NYS Sales Tax Audit Process

Forms, Procedures & Timelines

Phase 1: Audit

1. Audit Selection & Notification
Tax Department issues initial contact letter identifying audit period and assigned auditor.
📄 Initial Contact Letter · Typically covers 3 years

2. Information Document Request (IDR)
Auditor requests sales records, bank statements, invoices, and exemption certificates.
📄 IDR Letter · ⏰ 30 days to respond

3. Field Work & Analysis
Auditor reviews records, conducts sampling, and calculates proposed adjustments.
Several months to 1+ year

4. Statement of Proposed Audit Change (SPAC)
Auditor issues document showing proposed additional tax, penalties, and interest.
📄 SPAC Letter · ⏰ 30 days to respond

5. Informal Conference (Optional)
Request meeting with auditor or supervisor to dispute proposed changes.
Before Notice of Determination

6. Notice of Determination
Formal assessment of tax, penalties, and interest. Starts the appeal clock.
📄 Form DTF-582 · ⏰ 90 days to appeal

Phase 2: Administrative Appeals

7. Conciliation Conference (BCMS)
Informal process with Bureau of Conciliation and Mediation Services. Recommended first step.
📄 Form CMS-1 · ⏰ 90 days to file · 3-6 months to schedule

8. Conciliation Order
BCMS issues order sustaining, modifying, or canceling the assessment.
📄 Conciliation Order · ⏰ 90 days to appeal if you disagree

9. Formal Hearing (ALJ)
Petition for formal hearing before Administrative Law Judge at Division of Tax Appeals.
📄 Form TA-100 · ⏰ 90 days to file · 6-12 months to hearing

10. Tax Appeals Tribunal
Appeal ALJ Determination. Tribunal reviews record and briefs.
📄 Notice of Exception · ⏰ 30 days to file · 6-12 months for decision

Phase 3: Judicial Review

11. Article 78 Proceeding
Judicial review in NYS Supreme Court. Attorney required for this stage.
📄 Court Filing · ⏰ 4 months to file

⚠️ Critical Deadlines

Note: A CPA or EA can represent taxpayers through all administrative stages including the Tax Appeals Tribunal. An attorney is only required for Article 78 court proceedings.

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