New York State, in an effort to recoup state back taxes and increase revenues in this tough economy, has implemented a program called “PAID” which stands for the “Penalty and Interest Discount” Program. Basically, NY taxpayers have until 3/15/10 to make tax payments on NY back taxes owed in order to reduce penalties and interest that have accrued. Here are some of the details in terms of savings:
- Save 80% on NY back tax penalties and interest for tax bills issued on 12/31/03 or before
- Save 50% on NY back tax penalties and interest for tax bills issued after 12/31/03 but on or before 12/31/06
With NY running deficits, not only will compliant taxpayers help the state but they will also help themselves by preventing any further negative consequences of inaction like tax levies, tax liens, and continual accrual of interest. If you are interested in reading more about the program that expires March 15th visit this link.
If you have already entered into an Installment Agreement before the start of PAID, you can still take advantage of this program’s savings but you will need to make full payment of the total remaining balance. If you have questions or need a tax professional on your side feel free to request a free quote or give us a call.
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