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Department of Taxation and Finance

Opening and maintaining a New York State segregated sales tax bank account

  1. Open a segregated sales tax account.

    • Open a checking or savings account in a federally insured bank or credit union located in New York State.  You will need to provide the Tax Department with your bank name and account number.
    • Use this account only for collecting and remitting New York State sales and use tax.
    • Notify the bank that the account cannot have a debit block, since you will be making online payments to the Tax Department.
       

  2. Deposit sales and use taxes.

    • Once a week, you must deposit all the sales and use taxes you collect into your segregated sales tax account.
       

  3. Create a Business Online Services account (if you don't already have one).

    • You are required to Web File your sales tax returns and make payments online through your account. 
    • Create your account.
        

  4. Make payments through Online Services.

    1. Use your username and password to log in to your Online Services account.
    2. On your Account Summary homepage, select the menu in the upper left-hand corner of your screen.
    3. Select Sales tax - file and pay in the menu, then select Sales tax advance payment from the drop down.
    4. On the Sales Tax Payment: Sales and Use Tax Payment page, choose the filing period that corresponds to the payment you are making, enter the payment amount, and select Continue.
    5. On the Sales Tax Payment: Pay from Bank Account page, select a saved bank account or enter a new one, and select Continue.
    6. On the Sales Tax Payment: Review and Verify page, verify the information entered and select Submit.
    7. Make note of the confirmation number.  If you get an error message, select Edit, correct the error, then select Submit.
    • You must pay the entire balance of the account to the Tax Department once a week.
    • Be sure to make your online payment by Thursday of each week.
       

  5. File returns through Online Services.

    • File your sales tax returns on time using Sales Tax Web File.
    • Enter as prepayments on your sales tax return, each of the online payments you made on Form ST-330, Sales Tax Record of Advance Payment.
       
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