Everybody knows that the state is hurting for money – Governor David Paterson has been saying so for months – so Albany has made it easier for delinquent taxpayers to get caught up.
New York State Department of Taxation and Finance Acting Commissioner Jamie Woodward announced on Wednesday, January 13, that nearly 800,000 taxpayers may be eligible to participate in the new Penalty And Interest Discount (PAID) Program.
The PAID plan offers substantial reductions in penalty and interest charges to people who pay off older tax debts, if they are paid in full by March 15.
PAID reduces the accrued penalty and interest on unpaid tax bills more than six years old by 80 percent, and by 50 percent on tax bills that between three and six years old. Tax bills issued after December 31, 2006 are not eligible.
“This program is mutually beneficial to both taxpayers and the state government,” Paterson said. He noted that the plan “could provide much-needed revenue to the state.”
With a subtle reminder that state tax amnesty and forgiveness programs are often followed by aggressive collection campaigns, he added, “While also helping taxpayers repair their credit histories and avoid costly legal action.”
The Tax Department is mailing letters to people who might qualify for the PAID program, inviting them to participate, though they admit that, due to the age of some of the debts, some delinquent taxpayers may not get the letter.
“While we are taking additional steps to attempt to secure current address information,” Woodward said, “The department will not be able to reach every eligible taxpayer through the mail.”
To give everyone who might qualify a chance, information is posted on the state’s Tax Department web site: www.nystax.gov, that will guide people who have questions about their eligibility.
“Anyone can check to see if they have a liability that they may have lost track of, but they should check before the program ends or they won’t be able to take advantage of the savings,” Woodward said.
Taxpayers without web access can also call 518-457-1726 or toll-free at 888-272-9697 for further information and instructions, he said.
