The New York State Department of Taxation and Finance today encouraged taxpayers with unpaid tax debt or related issues to consider using one of its convenient programs to get a fresh start.

“We offer taxpayers a variety of ways to put what may seem to be overwhelming tax debt or other issues behind them,” said New York State Commissioner of Taxation and Finance Jerry Boone. “The first impulse shouldn’t be to ignore letters or payment notices from us, which only exacerbates the problem by allowing accrual of penalties and interest, but rather to contact us promptly and work with us to resolve the issue and avoid increased debt.” 

The Tax Department understands that unforeseen circumstances can arise that prevent individuals and businesses from paying their taxes in full and on time. As a result, opportunities to arrange a payment plan, reach a compromise, or challenge a Tax Department bill or action are provided.
 
Tax Department staff will work with the taxpayer or designated representative to find a mutually beneficial approach, such as by reaching an Installment Payment Agreement (IPA).

The number of tax debtors establishing IPAs and the revenue generated from the program are both on pace to increase for the third consecutive year. Since April, more than 48,000 taxpayers have taken advantage of this option—a 20% increase from the same period last year; they paid a total of $122 million in back taxes, an 11% increase. Total revenue from IPAs for the fiscal year is expected to exceed $350 million, the third consecutive annual increase.

The Offer in Compromise Program is another option that can help financially distressed taxpayers, such as those suffering “undue economic hardship,” get on the path to long-term compliance.

Taxpayers who owe back taxes and haven’t filed related returns may also be eligible for the Voluntary Disclosure and Compliance Program. This program can help taxpayers avoid penalties and possible criminal charges.

In addition, taxpayers can use Tax Department Online Services accounts to make payments, check balances, respond to notices, update their information and more. Visit www.tax.ny.gov to set up an account or log in to an existing account.

For more information

Installment Payment Agreement

Offer in Compromise Program

Undue Economic Hardship

Voluntary Disclosure and Compliance Program

Challenge Tax Department actions

Create an Online Services account