, you must include the name of each franchisee and the gross sales in New York State for each franchise location as reported to you. For a complete list of the information that you must report, see TSB-M-09(9)S, New Requirement for the Filing of Information Returns for Franchisors.
How to file
- Download and complete the Excel spreadsheet.
- If you are using the MS Excel spreadsheet template provided by the Department, enter your data into the spreadsheet and select save as .CSV (comma delimited) file. Do not remove any existing text in the spreadsheet.
- If you are not using the MS Excel spreadsheet template, follow the column requirements stated in the file formatting document above. Create a data file with data only. Do not include the header row. Your data must be in a comma delimited format. If commas are contained within a column, surround the column with double quotes.
- Acceptable file extensions include .CSV (comma delimited), .TXT, or .DEL
- Create a business Online Services account (if you have not already done so). Once registered, login and select Annual Franchisor Transaction Information, and follow the directions to upload your spreadsheet.
- You can submit a replacement spreadsheet if you’d like to correct an error in the original uploaded file. You must submit the replacement file before the filing deadline to avoid a penalty.
Franchisee notification requirement
In addition to filing the information return, you’re required to provide a statement to each franchisee that shows the information that you reported for them on the return. See page 3 of TSB-M-09(9)S for more details.
|Failure to provide the required information or true and correct information on your return||$500 penalty for 10 or fewer failures and a $50 penalty for each additional failure in excess of 10|
|Failure to notify each franchisee about the statement you made on the information return about them|
|Failure to file the information return on time||$500 to $2000 penalty|
For more information
- See TSB-M-09(9)S, New Requirement for the Filing of Information Returns for Franchisors.
- See TSB-M-09(9.1)S, Additional Guidance Relating to the New Requirement for the Filing of Information Returns for Franchisors
- Contact the Sales Tax Information Center