New York State recently established an amnesty program called PAID (Penalty and Interest Discount) to encourage taxpayers to pay off delinquent tax liabilities that are at least three years old. The program began January 15, 2010 and will end on March 15, 2010.
If a taxpayer makes all payments by the program’s expiration date, March 15, 2010, they can save 80% of accrued interest and penalty on unpaid tax bills that were issued on or before December 31, 2003 and 50% of accrued interest and penalty on unpaid tax bills that were issued between January 1, 2004 and December 31, 2006. Tax bills that are less than three years old are not eligible under this program.
New York has stated that taxpayers who qualify for this program and do not pay in full by March 15, 2010 will lose this opportunity to save forever and the unpaid tax debts will continue to accrue interest at the full statutory rate.
The New York Tax Department will send out written notices to each eligible taxpayer, inviting the taxpayer to participate in the PAID program. The notices will show the tax liabilities that are due and the reduced amount that can be paid to settle the debt in full under the PAID program.
If you receive one of these notices and would like assistance settling your outstanding tax liabilities with New York, please call our offices at (215) 665-3960 and ask to speak with one of our shareholders or email us at info@taxwarriors.com.